By VITA BANDA
ECONOMIST Trevor Hambayi says the lack of liquidity in the economy will affect Government’s target to achieve four percent economic growth.
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Mr Hambayi said the private sector had not been able to borrow any money to reinvest in the economy thereby affecting growth.
Mr Hambayi also said Government’s decision to withhold over K49 billion in payments owed to suppliers and contractors had sucked liquidity out of the economy.
“When there is liquidity in the economy, it is possible for the private sector to borrow and reinvest in the economy contributing to economic growth” he said.
Mr Hambayi added that despite sectors like tourism starting to stabilize post COVID-19 era, there has not been any direct impact on economic growth.
He said the projected Gross Domestic Product (GDP) growth for 2024 was still insufficient to deal with the challenges that the country is currently facing.
“Government has to come up with policies that will encourage investment in production and manufacturing if the targeted economic growth is to be attained,” Mr Hambayi said.
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