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Zambia vs. Mozambique

Economy

ZambiaMozambique
Economy - overview

Zambia had one of the world's fastest growing economies for the ten years up to 2014, with real GDP growth averaging roughly 6.7% per annum, though growth slowed during the period 2015 to 2017, due to falling copper prices, reduced power generation, and depreciation of the kwacha. Zambia's lack of economic diversification and dependency on copper as its sole major export makes it vulnerable to fluctuations in the world commodities market and prices turned downward in 2015 due to declining demand from China; Zambia was overtaken by the Democratic Republic of Congo as Africa's largest copper producer. GDP growth picked up in 2017 as mineral prices rose.

Despite recent strong economic growth and its status as a lower middle-income country, widespread and extreme rural poverty and high unemployment levels remain significant problems, made worse by a high birth rate, a relatively high HIV/AIDS burden, by market-distorting agricultural and energy policies, and growing government debt. Zambia raised $7 billion from international investors by issuing separate sovereign bonds in 2012, 2014, and 2015. Concurrently, it issued over $4 billion in domestic debt and agreed to Chinese-financed infrastructure projects, significantly increasing the country's public debt burden to more than 60% of GDP. The government has considered refinancing $3 billion worth of Eurobonds and significant Chinese loans to cut debt servicing costs.

At independence in 1975, Mozambique was one of the world's poorest countries. Socialist policies, economic mismanagement, and a brutal civil war from 1977 to 1992 further impoverished the country. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined with donor assistance and with political stability since the multi-party elections in 1994, propelled the country's GDP, in purchasing power parity terms, from $4 billion in 1993 to about $37 billion in 2017. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. In spite of these gains, about half the population remains below the poverty line and subsistence agriculture continues to employ the vast majority of the country's work force.

Mozambique's once substantial foreign debt was reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives. However, in 2016, information surfaced revealing that the Mozambican Government was responsible for over $2 billion in government-backed loans secured between 2012-14 by state-owned defense and security companies without parliamentary approval or national budget inclusion; this prompted the IMF and international donors to halt direct budget support to the Government of Mozambique. An international audit was performed on Mozambique's debt in 2016-17, but debt restructuring and resumption of donor support have yet to occur.

Mozambique grew at an average annual rate of 6%-8% in the decade leading up to 2015, one of Africa's strongest performances, but the sizable external debt burden, donor withdrawal, elevated inflation, and currency depreciation contributed to slower growth in 2016-17.

Two major International consortiums, led by American companies ExxonMobil and Anadarko, are seeking approval to develop massive natural gas deposits off the coast of Cabo Delgado province, in what has the potential to become the largest infrastructure project in Africa. . The government predicts sales of liquefied natural gas from these projects could generate several billion dollars in revenues annually sometime after 2022.

GDP (purchasing power parity)$61.985 billion (2019 est.)

$61.104 billion (2018 est.)

$58.735 billion (2017 est.)

note: data are in 2017 dollars
$38.91 billion (2019 est.)

$38.042 billion (2018 est.)

$36.775 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate3.4% (2017 est.)

3.8% (2016 est.)

2.9% (2015 est.)
3.11% (2018 est.)

3.7% (2017 est.)

4.07% (2017 est.)
GDP - per capita (PPP)$3,470 (2019 est.)

$3,522 (2018 est.)

$3,485 (2017 est.)

note: data are in 2017 dollars
$1,281 (2019 est.)

$1,290 (2018 est.)

$1,284 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 7.5% (2017 est.)

industry: 35.3% (2017 est.)

services: 57% (2017 est.)
agriculture: 23.9% (2017 est.)

industry: 19.3% (2017 est.)

services: 56.8% (2017 est.)
Population below poverty line54.4% (2015 est.)46.1% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 1.5%

highest 10%: 47.4% (2010)
lowest 10%: 1.9%

highest 10%: 36.7% (2008)
Inflation rate (consumer prices)9.1% (2019 est.)

7.4% (2018 est.)

6.5% (2017 est.)
2.7% (2019 est.)

3.9% (2018 est.)

15.4% (2017 est.)
Labor force6.898 million (2017 est.)12.9 million (2017 est.)
Labor force - by occupationagriculture: 54.8%

industry: 9.9%

services: 35.3% (2017 est.)
agriculture: 74.4%

industry: 3.9%

services: 21.7% (2015 est.)
Unemployment rate15% (2008 est.)

50% (2000 est.)
24.5% (2017 est.)

25% (2016 est.)
Distribution of family income - Gini index57.1 (2015 est.)

50.8 (2004)
54 (2014 est.)

