Bank of Zambia Governor Michael Gondwe says the Zambian economy will remain strong in 2014 and projected to grow above 7 percent.
Dr Gondwe also forecasts end year inflation to remain low at 6.5%.
He said the 7% growth is expected to mainly be driven by agriculture, manufacturing, construction and mining.
Dr Gondwe said manufacturing and mining sectors are expected to benefit from the increased capital imports adding that high construction activities are also expected to be sustained in 2014 mainly in roads, construction of housing estate among others.
The Bank of Zambia Governor was speaking in Siavonga Friday morning when he opened the 15th Bank of Zambia media seminar.
Dr Gondwe further said the medium to long term economic growth prospects for Zambia is high and the country is expected to continue attracting foreign direct investment inflows as it grows.
“Given the foregoing, the medium to long term economic growth prospects for Zambia remain bring. The country is expected to continue attracting Foreign Director Investment inflows as it grows. As a result of this robust economic performance and bright future prospects, the Zambian economy recently obtained a US $ 1.0 billion Eurobond, reflecting continued investor confidence in Zambia as one of the fastest growing African economies with growth projected above 7.0 percent in 2014,” Dr Gondwe said.
In the external sector, Dr Gondwe said Zambia’s total merchandise earnings have more than doubled over the last ten years, with notable surpluses recorded surpluses recorded over the last five years.
He said this was largely on account of higher growth in export earnings relative to imports.
“Total export earnings doubled over the last five years to 10.4 US$ billion in 2013 from US$ 4.5 billion in 2008,” Dr Gondwe said.
He said, “The increase was driven by a rise in earnings from both metal and non-metal exports.
Dr Gondwe revealed that metal exports rose by 76.1 percent to 7 US$ billion in 2013 from US$ 4.0 billion in 2008 due to both improved prices and an increase in export volumes.
He said Non Traditional Export earnings posted a stronger growth of 283.6 percent to US$ 3.4 billion from US$ 900 million over the same period.
Amazing well done PF
Basically this means BOZ are working in tandem with commercial banks and the fattening of their account
Means the subordinates , ie us the people might see cheaper good, prices fall, investment injections
This is what governments should be, well done BOZ on behalf of a lot of us
Thanks
I think most of this growth will also flow and result in the following:
-We will see Agriculture pick up and grow up, industrialisation and growth of tertiary industries will implode in Lusaka
– Watch out for increased labour ratio in Ndola, Lusaka and Kitwe and will almost certainly lead to increment in wages
– Pay attention to a change in pattern of employment as well, rising industrial and service sectors employment ,
-Certainty in changes of living standards
-guaranteed increment in volume of jobs
-Fiscal dividend , boost in tax revenues
-Business confidence.
I just think what we need is a listening government, and a listening government can’t be better than PF
Thanks
My brother or is it sister including your BoZ governor, you are miles away from reality.
Stop making thing up; it’s all about copper, copper & copper. If prices fall, then expect downward pressure on the GDP number. The Zambian economy can grow at 7 % annually with or without PF (remote control). Also, the infuson of the $700 million Euro Bond, will have a positive impact on the GDP (foreign currency inflow) in the short run (2014-15). In the long run, principle & interest payments for the Bond will have a negative impact on the economy, so the interesting GDP number will be 2015-16.
Useles BOZ Governor, you only declaring 7%,,,,,, Sata said 90% growth, why are hiding 83% in your pocket??
Growth figures alone are totally nothing if they do not include the poverty reduction index (PRI). Poverty reduction index is simply a measure I came up with to monitor how quick the poor are able to manage a decent lively hood. It factors in things such as inflation, increase in personal earning, affordability of decent housing , food ,health care and education.
This PRI is still under development but once completed , it will form a robust tool measure economic growth in real terms as it will measure the rate at which the poor begin to access a decent livelihood.
Under SATA and the PF the PRI is – 50(negative 50) . The implication of this is that, the rate at which the working class are getting worse off has doubled.
PRI is the best way to measure economic growth.
Total RUBBISSH from useless so-called BOZ governor. Not even worth wasting time on this crap.
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@Ndobo, does Sata know what is a % is? 90 percent is same as imagining that each round is a baby.
Mr Gondwe, you don’t grow the economy by borrowing. The $1.7billion you borrowed means you will be giving away $17 billion to whoever you borrowed from sir! You need to thinking of producing more for your and export.
