By JUDITH NAMUTOWE –

. Nkhoma

A LOCAL economist, Noel Nkhoma has attributed Zambia’s failure to meet most of the key economic fundamentals in 2015 to the global economic trends.
Mr Nkhoma said the economic challenges the country faced in 2015 impacted negatively on key economic fundamentals.
He said most hiccups emanated from low global commodity prices which saw a reduction in foreign exchange (forex) flows into the country due to the lower value of imported copper, Zambia’s major forex earner.
This affected some of the economic fundamentals such as the gross domestic product (GDP) growth rate, inflation target, lending interest and trade balance.
The situation also led to the high depreciation of the Kwacha against major convertible currencies, especially the strengthening United States (US) dollar.
This eroded the purchasing power of the Zambian consumers against the skyrocketing prices of goods and services.
Mr Nkhoma said as a result, there were job losses in the mining industry which were compounded by the energy crisis.
“The country faced a lot of challenges as a result of low commodity prices. This saw a reduction in foreign exchange flows into the country.
“We also saw the capacity for Government to mobilise resources constrained,” Mr Nkhoma said.
He said the Government’s austerity measures had not been felt yet, which could imply that Government spending had not reduced.
Mr Nkhoma urged the Government to consider addressing issues of expenditure in 2016 for the benefit of ordinary Zambians.
He said President Edgar Lungu had made commitment towards addressing challenges the country was faced with, hence the need for the Government to adhere to those pronouncements.