By James Nyirenda
The Economic Association of Zambia EAZ president Dr. Lubinda Habazoka has said rebasing of the Gross Domestic Product (GDP) will give the true reflection of the economy and improve the sectors that have come up which are yet to accounted.
Speaking in an interview monitored by ZBT, Dr. Habazoka added that the country will highly benefit from the exercise through awareness and computing ratios of certain sectors contribution to the GDP.
“For example if you want to find out how the economy is growing, with the rebased GDP you are able to get the accurate economic stance, because if an investor only invest in economy of a certain size now it means that Zambia is going to loose out if it does not calculate its GDP correctly.
So with rebasing Zambia is going to benefit,” he said.
He further said GDP rebasing is an internationally accepted practice and most countries conduct the exercise every after five years.
“At the moment I do not see any challenge would come as a result of this exercise, but I think it is just one of those important exercise unfortunately people do not understand.
They should do more research about GDP rebasing to be able to understand and appreciate the process,” he cited.
Government will undertake an exercise to rebase the Gross Domestic Product, an exercise last conducted in 2012.
The rebasing of the Gross Domestic Product will provide reliable and updated information on the current size and structure of the national economy.
The rebasing will also provide Government with an opportunity to update and develop appropriate social and economic indicators to measure progress in achieving the objectives under the National Development Plans and the Sustainable Development Goals.
Central Statistics Office – CSO projected a cost of about US$5 million required to conduct some tailor made surveys and other statistical requirements to conform to the internationally accepted norms and procedures needed to rebase.
The GDP for Zambia is highly expected to grow in the range of 20 to 30% as the economy has expanded from the last time the GDP was re-caliberated in 2012.
The increased GDP is also expected to wade off the perception of high debt to GDP levels and create room for further infrastructure funding.
Copper production from FQM’s Kalumbila Mine not included in Current GDP numbers as mines only started full production post 2012
