IMF projects Zambia’s GDP growth for 2025 at 6.6 percent

The International Monetary Fund (IMF) has named Zambia as among top 10 sub-Saharan African countries projected to have the highest Gross Domestic Product (GDP) growth rate for this year.

The fund has pegged Zambia’s projected growth rate for this year at 6.6 percent.

South Sudan had topped the list with projected GDP growth rate of 27.2 percent while Ethiopia, Benin and Rwanda closed the table at 6.5 percent each.

Real GDP growth is an important economic indicator that measures the rise in the value of goods and services produced in a country, adjusted for inflation.

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The latest World Economic Output report by the IMF showed that GDP growth in sub-Saharan Africa (SSA) was projected to increase on average.

“In sub-Saharan Africa, GDP growth is similarly projected to increase, from an estimated 3.6 percent in 2023 to 4.2 percent in 2025, as the adverse impacts of prior weather shocks abate and supply constraints gradually ease.

“Compared with that in April, the regional forecast is revised downward by 0.2 percentage points for 2024 and upward by 0.1 percentage points for 2025,” the report stated.

Such growth forecasts for 2025 were especially important in Africa, where economic development frequently dictates the rate of overall improvement across various areas.
Investors were drawn to projections of rapid GDP growth.

It indicates a robust economy with high potential returns on investment.
Strong forecasts are interpreted by both domestic and foreign investors as an invitation to engage in industries such as manufacturing, services, technology, and infrastructure.

This investment infusion had the potential to boost growth even further, starting a positive feedback loop for economic growth.

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