Zambia’s Economy Surpasses Growth Forecasts Amid Strong Q4 Performance
Zambia’s economy outperformed expectations in 2023, exceeding 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) grew by 4% in 2023, down from 5.4% in 2022, acting Statistician-General Sheila Mudenda announced on Thursday.
This figure far exceeded the IMF’s projection of 1.2% and the estimates of President Hakainde Hichilema’s administration, Bloomberg reported.
The economy recorded an impressive 8.6% growth in the last quarter—the fastest pace in over a decade—bolstered by a strong recovery in agriculture and robust mining sector performance.
Zambia, Africa’s second-largest copper producer, saw a significant increase in metal production, reinforcing its reliance on copper, which accounts for more than 70% of the country’s export earnings.
Total copper output, including production from small-scale miners, exceeded 820,000 tons in 2023, Mines and Minerals Development Minister Paul Kabuswe announced in January.
The agricultural sector also rebounded sharply, with output surging by 27.6% in the fourth quarter after contracting by 17.3% in the previous three months. The mining sector also saw remarkable growth, expanding by 26.8% compared to just 3% in the prior quarter.
For the first time in over a year, Zambia’s inflation rate declined, bringing much-needed economic relief. The drop was driven by lower prices for staple foods such as bread and cereals, helped by improved rainfall that eased the impact of the country’s worst drought in nearly a century.
In March, food price inflation fell to 18.9%, down from 20.6% in the previous month, marking a notable improvement in the cost of living.
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