47.3 (2002)
Budgetrevenues: 4.473 billion (2017 est.)

expenditures: 6.357 billion (2017 est.)
revenues: 3.356 billion (2017 est.)

expenditures: 4.054 billion (2017 est.)
Industriescopper mining and processing, emerald mining, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulturealuminum, petroleum products, chemicals (fertilizer, soap, paints), textiles, cement, glass, asbestos, tobacco, food, beverages
Industrial production growth rate4.7% (2017 est.)4.9% (2017 est.)
Agriculture - productssugar cane, cassava, maize, milk, vegetables, soybeans, beef, tobacco, wheat, groundnutssugar cane, cassava, maize, milk, bananas, tomatoes, sweet potatoes, rice, sorghum, potatoes
Exports$8.216 billion (2017 est.)

$6.514 billion (2016 est.)
$3.349 billion (2019 est.)

$3.874 billion (2018 est.)

$2.505 billion (2017 est.)
Exports - commoditiescopper, gold, gemstones, sulfuric acid, raw sugar, tobacco (2019)coal, aluminum, natural gas, tobacco, electricity, gold, lumber (2019)
Exports - partnersSwitzerland 29%, China 16%, Namibia 12%, Democratic Republic of the Congo 9%, Singapore 5% (2019)South Africa 16%, India 13%, China 12%, Italy 7%, United Arab Emirates 5%, Germany 5% (2019)
Imports$7.852 billion (2017 est.)

$6.539 billion (2016 est.)
$7.371 billion (2019 est.)

$7.614 billion (2018 est.)

$5.076 billion (2017 est.)
Imports - commoditiesrefined petroleum, crude petroleum, delivery trucks, gold, fertilizers (2019)refined petroleum, chromium, iron, bauxite, electricity (2019)
Imports - partnersSouth Africa 29%, China 14%, United Arab Emirates 12%, India 5% (2019)South Africa 31%, India 18%, China 17% (2019)
Debt - external$11.66 billion (31 December 2017 est.)

$9.562 billion (31 December 2016 est.)
$10.91 billion (31 December 2017 est.)

$10.48 billion (31 December 2016 est.)
Exchange ratesZambian kwacha (ZMK) per US dollar -

21.065 (2020 est.)

15.3736 (2019 est.)

11.855 (2018 est.)

8.6 (2014 est.)

6.2 (2013 est.)
meticais (MZM) per US dollar -

74.12 (2020 est.)

63.885 (2019 est.)

61.625 (2018 est.)

39.983 (2014 est.)

31.367 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt63.1% of GDP (2017 est.)

60.7% of GDP (2016 est.)
102.1% of GDP (2017 est.)

121.6% of GDP (2016 est.)
Reserves of foreign exchange and gold$2.082 billion (31 December 2017 est.)

$2.353 billion (31 December 2016 est.)
$3.361 billion (31 December 2017 est.)

$2.081 billion (31 December 2016 est.)
Current Account Balance-$1.006 billion (2017 est.)

-$934 million (2016 est.)
-$3.025 billion (2019 est.)

-$4.499 billion (2018 est.)
GDP (official exchange rate)$25.71 billion (2017 est.)$14.964 billion (2019 est.)
Credit ratingsFitch rating: RD (2020)

Moody's rating: Ca (2020)

Standard & Poors rating: SD (2020)
Fitch rating: CCC (2019)

Moody's rating: Caa2 (2019)

Standard & Poors rating: CCC+ (2019)
Ease of Doing Business Index scoresOverall score: 66.9 (2020)

Starting a Business score: 84.9 (2020)

Trading score: 56.9 (2020)

Enforcement score: 50.8 (2020)
Overall score: 55 (2020)

Starting a Business score: 69.3 (2020)

Trading score: 73.8 (2020)

Enforcement score: 39.8 (2020)
Taxes and other revenues17.4% (of GDP) (2017 est.)26.7% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-7.3% (of GDP) (2017 est.)-5.6% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 26%

male: 24.7%

female: 27.6% (2018 est.)
total: 7.4%

male: 7.7%

female: 7.1% (2015 est.)
GDP - composition, by end usehousehold consumption: 52.6% (2017 est.)

government consumption: 21% (2017 est.)

investment in fixed capital: 27.1% (2017 est.)

investment in inventories: 1.2% (2017 est.)

exports of goods and services: 43% (2017 est.)

imports of goods and services: -44.9% (2017 est.)
household consumption: 69.7% (2017 est.)

government consumption: 27.2% (2017 est.)

investment in fixed capital: 21.7% (2017 est.)

investment in inventories: 13.9% (2017 est.)

exports of goods and services: 38.3% (2017 est.)

imports of goods and services: -70.6% (2017 est.)
Gross national saving39.7% of GDP (2019 est.)

41.8% of GDP (2018 est.)

36.3% of GDP (2017 est.)
17.8% of GDP (2019 est.)

12.9% of GDP (2018 est.)

12.5% of GDP (2017 est.)

Source: CIA Factbook