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Title Zambia : 2013 Article IV consultation
Published Washington, D.C. : International Monetary Fund, [2014]
©2014
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Description 1 online resource (86 pages) : color illustrations
Series IMF country report ; no. 14/5
IMF country report ; no. 14/5
Contents Cover; CONTENTS; DECADE OF PROGRESS BUT THE ECONOMY AT A CROSSROADS; BOXES; 1. Subsidy Reform; POLICIES GOING FORWARD; A. Fiscal Policy: Close the Financing Gaps and Realign Priorities; 2. Pension Reform; B. PFM: Step up Reforms to Support Fiscal Consolidation; C. Improve Investment Planning and Maintain Debt Sustainability; D. Monetary Policy: Ensure Flexibility to Maintain Macroeconomic Stability; E. Financial Sector: Address Structural Constraints; F. Boosting Competitiveness and Inclusive Growth; G. Strengthening Statistics; STAFF APPRAISAL; TABLES
1. Selected Economic Indicators, 2011-182. Fiscal Operations of the Central Government, 2011-18 (Millions of Kwacha); 3. Fiscal Operations of the Central Government, 2011-18 (Percent of GDP); 4. Monetary Account, 2011-18; 5. Balance of Payments, 2011-18; 6. Financial Soundness Indicators, 2007-13; 7. Millennium Development Goals, 2002-10; FIGURES; 1. Real Sector Developments; 2. Fiscal Developments; 3. External Developments; 4. Banking Sector Developments; APPENDICES; I. Competitiveness; II. Risk Assessment Matrix; III. A Regional Comparison of Government Wage Spending
IV. External Stability AssessmentV. Lending Rate Ceilings and Their Impact on the Nonbanking Sector; CONTENTS; RELATIONS WITH THE FUND; JOINT WORLD BANK-FUND WORK PROGRAM, 2013-14; STATISTICAL ISSUES
Summary "Context. The Zambian economy has performed well in recent years, with strong growth and modest inflation, and has high growth potential. The government has resolved to step up development by scaling up investment in infrastructure. However, this year has seen a significant loosening of fiscal policy, leading to a large fiscal deficit. Outlook and risks. Assuming front-loaded fiscal adjustment toward a sustainable deficit, growth is projected to remain strong at 7-8 percent and inflation to decline gradually to 5 percent over the medium term. Key risks to the outlook are the uncertainties about fiscal policy and the broader business environment, and a possible slowdown in emerging markets and its impact on copper prices. Fiscal stance. The current fiscal stance is unsustainable. To improve Zambia's fiscal position, fundamental reforms are required to contain the wage bill and recurrent expenditures, boost domestic revenue, and create fiscal space for infrastructure investment. Staff recommended reducing deficits to 5 percent of GDP in 2014 and gradually to 3 percent over the medium term, and bringing down net domestic financing to 1 1/2-2 percent of GDP to avoid crowding out the private sector. Public financial management (PFM). To support fiscal consolidation, PFM reform needs to be stepped up. Investment planning and implementation also need to be strengthened to support planned scaling up of capital expenditures, and debt management strengthened in light of the increasing reliance on non-concessional financing. Monetary policy. Given the low level of international reserves, the Bank of Zambia (BOZ) should allow more exchange rate flexibility and continue to build up reserves in line with their medium-term target. BOZ also needs to continue to tighten monetary policy to contain inflation. Competitiveness. Over the last decade, Zambia's competitiveness has been boosted by strengthened macroeconomic fundamentals and a favorable business environment. However, a series of recent regulations have raised questions about the policy direction, and high minimum wages could hamper the country's competitiveness, job creation, and economic diversification"--Abstract
Notes "January 2014."
"November 26, 2013"--Page 2 of pdf
Title from PDF title page (IMF Web site, viewed Jan. 13, 2014)
Subject International Monetary Fund -- Zambia.
Economic development -- Zambia.
Economic indicators -- Zambia.
Financial institutions -- Zambia.
Fiscal policy -- Zambia.
Monetary policy -- Zambia.
Form Electronic book
Author International Monetary Fund.
ISBN 1484340930 (e-book)
9781484340936 (e-book)
Other Titles Title from p. 2 of pdf: Zambia, staff report for the 2013 Article IV consultation