Zambia’s economy is recovering from drought, with growth driven by mining, agriculture, and tourism, expected to increase by 5.8% in 2025. Public debt is forecasted to decrease from 133% of GDP in 2023 to 90.7% in 2025, as agreements to restructure about 94% of Zambia’s external debt are put in place. However, climate risks, shortages of hydroelectric power, and ongoing reliance on mining pose significant threats to an otherwise positive outlook. GDP growth is projected to average 6.5% for 2026–27, supported by activity in agriculture, industry (including mining and agrifood processing), as well as services linked to mining, agriculture, and tourism. Poverty is expected to decline by roughly 1 percentage point annually through 2027, but this progress could accelerate over the medium term as subsistence agriculture transforms, and urban labor markets improve.

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