Zambian Economy Could Grow More Than 5% In 2009:IMF

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The International Monetary Fund in a report Wednesday said the Zambian economy showed considerable resilience in the face of the global economic crisis, and could grow more than 5% this year.

Inflation was moderating, due to softening of food prices and a limited reversal of the earlier depreciation of its currency, the Kwacha. Moreover, the lender said the revised inflation target of 12% by end-2009 was well within reach.

"While the overall performance of the economy has held up well, government revenue collections, particularly of import-related taxes, have fallen short of expectations", the IMF said.

"Looking ahead, Zambia faces a number of challenges that need to be addressed if robust economic growth is to be sustained over the medium term. Key among these is the need to increase fiscal space for infrastructure and social sector spending to support the diversification of the economy and poverty reduction, " the lender added.

(Market News Provided by RTTNews)