Zambia’s Economy Grows Three Times Faster Than IMF Projections

Zambia’s economy significantly outpaced forecasts in 2023, driven by a sharp fourth-quarter surge. Preliminary data shows GDP expanded by 4 percent, down from 5.4 percent in 2022, but well above the IMF’s 1.2 percent projection and government estimates, according to Statistician-General Sheila Mudenda.

Growth accelerated to 8.6 percent in the final quarter – the fastest pace in over a decade – fueled by a strong recovery in agriculture and robust mining performance. The agricultural sector rebounded with a 27.6 percent increase in output after a 17.3 percent contraction the previous quarter.

Meanwhile, mining grew by 26.8 percent, up from 3 percent.

As Africa’s second-largest copper producer, Zambia saw total copper output surpass 820,000 tons in 2023, reinforcing its reliance on the metal, which generates over 70 percent of export earnings, Mines Minister Paul Kabuswe announced.

For the first time in over a year, inflation eased, bringing economic relief. Food price inflation fell to 18.9 percent in March from 20.6 percent in February, aided by increased rainfall that mitigated the impact of a historic drought.