Zambia: Second Review Under the Arrangement Under the Extended Credit Facility, Requests for a Waiver of Nonobservance of a Quantitative Performance Criterion, Modifications of the Monetary Policy Consultation Clause and of Quantitative Performance Cr

Despite considerable challenges, the Zambian economy is showing resilience driven by non-mining and non-agricultural growth. The government continues to work with its external creditors to restructure its debt in line with program parameters. External and domestic conditions have put pressure on the external balance and the exchange rate, raising inflation. Fiscal consolidation will remain a pivotal focus to restore debt sustainability. Concurrently, economic policies will be directed toward increasing and safeguarding essential social spending, preserving financial stability, and intensifying structural and governance reforms to unlock Zambia's growth potential.