LUSAKA, Aug. 7 (Xinhua) -- The Zambian government has welcomed an International Monetary Fund (IMF) report that says the country's public debt-to-gross domestic product (GDP) ratio is projected to fall below 100 percent, the first time in seven years.
Minister of Finance and National Planning Situmbeko Musokotwane said the report's findings reaffirm the government's commitment to its ongoing economic reform program.
"Numbers don't lie. Our prudent economic management and debt restructuring efforts are beginning to bear fruit. The difference is evident," he said in a statement on Wednesday.
The lower debt-to-GDP ratio signals greater investor confidence in Zambia's market and economy, a development that is expected to generate more jobs, drive development, and increase national wealth, the minister said.
The declining debt ratio is a critical indicator of macroeconomic stability, showing the economy is growing faster than its debt obligations, thereby reducing the risk of debt distress, he said.
Lower public debt levels will free up fiscal space, allowing the government to increase investment in infrastructure, health, education, and social protection rather than allocating a large share of revenues to debt servicing, the minister said.
The decline will improve Zambia's creditworthiness, reduce borrowing costs, and strengthen the country's standing with international financial institutions, development partners, and investors, Musokotwane said.
The IMF report projects Zambia's public debt-to-GDP ratio to drop to about 91.1 percent by December 2025, the first time in over seven years that the ratio falls below the 100 percent threshold.
The report also forecasts a continued downward trend, with the debt ratio expected to reach 69.4 percent by 2027. ■
