Zambia’s economy outperformed expectations last year, surpassing growth forecasts from both the government and the International Monetary Fund (IMF), driven by a sharp rise in fourth-quarter output.
- Zambia’s economy grew by 4% in 2023, exceeding expectations.
- The GDP expansion was driven by a sharp rise in fourth-quarter output, with an impressive 8.6% growth in the last three months.
- The surge was fueled by a strong recovery in the agricultural sector.
Zambia’s economy outperformed expectations last year, surpassing growth forecasts from both the government and the International Monetary Fund (IMF), driven by a sharp rise in fourth-quarter output.
According to preliminary data, the country’s gross domestic product (GDP) expanded by 4% in 2023, down from 5.4% last year, acting statistician-general Sheila Mudenda announced on Thursday.
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This figure far exceeded the IMF’s projection of 1.2%, as well as estimates by President Hakainde Hichilema’s administration, Bloomberg reported.
The economy recorded an impressive 8.6% growth in the last three months of the year, the fastest pace in more than a decade.
The surge was fueled by a strong recovery in the agricultural sector, following Zambia’s worst drought in over a century, alongside robust performance in the mining industry.
Zambia, Africa’s second-largest copper producer, saw a significant rise in metal production last year, reinforcing its dependence on copper, which accounts for more than 70% of the country’s export earnings.
Total copper output, including production from small-scale miners, surpassed 820,000 tons in 2023, Mines and Minerals Development Minister Paul Kabuswe announced in January.
The agricultural sector also saw a remarkable turnaround, with output soaring by 27.6% in the fourth quarter after contracting by 17.3% in the previous three months. Meanwhile, the mining sector surged by 26.8%, up from just 3% in the prior quarter.
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Inflation drops for the first time in over a year
For the first time in over a year, Zambia’s inflation rate has declined, offering the country some much-needed economic relief.
The drop was driven by lower prices for essential food items such as bread and cereals, following increased rainfall that helped ease the effects of the worst drought in nearly a century.
In March, food price inflation slowed to 18.9%, down from 20.6% in the previous month, marking a significant improvement in the cost of living.
