Zambia’s Economy Shows Resilience, GDP Grows by 4.5% – IMF

The Zambian economy has demonstrated resilience amid last year’s drought, supported by a record-high maize harvest and mining production, the International Monetary Fund (IMF) said in a statement.

The country’s economic activity continues to expand, and inflationary pressures have eased in 2025 with half-year gross domestic product growth of 4.5%.

IMF said program implementation has progressed, although challenges remain.  The authorities are advancing legislative reforms in line with program commitments.

In meetings with the authorities, IMF staff team led by Ms. Mercedes Vera Martin discussed recent economic developments and policy priorities under Zambia’s program supported by the Extended Credit Facility (ECF) arrangement.

Martin said, “The IMF team held constructive and productive discussions with the Zambian authorities on recent economic developments and policy measures needed to advance reforms under the ECF-supported program.

“The Zambian economy has demonstrated resilience amid last year’s drought, with real GDP growth at 3.8 percent in 2024 and 4.5 percent in the first half of 2025, boosted by a record-high maize harvest and mining production.

“Real GDP growth is projected at 5.2 percent and 5.8 percent in 2026, respectively, as limited hydropower generation and periodic load management would continue to weigh on non-mining economic performance. Inflationary pressures are easing, supported by lower fuel and food prices, exchange rate appreciation, and the impact of tight monetary policy.

“Preliminary data show a current account deficit of 2.0 percent of GDP in the first half of 2025, resulting from lower official grants, partly reflecting the unwinding of drought-related support, and a broad-based increase in imports.

“Liquidity conditions have improved, investor demand for government securities has remained strong, and robust private sector credit has supported the manufacturing, agriculture and energy sectors.

“Program implementation has progressed, although challenges remain. The authorities are advancing legislative reforms to strengthen financial sector supervision, the oversight and governance of state-owned enterprises, and the anti-corruption framework in line with program commitments.

“Discussions also focused on reforms aimed at improving competition and the role of the private sector in agriculture and advancing implementation of the open-access framework for the Tazama pipeline in line with the approved guidelines.

“The authorities reaffirmed their strong commitment to policies aimed at preserving macroeconomic stability and sustaining growth. Fiscal consolidation efforts are expected to continue.

“Sustaining this momentum will be key to anchoring confidence, rebuilding buffers to reduce vulnerabilities, and ensuring that the benefits of renewed stability reach all Zambians. Nigeria’s Senate Takes Bold Step to Regulate Crypto Market
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