- Despite the recent growth, Zambia still faces several economic challenges, including significant levels of poverty, income inequality, and reliance on copper exports
- The economy recovered moderately in 2021, buoyed by copper price recovery, improvements in energy supply, and increased agricultural output
- However, the recovery was uneven, with sectors heavily dependent on imports or domestic demand lagging behind
- External debt remains high, and servicing it absorbs a large share of government revenue
- Although Zambia's fiscal and external positions have improved in recent years, debt remains at high risk of distress
- Inflation has been elevated, although it has recently started decelerating
- With credible policies, strong governance, and sustained structural reforms, Zambia can achieve higher and more inclusive economic growth
