0.7 Percent Growth Is Insufficient – Hambaye

Economist Trevor Hambaye has outlined that a Gross Domestic Product (GDP) increase of only 0.7 percent is insufficient to drive the Zambian economy in its current fragile state.

Speaking during an interview on Wednesday, Mr Hambaye demonstrated his concern over the state of the economy, especially relating to the Economic Recovery Plan (ERP) which the government has not been able to fully implement.

“None of these ERP measures that were announced have been fully implemented, and we continue to see all the metrics that lead to economic recovery are still negative,” he said.

Although the economist acknowledged that the 0.7% GDP growth was somewhat positive, he added that it was insufficient for a full recovery for the country’s economy, considering the vast decline of the economy over recent years.

“This [0.7% GDP increase] is insufficient to be able to drive an economy…it shows that this growth is being driven by foreign direct investors,” Mr Hambaye added, acknowledging the lack of effort which the government has put in to increase GDP.

“With the increased high cost of living, and the increased inflation, it is going to reduce the purchasing power of an ordinary person. When you reduce that purchasing power, you mean you are reducing the amount of food that is going to be on the table because they have to cut their budget,” he said to close the interview.

Photo: Bloomberg