Govt advised to avoid static economic growth

Katele Kalumba

Government has been advised to balance the management of public expenditure with tight monetary policy to avoid static growth in the Zambian economy.

Former Finance Minister Katele Kalumba has observed that the monies government is releasing into the economy is not meeting the supply demand to motivate private investment.

Dr. Kalumba says government should be wary that there is so much anticipation and preparedness to invest in the economy in view of the opportunities announced in the 2017 national budget.

In an interview with QTV News, Dr. Kalumba says this also means that there has to be a balance between maintaining a low inflation rate and allowing some movement in the economy.

He states that government should thus be encouraged that if it manages well these parameters, the is optimism that the end year GDP might even be higher than the projected 3 percent.

Dr Kalumba has since predicted an increased inflow of foreign investment in the Zambian economy.