Zambia Consumer & Retail Report Q2 2018
The improvement in Zambia's consumer outlook will be tepid in 2018 as credit growth trickles down only slowly, and anacceleration in economic growth is held back by government intervention in the mining sector. Private consumption growth will beslower than headline growth in real terms as government borrowing crowds out the private sector. While inflation will remain undercontrol for the first part of the year, price growth will accelerate over the second half as a poor harvest unwinds the gains of recentbumper crops, and the kwacha will continue to trend weaker against the US dollar. Meanwhile, structurally high levels of poverty andunemployment will remain an anchor on consumer purchasing power for the foreseeable future.
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