An official with the International Monetary Fund (IMF) has predicted that economic growth in Zambia would be stronger in 2006 after the country came out of the downturn thanks to the just-ended oil crisis and the drought that would come to an end soon.

"With a return to normal weather conditions and stable oil prices and fuel supplies, economic growth is expected to be considerably stronger in 2006," Joseph Kakoza, IMF resident representative in Zambia was quoted by local newspaper The Post in Lusaka as saying.

"The outlook for the economy is favorable," he added.

"Zambia's external position was strengthened by the surge in world copper prices, which allowed for a continued increase in official external reserves, despite the higher import bill for petroleum products," Kakoza said.

He, however, stressed the need for Zambia to consolidate its fiscal discipline, especially in the run-up to next year's general elections.

IMF sent a mission to Zambia last month to hold talks with the government on Zambia's three-year program supported by the Poverty Reduction Growth Facility, which the Fund's board approved in 2004.

Kakoza said the mission was satisfied with the country's progress so far although production hitches had dampened the mining sector's performance while drought hindered agriculture.

Zambia's main economic challenges was to seize the opportunities provided by debt relief and the prospect for rising external assistance to build upon the marked improvement in economic performance in recent years, he said.

"This will require consolidating macroeconomic stability and fostering the private sector development necessary to achieve the sustained high rates of economic growth needed to substantially reduce poverty," according to Kakoza.

He called for stronger external assistance to the country, which he said would markedly quicken progress toward the attainment of the Millennium Development Goals.

Source: Xinhua