GDP rebasing to give clearer picture of Zambia’s economy

By BUUMBA CHIMBULU

ZAMBIA’S ongoing Gross Domestic Product (GDP) rebasing exercise is expected to provide a more accurate picture of the country’s economy, strengthen evidence-based policymaking and boost investor confidence once completed, Zambia Statistics Agency (ZamStats) Statistician General Sheila Mudenda has said.

Ms Mudenda said the exercise would update the country’s economic statistics to reflect structural changes that have taken place over the past 15 years.

She was speaking during a GDP Rebasing Information, Education and Communication Forum held on the sidelines of the 60th Zambia International Trade Fair in Ndola.

Held under the theme “GDP Rebasing Exercise: Why It Matters and Its Implications for Zambia,” the forum brought together government officials, the Bank of Zambia, development partners, the private sector, academia and the media.

Ms Mudenda said GDP remains the most widely used measure of a country’s economic performance and is critical for national budgeting, fiscal and monetary policy formulation, debt sustainability analysis, investment promotion and development planning.

She said the country’s current GDP estimates are based on 2010 data, which no longer adequately reflects its evolving economic structure.

“The economy has undergone significant transformation since 2010, with notable growth in mining, construction, financial services, information and communication technology, the digital economy and increased private sector activity,” she said.

Ms Mudenda said ZamStats had selected 2023 as the new base year because it represents a relatively normal economic period and provides comprehensive benchmark data required for compiling national accounts.

Earlier, Ministry of Finance and National Planning Director of Human Resource and Administration Nalituba Mwale described the rebasing exercise as a critical step towards ensuring the country’s economic statistics accurately reflect the realities of a modern and evolving economy.

Ms Mwale said rapid expansion in sectors such as mining, information and communication technology, financial services, tourism, construction, logistics and renewable energy had made it necessary to update the country’s statistical benchmarks.

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