/ 23 November 2001

ECONOMIST LOWERS ZAMBIAN GROWTH OUTLOOK

WEAKER copper prices and demand has lowered growth forecasts in Zambia, the London-based Economist Intelligence Unit (EIU) said in its latest update on Wednesday. “We (the EIU) have lowered our forecast of real GDP (gross domestic product) growth in 2002 to 4,3% despite increased mining output, because of weak copper demand and output,” said the EIU. “The rate of real GDP growth is forecast to pick up to 4,6% in 2003.” It added that food prices had already started to rise and are expected to increased further because of the poor maize harvest in 2000/01. According to the EIU Zambia’s external debt is expected to rise to about $5,96-billion in 2002 and $6-billion in 2003. “Despite debt relief under the heavily indebted poor countries initiative, the debt-servicing ratio will remain high at 36,4% in 2002 and 37,1% in 2003, as Zambia will be repaying a recent IMF (International Monetary Fund) loan. – Irin