Zambia Economy Profile 2009

Economy - overview

Zambia's economy has experienced strong growth in recent years, with real GDP growth in 2005-08 about 6% per year. Privatization of government-owned copper mines in the 1990s relieved the government from covering mammoth losses generated by the industry and greatly improved the chances for copper mining to return to profitability and spur economic growth. Copper output has increased steadily since 2004, due to higher copper prices and foreign investment. In 2005, Zambia qualified for debt relief under the Highly Indebted Poor Country Initiative, consisting of approximately USD 6 billion in debt relief. Zambia experienced a bumper harvest in 2007, which helped to boost GDP and agricultural exports and contain inflation. Although poverty continues to be significant problem in Zambia, its economy has strengthened, featuring single-digit inflation, a relatively stable currency, decreasing interest rates, and increasing levels of trade. The decline in world commodity prices and demand will hurt GDP growth in 2009, and elections and campaign promises are likely to weaken Zambia's improved fiscal stance.

GDP (purchasing power parity)

$17.5 billion (2008 est.)
$16.51 billion (2007 est.)
$15.54 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$14.32 billion (2008 est.)

GDP - real growth rate

6% (2008 est.)
6.2% (2007 est.)
6.2% (2006 est.)

GDP - per capita (PPP)

$1,500 (2008 est.)
$1,400 (2007 est.)
$1,400 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 16%
industry: 26.6%
services: 57.4% (2008 est.)

Population below poverty line

86% (1993)

Labor force

5.235 million (2008 est.)

Labor force - by occupation

agriculture: 85%
industry: 6%
services: 9% (2004)

Unemployment rate

50% (2000 est.)

Household income or consumption by percentage share

lowest 10%: 1.2%
highest 10%: 38.8% (2004)

Distribution of family income - Gini index

50.8 (2004)
52.6 (1998)

Investment (gross fixed)

25.5% of GDP (2008 est.)

Budget

revenues: $3.291 billion
expenditures: $3.578 billion (2008 est.)

Public debt

29.5% of GDP (2008 est.)
127.5% of GDP (2004 est.)

Inflation rate (consumer prices)

12.4% (2008 est.)
10.6% (2007 est.)

Central bank discount rate

14.49% (31 December 2008)
11.73% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
18.89% (31 December 2007)

Stock of money

$1.034 billion (31 December 2008)
$995.8 million (31 December 2007)

Stock of quasi money

$1.618 billion (31 December 2008)
$1.709 billion (31 December 2007)

Stock of domestic credit

$2.138 billion (31 December 2008)
$1.968 billion (31 December 2007)

Industries

copper mining and processing, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulture

Industrial production growth rate

6% (2008 est.)

Electricity - production

9.289 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 0.5%
hydro: 99.5%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

8.625 billion kWh (2006 est.)

Electricity - exports

255 million kWh (2006)

Electricity - imports

68 million kWh (2007 est.)

Oil - production

150 bbl/day (2007 est.)

Oil - consumption

14,760 bbl/day (2006 est.)

Oil - imports

13,810 bbl/day (2005)

Oil - exports

190.6 bbl/day (2005)

Oil - proved reserves

NA bbl

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$1.224 billion (2008 est.)
-$198 million (2007 est.)

Agriculture - products

corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca), coffee; cattle, goats, pigs, poultry, milk, eggs, hides

Exports

$4.818 billion (2008 est.)
$4.594 billion (2007 est.)

Exports - commodities

copper/cobalt 64%, cobalt, electricity; tobacco, flowers, cotton

Exports - partners

Switzerland 36.2%, South Africa 10.5%, China 8.1%, Democratic Republic of the Congo 5%, Saudi Arabia 4.9%, Egypt 4.7%, Italy 4.3% (2008)

Imports

$4.694 billion (2008 est.)
$3.611 billion (2007 est.)

Imports - commodities

machinery, transportation equipment, petroleum products, electricity, fertilizer; foodstuffs, clothing

Imports - partners

South Africa 49.3%, China 8.2%, UAE 7.9%, India 4.4% (2008)

Reserves of foreign exchange and gold

$1.096 billion (31 December 2008 est.)
$1.09 billion (31 December 2007 est.)

Debt - external

$2.861 billion (31 December 2008 est.)
$2.596 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$40.34 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$NA (31 December 2008)
$2.346 billion (31 December 2007)
$1.186 billion (31 December 2006)

Economic aid - recipient

$504 million (2007)

Currency (code)

ZMK

Currency (code)

Zambian kwacha (ZMK)

Exchange rates

Zambian kwacha (ZMK) per US dollar - 3,512.9 (2008 est.), 3,990.2 (2007), 3,601.5 (2006), 4,463.5 (2005), 4,778.9 (2004)

Fiscal year

calendar year