The government managed to contain inflation to less than 10%, but the stocks of external debts continued to increase, while the country, which had defaulted on the repayment of three eurobonds at the end of 2020, negotiates a restructuring plan with its creditors.
Zambia’s GDP grew by 3.1% in 2022, compared to 3.6% in 2021, Zambian Finance Minister Situmbeko Musokotwane announced on Friday (January 13th).
Situmbeko Musokotwane also indicated that the government succeeded in containing inflation to 9.9% in December 2022, against 16.4% in December 2021, indicating that the objective targeted by the authorities in the medium term remains the reduction of the inflation rate at a range between 6% and 8%.
He also revealed that the country’s external debt increased to $13.36 billion at the end of September 2022, from $13.04 billion as of December 31, 2021.
Zambia’s economy had grown by 3.6% in 2021, following a 2.8% contraction in 2020, when Zambia became the first African country to default on its external debt during the Covid-19 pandemic.
Lusaka is in the midst of negotiations with its bilateral and private creditors on the restructuring and cancellation of part of its debt, which represents 120% of GDP and a third of which is owed to China.