Fri, 02 Dec 2016 09:47:45 +0000
ZAMBIA’s economic outlook for 2017 is expected to improve slightly following measures announced by Government, according to economist Noel Nkhoma.
Mr Nkhoma projected a little growth in the economy in the coming year although the Gross Domestic Product (GDP) would remain the same at 3.3 percent.
“I do not see much improvement looking at the projected GDP which is still showing that it will remain the same at about 3. 3 percent. That alone tells you that there will be little or no growth in the economy,” he told the Daily Nation in an interview.
He added that the economy would rebound if Government could deploy measures announced in the national Budget.
“I further see a situation where there will be serious difficulties faced by businesses due to lack of accessing capital and the ability to contain operational costs.
“So it will be a very difficult year; the minister (of Finance) outlined things that he hopes to deploy and turn round the economy but it will not be easy,” he said.
Mr Nkhoma also said Government needed to find a way of balancing between austerity measures and those which could impact on the economy to realise the projected growth.
“We have to find a balance between austerity and those measures that we think will impact on the economy for Government to realise the projected growth in employment.
“Government needs to spend but now how do you access that resource to be able to spend? The economy has to grow, it is a difficult balance. It is not only Zambia facing these difficulties, it is more or less global, all economies are experiencing difficulties,” he said.
He explained that Government was the single largest consumer of goods and services which had to spend to create a stimulus in the economy.
“If that spending will be absent then it probably means a worse outlook,” he said.
