The Bretton Woods institution, International Monetary Fund lauded Zambia for the USD 5.5 billion budget for the fiscal year 2012 with a caution to monitor borrowing to avoid suffocating the gains of the just ending year.
According to the IMF, Zambia’s 2012 budget of ZMK 27 trillion was feasible and needed support from all well meaning partners to the Southern African country adding that the outlay is appositive start for the new government and reiterated its continued support towards the country’s efforts in implementing its development programs.
According the Zambia’s IMF resident representative Perry Perone, the modality of the IMF support to the country was the government’s decision but the global fund stands set to assist the government to implement its economic agenda next in 2012.
According to the 2012, it targets an increase in government borrowing to finance economic development but that the IMF observed that borrowing could be financed in a manner that was consistent with the macroeconomic stability given that public debt was currently at relatively low levels.
He said that “The prospects for continued economic growth in 2012 were bright, provided that the ongoing problems in Europe did not persist to worsen and impact on growth in Asian emerging market economies from where much of the demand for Zambian goods originates. The 2012 Budget was a good start for the new Government. The Budget targets an increase in Government borrowing to finance the Government’s economic development agenda but the borrowing can be financed in a manner that is consistent with macro-economic stability given that public debt is currently at relatively low levels.”
The modality of IMF support to Zambia is the Government’s decision but on its part, the IMF said and that the Bretton Wood institutions stands ready to work with the new Government to help implement its economic agenda.
The economic performance in 2011 had been good noting that inflation remained in single digits although it was likely that the end year target of seven per cent would not be met.
The economic performance has been good in 2011. Overall economic growth was likely to have been strong although, as the Living Conditions Monitoring Survey 2010 survey has revealed that the level of absolute poverty is still very high.
(Filed by SteelGuru Correspondent Zambia)
