Economic factors facing tough challenging situations, triggering price growth upwards!
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Social Economist Kelvin Chisanga’s ‘Expectations of 2023 Zambia’s National Budget!
By Kelvin Chisanga
Life generally is getting on relatively tougher situations with many opposing ends sitting right on the fence, acting as relatively “bad economic effects” or we can call them as “offsetting balances” opposing growth trajectory as can be seen from the current prevailing economic fronts where we are seriously witnessing key fundamentals taking a different supply and demand dimensions, following some dramatic events as observed in most key commodities and fundamental factors such as in fuel, forex, essential staple foods as well as in energy sector, as these are now forming a serious stage of firestorm most likely to be faced in this particular year.
The escalating cost of fuel and related aid to trade cost factor strongly interplays as a basal factor, especially with fuel being a strong baseline to production and by the wider extensions; it plays out with the entire business processes and investment patterns.
The rapid movements which have since been experienced in the exchange rates in the past few months coupled with the instability seen in the global fuel pricing structures together with the overheating pressure being faced with the most basic essential commodities at the mercy of dramatic climate events, will definitely continue to speak negatives as this will drive away some good economic effects and elements being recorded on the other side, as this continuous increments key factors like interest rates, cost of goods and with the respects to fuel commodity, proves strongly that the pass through effect will extremely hit into most families on their disposal incomes as well as affecting to the larger extent on business environment in this year.
The Zambian economy is presently facing some hard hitters on one side of the coin, and this call for more concerted efforts in policy framework with motives and drives to carry along with some key stakeholders in trying to make some meaningful engagements ranging from the market players, regulators and consumers to deliberate solution based factors while being cognizant of the potential profile on risk and market power.
