Zambia has trimmed its growth forecasts for the next two years due to the economic threat of El Niño and the prolonged impact of the Iran war. The economy is now expected to expand by 4.9% in 2027 and 5% the following year, down from previous forecasts of 6% for next year and 7.5% for 2028. Finance Minister Situmbeko Musokotwane cited the weather event's impact on agriculture and hydropower, though the nation has added solar capacity and strategic corn stocks.
The government also faces downgrades due to the Iran war's effect on fuel prices. Zambia has reached a staff-level agreement with the IMF for a new program aiming to unlock a $1.5 billion tranche by December, pending executive board approval.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing