Zambia’s economy is expected to expand by 5.2% in 2025, surpassing the projected 4.1% average growth rate for most African countries, according to the latest outlook from the International Monetary Fund (IMF). The Fund attributes Zambia’s strong performance to easing inflation, improved liquidity conditions, renewed investor confidence, ongoing governance and fiscal reforms, and rising private sector participation.
IMF Resident Representative Eric Lautier explained that the initial projection of 5.8% was revised slightly downward due to challenges in the energy sector, which have constrained production capacity. Despite this setback, Lautier stressed during the presentation of the IMF’s Economic Outlook for African Countries on Thursday that Zambia remains on a firm and promising growth path compared to its regional peers.
He also announced that Zambia has successfully completed 94% of its external debt restructuring, marking a major milestone that is expected to ease the country’s debt burden and strengthen long-term economic resilience.
