Zambia Merchandise Exports (ann. var. %)

Merchandise Exports in Zambia

Available data suggests that the economy gathered some steam at the outset of the year. The private-sector PMI rebounded in January–February from Q4’s slump. That said, it fell into contractionary terrain in March, weighed on by a weaker kwanza and February’s interest rate hike. Momentum seemingly remained subdued in April, as the PMI continued to point to weaker business activity, while inflation climbed back into double-digit territory after 11 months, likely denting private spending. Going forward, May’s rate hike is set to hamper the economy further. In other news, in late April, the country submitted a debt restructuring proposal to official creditors; reaching an agreement is crucial for the disbursement of USD 188 million of IMF funding. Talks are ongoing, and the IMF expects that a deal will be reached soon.