Zambia’s economy exceeded expectations last year, outperforming growth projections from both the government and the International Monetary Fund (IMF), thanks to a significant surge in Q4 output.
Preliminary data indicates that the country's gross domestic product (GDP) grew by 4% in 2023, down from 5.4% recorded last year, acting statistician-general Sheila Mudenda stated on Thursday.
This growth significantly surpassed the IMF’s forecast of 1.2% and the estimates provided by President Hakainde Hichilema’s administration, according to a Bloomberg report.
In the final quarter of the year, the economy expanded by an impressive 8.6%, marking the fastest growth rate in over a decade.
The economic surge was driven by a strong rebound in the agricultural sector following Zambia’s worst drought in over a century, along with solid growth in the mining industry.
As Africa’s second-largest copper producer, Zambia experienced a notable increase in metal production last year, further highlighting its reliance on copper, which contributes over 70% of the country’s export earnings.
Total copper production, including output from small-scale miners, exceeded 820,000 tons in 2023, Mines and Minerals Development Minister Paul Kabuswe said in January.
Furthermore, the agricultural sector experienced a remarkable recovery, growing by 27.6% in the fourth quarter after shrinking by 17.3% in the previous three months. Similarly, the mining sector saw a significant surge, expanding by 26.8%, a sharp increase from just 3% in the prior quarter.
In addition, for the first time in over a year, Zambia's inflation rate has fallen, providing much-needed economic relief, Business Insider Africa reports.
The decline was largely driven by lower prices of essential food items like bread and cereals, as increased rainfall helped mitigate the impact of the country's worst drought in nearly a century.
In March, food price inflation eased to 18.9%, down from 20.6% in the previous month, reflecting a notable improvement in the cost of living.