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"The budget deficit is expected to widen to 5.1 percent of output next year from 3.5 percent this year -- wider than a government forecast of 4.3 perce..."
Zambia's economy should grow at a pacy 6.9 percent next year due to a strong maize harvest, healthy copper exports and a step-up in infrastructure investment from the new administration of President Michael Sata, a Reuters poll showed on Tuesday.
Sata's September election upset in Africa's biggest copper producer caused a few investor jitters, not least among the Chinese mining companies that he frequently accused of skirting labour laws and short-changing the taxman.
However, the poll of 10 analysts showed the growth outlook for this year was 6.8 percent - unchanged from last quarter's survey.
"Zambia's high-grade copper deposits, strong private investment and emerging agricultural exports should help underpin strong growth," said Gregan Anderson, economist at London-based consultancy Business Monitor International.
Inflation is seen remaining in single digits, helped mainly by strong harvests keeping a lid on the price of maize, the southern African nation's staple food.
The poll showed that inflation was expected to average 9 percent this year before slowing to 7.9 percent next year.
"Food accounts for 50 percent of the consumer basket and projections are that continued increases in the maize harvest should have a positive effect on CPI, keeping it within single digits," said Fred Mulenga of Zanaco, a government-owned bank.
The budget deficit is expected to widen to 5.1 percent of output next year from 3.5 percent this year -- wider than a government forecast of 4.3 percent for 2012 outlined in this month's budget.
"The fiscal deficit is projected to increase as the government increases spending on new infrastructure projects," Mulenga said.
Finance minister Alexander Chikwanda unveiled an expansive 2012 budget on Nov. 11, with big increases in social spending and farming subsidies to be paid for by a rise in mineral royalties and a debut $500 million Eurobond.
Mining companies have expressed deep reservations about the doubling of copper ore royalties to 6 percent, although the World Bank said the hikes would not affect the industry at the current level of copper prices.-businesslive
Sata's September election upset in Africa's biggest copper producer caused a few investor jitters, not least among the Chinese mining companies that he frequently accused of skirting labour laws and short-changing the taxman.
However, the poll of 10 analysts showed the growth outlook for this year was 6.8 percent - unchanged from last quarter's survey.
"Zambia's high-grade copper deposits, strong private investment and emerging agricultural exports should help underpin strong growth," said Gregan Anderson, economist at London-based consultancy Business Monitor International.
Inflation is seen remaining in single digits, helped mainly by strong harvests keeping a lid on the price of maize, the southern African nation's staple food.
The poll showed that inflation was expected to average 9 percent this year before slowing to 7.9 percent next year.
"Food accounts for 50 percent of the consumer basket and projections are that continued increases in the maize harvest should have a positive effect on CPI, keeping it within single digits," said Fred Mulenga of Zanaco, a government-owned bank.
The budget deficit is expected to widen to 5.1 percent of output next year from 3.5 percent this year -- wider than a government forecast of 4.3 percent for 2012 outlined in this month's budget.
"The fiscal deficit is projected to increase as the government increases spending on new infrastructure projects," Mulenga said.
Finance minister Alexander Chikwanda unveiled an expansive 2012 budget on Nov. 11, with big increases in social spending and farming subsidies to be paid for by a rise in mineral royalties and a debut $500 million Eurobond.
Mining companies have expressed deep reservations about the doubling of copper ore royalties to 6 percent, although the World Bank said the hikes would not affect the industry at the current level of copper prices.-businesslive
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