Zambia GDP Growth Revised to 3.8% in 2025, AfDB Projects Recovery to 5.0% in 2026 and 6.3% in 2027 as Inflation Eases to 9.3%

LUSAKA – The African Development Bank (AfDB) has presented a revised economic outlook for Zambia, projecting a moderated Gross Domestic Product (GDP) growth of 3.8% for 2025. This figure represents a significant downward adjustment from the initial estimate of 5.2%, as detailed in the latest AfDB African Economic Outlook 2026 report. The revision primarily stems from an observed underperformance across critical sectors of the Zambian economy, notably Information and Communication Technology (ICT), trade, and finance, which have not met earlier growth expectations. The AfDB's assessment highlights that while Zambia's economy continues to expand, certain engines of growth have not fired on all cylinders as anticipated. The ICT sector, often a beacon of innovation and job creation, along with the traditionally robust trade and finance sectors, have experienced headwinds that have tempered their contributions to the national output. This underperformance necessitates a recalibration of growth projections, reflecting a more cautious, albeit still positive, short-term outlook for the Southern African nation. Despite the immediate downward revision, the AfDB's report paints a more optimistic picture for the medium to long term. The institution forecasts a robust economic recovery, with GDP growth expected to rebound to 5.0% in 2026. This positive trajectory is projected to gain further momentum, accelerating to an impressive 6.3% by 2027. This anticipated resurgence is predicated on the easing of inflationary pressures, with the report indicating that inflation is set to decline to 9.3%, a crucial factor in fostering a stable economic environment conducive to investment and consumption. The projected decline in inflation to a more manageable 9.3% is a key component of the AfDB's optimistic medium-term outlook. Lower inflation typically translates to increased purchasing power for consumers and reduced operational costs for businesses, thereby stimulating economic activi