By Chris Mfula
LUSAKA, May 2 (Reuters) - Zambia's economy is projected
to expand 4.2% in 2023, Secretary to the Treasury Felix
Nkulukusa said on Tuesday, with growth dipping compared to last
year as the southern African country battles to wrap up a
long-delayed debt restructuring.
Preliminary data indicated that the economy grew by 4.7% in
2022, a slight uptick from the 4.6% expansion in 2021, Nkulukusa
said in a statement. GDP growth is forecast to be 4.8% in 2024
and 4.7% in 2025.
Zambia defaulted on its debt in 2020 and has struggled to
agree a relief deal with lenders, with policymakers saying the
delays were harming investment and pushing up inflation.
Zambia's public and publicly guaranteed debt was $25.4
billion as at end March 2023, Nkulukusa said, with central
government external debt increasing by 1.0% to US $14.09 billion
from US $13.96 billion at the end of 2022, he said.
"The increase in debt stock was largely on account of
disbursements received from multilateral creditors for budget
support and project loans," he said.
Zambia's government is targeting bringing down inflation to
within the central bank's target band of 6-8% by the end of the
year and achieving a fiscal deficit of not more than 7.7% of
GDP, the statement said.
Inflation rose to 10.2% in April compared to 9.9% in March,
the first time it has been in double figures since May 2022 .
(Reporting by Chris Mfula; Editing by Rachel Savage and
Alexander Smith)
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