Zambia’s economy is showing strong signs of recovery, backed by fiscal discipline, debt restructuring, and improved investor confidence, according to the Ministry of Finance.
Speaking at the Town Hall Forum on the First Half of 2025 Budget Performance and Economic Developments, Secretary to the Treasury, Felix Nkulukusa, revealed that the country’s Gross Domestic Product (GDP) grew by 4.5% in the first quarter of 2025, up from 2.2% during the same period last year.
Mr. Nkulukusa also noted a steady decline in inflation, which dropped from 16.8% in February to 14.1% by June 2025.
He said that additionally, the Zambian Kwacha has appreciated by 19% against the US dollar, making it the second-best performing currency globally, behind Ghana’s cedi.
Mr. Nkulukusa said that Zambia’s gross international reserves rose to $4.5 billion by the end of March, covering 4.6 months of import needs, boosted largely by foreign exchange inflows from the mining sector and donor-funded projects.
Despite these positive developments, Mr. Nkulukusa cautioned that spending pressures from fuel subsidies, agriculture support, and social protection programs continue to pose fiscal risks that government is working to manage.
By Margaret Mwanza
