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Green Party ties kwacha gain to shrinking economy

THE kwacha’s stability at K9 per US dollar is more to do with the sharp shrinking of the economy than the Bank of Zambia’s monetary and currency policy interventions, says Green Party president Peter Sinkamba.

 

In a statement, Sinkamba stated that Zambia’s Gross Domestic Product (GDP) shrunk by about US$9 billion in three years from US$28.05 billion in 2013 to US$19.55 billion in 2016.

 

In a statement, Sinkamba stated that Zambia’s Gross Domestic Product (GDP) shrunk by about US$9 billion in three years from US$28.05 billion in 2013 to US$19.55 billion in 2016.

 

It is projected to even shrink further to US$17 billion in 2017 due to diminishing economic opportunities and the recently declared state of threatened emergency. Business opportunities, especially for SMEs have sharply diminished. Disposal income for workers is sharply diminishing by the day. This is clearly evident from empty banking halls, traditional shopping centres and poor patronage in clubs, bars and restaurants. Workers are now foregoing decent lunch for nsolo and groundnuts,

Sinkamba stated.

 

He stated that the Green Party was extremely alarmed by the development and that at this rate, Zambia would soon get into a default mode for external debt repayments just like was the case with the domestic debt.

 

Sinkamba stated that President Edgar Lungu’s government must consider abandoning the monster called “state of threatened emergency” because it would worsen the already bad state of the economy.

 

Not long from now, the economy will surely slip into Intensive Care Unit (ICU) mode. Felix Mutati, the Minister of Finance, should consider abandoning the so-called ‘Zambia-Plus’ economic model because the model is proving more of rhetoric and a misadventure. It has failed to kick-start an iota of economic opportunities and activities almost one year on,

stated Sinkamba.

 

The Kwacha has appreciated against the US dollar to trade at around K8.90 from over K9.

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