1. MARCH 20, 2015 BANK OF ZAMBIA GOVERNOR’S MEDIA BRIEF

2. Introduction Fiscal Policy and the Government Budget Monetary Policy REAL GDP GROWTH (Employment, Income growth and Poverty reduction) External Sector Policy

3. Growth and the Real Economy...Real growth (based on revised GDP) has been strong, broad based, and Zambia has outperformed its peers

4.  However, it is clear to all of us that growth we have witnessed has not been shared by all. Small scale entrepreneurs have had particular challenges in growing and creating employment – with issues of infrastructure such as power and roads as well as access to finance being key constraints.  The efforts of the Government to investment in infrastructure, as well as other important sector such as health and education should be understood in this light.  However, this important investment has its own consequences as we have seen higher budget deficits and an increase demand for domestic and foreign resources to finance this.  The challenge we face is therefore in getting the right balance between long term investment needs which are critical in addressing poverty and maintain macroeconomic stability.

5. Monetary Policy, Inflation, Interest Rates and Credit Growth

9. External Sector Developments, Balance of Payments and the Exchange Rate