IT’S NOT SHOWING
…Stable economy claims and reality not matching – CSPR
By Tony Nkhoma
IT IS contradictory for the government to say the economy is stable when citizens’ incomes fall short of meeting prices of essential commodities, the Civil Society for Poverty Reduction (CSPR) has said.
CSPR executive director Isabel Mukelabai said in the current trajectory, it was unlikely that Zambia would attain reduction of poverty to the planned target of 40 per cent by the year end 2026, which marked the completion year of the 8th National Development Plan (8NDP).
“Incomes for most citizens have remained stagnant, while prices for basic commodities and services continue to outpace earnings, leaving households with limited purchasing power,” Mukelabai said.
She said the disconnection between an improving economy and a rising poverty status was informed by a compound of factors.
In an interview with The Mast, Mukelabai said while the country was achieving some economic stability at the macro level, immediate impacts to household welfare had not yet been felt substantially.
“CSPR has taken note of ongoing public concern regarding the contradiction between the government’s claim that the economy is stable and the reality that citizens’ incomes continue to fall short of meeting the cost of esential commodities,” Mukelabai said.
She however said CSPR acknowledged that there had been measurable progress in macroeconomic management.
“Key indicators such as gross domestic product (GDP growth, reduced inflation, and a stabilised exchange rate confirm that Zambia’s economy is on a positive trajectory. The medium-term outlook is broadly positive, with signs of recovery from past fiscal stress and improved debt management,” Mukelabai said.
She said the gains were important in restoring investor confidence and anchoring macroeconomic stability.
Mukelabai said it was important, however, to note that poverty reduction efforts are a result of consistent, compound policy measures that can be long term.
She said there should be some short term and intermediate term relief options for citizens as they navigated complex ripple down effects of economic growth.
