Growth forecasts lowered

Weaker copper prices and demand has lowered growth forecasts in Zambia, the London-based Economist Intelligence Unit (EIU) said in its latest update on Wednesday. "We (the EIU) have lowered our forecast of real GDP (gross domestic product) growth in 2002 to 4.3 percent despite increased mining output, because of weak copper demand and output," said the EIU. "The rate of real GDP growth is forecast to pick up to 4.6 percent in 2003." It added that food prices had already started to rise and are expected to increased further because of the poor maize harvest in 2000/01. According to the EIU Zambia's external debt is expected to rise to about US $5.96 billion in 2002 and US $6 billion in 2003. "Despite debt relief under the heavily indebted poor countries initiative, the debt-servicing ratio will remain high at 36.4 percent in 2002 and 37.1 percent in 2003, as Zambia will be repaying a recent IMF (International Monetary Fund) loan. The unit said that the Zambian currency - the Kwacha - was expected to continue depreciating, "partly to maintain Zambia's export competitiveness and partly reflecting importers' demand for US dollars".