Ten key points from minister of Finance’s state of the economy statement

Ten key points from minister of Finance’s state of the economy statement

Compiled By: B. Kafwanka

1.External debt increased from $10.23 in June, 2019 to $11.2bn at the end of December, 2019

2.Domestic debt increased from K60.3bn in June, 2019 to K80.2bn at the end of December, 2019

3.Domestic arrears increased from K20.2bn at the end of June 2019 to K26.2bn at the end of December, 2019

4.Inflation rose from 7.9% at the end of December, 2018 to 11.7% at the end of December, 2019

5.Monetary policy rate was adjusted upwards from 10.25% to 11.5%. Statutory Reserve ratio was adjusted upwards from 5% to 9% at the end of December, 2019

6.Commercial bank average lending rates rose from 25.4% to 28% in December, 2019

7.The Kwacha averaged K13.86 per US Dollar in the last quarter of 2019 from 11.9% at the end of December, 2018

8. Gross international reserves increased from $1.41bn at the end of June, 2019 to $1.45bn at the end of December, 2019

9.Economic growth in 2020 is expected to be above 3%.

10.Government had formal meetings with the IMF in the last quarter of 2019. Government will continue addressing some of the issues raised by the IMF around debt sustainability and continue implementing austerity measures hoping to clinch a deal.

Detailed analysis will follow later.

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