By JUDITH NAMUTOWE –

ZAMBIA’s Chief Financial Officers (CFOs) have predicted an increase in the country’s Gross Domestic Product (GDP) by 5.9 per cent in 2017.

The financial officers said the country’s growth expectations were more optimistic due to improving governance and democratic processes.

According to the Zambia CFO R

eport for 2016, launched in Lusaka at the weekend, Zambia’s Growth Domestic Product (GDP) would grow by 4.6 per cent for 2015, 5.4 per cent and 5.9 per cent for 2016 and 2017 respectively.

The report made a comparison with the Southern African region whose GDP was predicted at 3.9 per cent in 2015, 4.1 per cent in 2016 and 5.0 per cent in 2017.

“Zambia’s more positive outlook is most likely underpinned by the country’s improving governance and democratic processes as well as its status, as a peaceful and stable country,” read the report in part.

The report states that the Southern African region growth of -5.8 per cent in 2016, -4.1 in 2017 was due to the pressure placed by the regional currencies which anticipated rate hike in the United States (US).

The report however, indicated that while the CFOs in the Southern African region expected a depreciation of -5.8 per cent for 2016 and -0.1 per cent for 2017, Zambian CFOs were more optimistic, expecting -4.35 depreciation in 2016 and -0.4 per cent in 2017.

The anticipated rate hike in the US was placing pressure on currencies worldwide.

This is reflected in the CFOs responses which show the expected downward pressure on their currencies with a region-wide decrease of more than eight per cent in the last six months of 2015.