Fitch Solutions, a renowned financial forecasting firm based in the United Kingdom has projected that beer would be the largest consumption category in Zambia as the country heads towards the end of the year due to its affordability.
The projections made last month showed that beer would be the largest consumption category due to its affordability, while spirits consumption growth would be steady due to less exposure to price volatility in the import market.
“We hold a positive outlook for alcoholic drinks spending in Zambia, with growth driven by the market’s favourable demographic profile, rising disposable incomes, as well as increasing levels of local production.
“Wine consumption growth will weaken over the medium term (2023-2027) as elevated inflation, worsening environmental conditions and supply chain constraints feed through into increased price pressures and higher growth in import unit values (USD per tonne),” according to Fitch.
Meanwhile, Fitch also forecasts that Zambian real Gross Domestic Product (GDP) growth would slow to 3.7 percent in 2023, from 7.0 percent in 2022.
While a recovery in copper production would see export growth return to positive territory, Fitch projected that a slowdown in private consumption would cap overall growth.
“In 2024, we project that growth will recover slightly to 4.0 percent, supported by an uptick in private consumption as inflation moderates and becomes less volatile,” it stated.
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