World Bank says Zambia’s economic growth will fall to below 4% as inflation sours

Zambia’s economic growth will fall below 4 percent in 2016 due to domestic challenges and one or two international pressures but will pick up in subsequent years, the World Bank said on Thursday.

Meanwhile, Zambia’s inflation rose sharply to 19.5 percent year-on-year in November from 14.3 percent in October, the Central Statistical Office said on Thursday.

“The increase in the annual rate of inflation was attributed to both food and non-food items,” the agency said in a statement.

On economic slowdown in 2016, World Bank senior economist Gregory Smith said at a media briefing that, “we expect growth to fall below 4 percent in 2016 and an improvement in growth in 2017 and 2018,”

Severe electricity shortages, uncontrolled, wasteful expenditure by government, a plunge in global copper prices to record lows and a faltering currency have hurt Zambia’s economy.

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