Total export earnings from 2008 to 2013 doubled because of the work done by the previous government. We want figures from when PF took over and then extrapolated up to 5 years. I dread this!
In 5 years timeline, PF was nowhere in government. Mushota is the first to comment. She (HE) sleeps with hands on keyboard. No comments on Gondwe’s statement except taking Credit for good work of MMD, especially under President Mwanawasa and Rupiah Banda. Under PF the economy is on the decline and I do not envy the next President and the Government.
Mushota is part of LT in case you didn’t know. Trying to keep you entertained.
@James, with your own logic, the PF government has kept the momentum of growth and stimulated it with its long term (even at the cost of losing a few by elections) focus on infrastructure development. The benefits of such prudent foresight and investment will be reaped by the next government. It is continuity. Let us give credit where it is due. PF government is doing fine and investing in future of Zambia.
Iwe Gondwe fcuk that GDP crap!! The best gift you can give the Zambian economy is your resignation letter you incompetent piece of sh!t! Talk about how you are handling the depreciation of the kwacha which is directly affecting the citizenry not that abstract percentage growth crap, I don’t give a toss about GDP when I know there’s a whole lot of people who cannot afford even two straight meals a day! Kwacha today closed at 6.380 and pound at 10.7833, talk about how you intend ti handle that!!
@dudelove, it is easy to manipulate inflation, growth and other figures on papers, how can he manipulate exchange rate?
You speak wisely dear Sarah. The only way the exchange rate can be manipulated is through a strong financial and strategic brain which is a myth in PF and am afraid does not exist in Gondwe’s head.
Another Fossil that needs to put to pasture practicing “wishful thinking” politics! !
@Jay Jay, its either you smoke dry cow dung or you inhaled too much cow fart when you were growing up. Get a life shetani wa kantu
I will be on the ground soon to inspect those parameters. They had better be true for your own good.
“Greece’s Finance Ministry said the country raised 3 billion euros ($4.16 billion) through five-year bonds at a coupon rate of 4.75 percent. Officials had earlier anticipated the rate to be below 5 percent, well under initial estimates.”
The Fiscal revenues relative to GDP for 2013/2014 against estimated.Foreign exchange reserves relative to GDP ???
Doing some rebasing of GDP will make country to country comparatives more refined also following forth to Nigeria but not cosmetically
more like 7% growth in his pocket..another useless ***** full of talk..
2016 is upon us..the people should now know what to do..
@Wanzelu
Poverty reduction is a UN/AU national anthem.
Which country in Africa, Botswana, Asia, Europe or the Americas has managed to effectively reduce poverty? Poverty reduction is work in progress since 1600.
One wishes you had access to DSTV to expose yourself to current affairs in other parts of world like South Africa, Philippines, Bangladesh, India, Indonesia just to name a few.
You imply that poverty is fiction. It is not. Poverty is real. There’s much less of it in some countries than in others. In most cases, it is a reflection of how wealth is distributed in a particular economy. Poverty can exist in the midst of extreme wealth, e.g. in countries like Equatorial Guinea, Nigeria and S. Africa.
UNreal and all statistical blurber.Sorry but any growth not based on real production i.e. borrowed investment funds is so unreal.What about focusing on export of services such as tourism to bring in the much needed forex?Agriculture is of course important but our relaying on mining copper is worrying and surely after half a centuary of political independence we should learn our lesson.
Interesting that you guys are all economists! God bless Zambia with sensible people. Zambia is rich enough and only need a president and Ministers with developmental mind who can take unpopular decisions to Modernize our country and not just pleasing people with meal meal coupon type of policies. There is more to life that ubunga
Chileya, have you also seen the quack economists speaking against borrowing for inrastructure and manufacturing industries. These are econimists with a poverty mentality. The rich leverage debt to create more wealth. The biggedt economy on this globe, the USA is also the most indebted. Bwana Gondwe keep working, even the Rand today stands at R12 to a bullish Us$.
This country is making progress whether the critics like it or not.
I am liking the value of the Kwacha. It is good for exporters. Basically, export or die!!!
Coming from Gondwe I will take this with a pinch of salt
Kwena nomba elyo tukwete ifikopo muba sambilila eee?
In grade 7 we learned that Inflation is lots of money chasing few goods.PF has fulfilled campaign promises of more money in your pockets.
People have forgotten this economic fact heheheh