By MAIMBOLWA MULIKELELA –
ZAMBIANS are looking forward to an increase in their purchasing power this year due to the drop in inflation.
This is according to the latest global Economic Condition survey conducted by the Association of Chartered Certified Accountants (ACCA) and Institute of Management Accountants (IMA).
The report indicates that tough conditions combined with the African continent citing declining incomes as one of their biggest concern alongside the Middle East and Latin America means the country faces a challenging year ahead.
It further indicates that 40 per cent of the respondents in Africa cited the negative impact of the exchange rate movements, which reflected the volatility of the world’s major currencies.
ACCA Zambia head Mukaba Mukaba said the Zambian economy was struggling to adjust the sharp fall in the price of its main export product.
“Inflation should slightly ease as the impact of the sharp fall in the Kwacha starts to fade, which should boost the purchasing power of consumers.
“However, any benefit will be offset by tighter fiscal policy, which is needed to bring down the budget and current account deficits to more sustainable levels,” he said.
