Zambia

This paper presents Zambia’s 2025 Article IV Consultation, Fifth Review under the Extended Credit Facility Arrangement, and Financing Assurances Review. Program performance has remained broadly satisfactory. All end-December 2024 quantitative performance criteria and most indicative targets for end-March 2025 were met. Six out of fourteen structural benchmarks were met for this review, and four were completed with delays. With the effects of the historic drought receding, Zambia’s economic outlook remains positive. Real gross domestic product (GDP) growth is estimated at 4 percent in 2024, underpinned by stronger mining and services performance as electricity access was prioritized to productive sectors. Real GDP growth in 2025 is projected at 5.8 percent on the back of continued recovery in agricultural production in the wake of the drought and continued strong performance in mining and services. The authorities remain committed to maintaining macroeconomic stability, sustaining social spending, and restoring fiscal and debt sustainability, while advancing structural and governance reforms to foster growth.