Zambia cuts 2014 budget deficit forecast to 5.2 pct of GDP

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Zambia has cut its 2014 budget deficit forecast to 5.2 percent of GDP, from 6.6 percent projected previously, due mainly to the rebasing of its economy in February, the treasury said on Friday.
"After rebasing the GDP it has now reduced to 5.2 percent. It would have been 6.2 percent in the old GDP," the Secretary to the Treasury Fredson Yamba said, adding that spending cuts had also influenced the deficit forecast shift.
"These measures are not one-off but will continue over the medium to long-term, leading to fiscal consolidation and fiscal prudence," Yamba added.
Yamba said the treasury would maintain its year-end inflation target of 6.5 percent, despite the kwacha currency plunging to its weakest level on record against the U.S. dollar this year, which had threatened to push up prices.
Zambia's economy was projected to grow around 6.5 percent this year, driven by agriculture, mining, manufacturing, construction and energy sectors, he said.
Between 2015-2017, economic growth will average around 8 percent, he said.
The IMF said on Friday that Zambia's economy continued to grow at a rapid pace but fiscal and exchange rate fluctuations were a risk to economic development