Find us on Google+

Saturday, 9 June 2007

IMF-Zambia Watch

We continue to "watch" the Zambia / IMF liasons with the latest positive IMF Press Release . Here is an extract:

"The Zambian authorities are to be commended for pursuing sound macroeconomic policies that have sustained robust economic growth and achieved a marked reduction in inflation. High copper prices and extensive debt relief have helped to strengthen Zambia's external position and allow a build up of international reserves.

"Going forward, the challenge for the authorities is to consolidate macroeconomic stability and implement structural reforms to raise productivity and diversify the economy. Continued prudent fiscal policy is needed to restrain the growth of government domestic debt, while monetary policy will need to remain firm in the months ahead to keep inflation on a downward path. Better coordination between fiscal and monetary policy will help improve liquidity management.

"It will be important to press ahead with tax reform to broaden the tax base while making the tax system simpler, more efficient, and equitable. Higher levels of tax revenue will be required over the medium term to accommodate spending on infrastructure, agriculture and the social sectors as envisaged in the Fifth National Development Plan".


1 comment:

  1. "High copper prices and extensive debt relief have helped to strengthen Zambia's external position and allow a build up of international reserves."- This could help them gain financial stability in the long run. Diversifying the economic income streams and reforming taxes will result to a more equitable infrastructure in national development.

    ReplyDelete

All contributors should follow the basic principles of a productive dialogue: communicate their perspective, ask, comment, respond,and share information and knowledge, but do all this with a positive approach.

This is a friendly website. However, if you feel compelled to comment 'anonymously', you are strongly encouraged to state your location / adopt a unique nick name so that other commentators/readers do not confuse your comments with other individuals also commenting anonymously.