By Nasreen Seria and Geoffrey Kapembwa
Oct. 23 (Bloomberg) — Zambia, Africa’s biggest copper producer, cut its forecast for economic growth this year to 6 percent as commodity prices plunged.
While the country’s banks don’t have direct exposure to U.S. sub-prime mortgage debt, the global financial crisis may reduce foreign investment and impact growth forecasts, the finance ministry and central bank said in a joint statement e-mailed today.
The government had forecast growth of 7 percent this year, up from 5.4 percent in 2007. Copper has dropped 58 percent in London in the past six months.