Other sectors such as mining and construction also recorded positive growth but at a slower rate. However, the zambian gvernment is undertaking economic diversification to reduce the countrys reliance on the copper industry and exploit other components of zambia s rich resource base by promoting agriculture, tourism, gemstone mining and hydro power generation. The latest jctr 2001 monthly food basket survey shows that it is becoming more and more. Copper output is projected to increase by 16% in 2017 and by 8% in 2018. However, critical decisions must be made and actions implemented promptly to steer the country on a path of sustainable development and inclusive economic growth. Zambia economic outlook african development bank building.
In 202024 zambia faces a highly uncertain economic and political outlook as its government struggles to meet large and opaque outstanding debt obligations. Economic indicators for zambia including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and shortterm predictions for zambia economy. Seventh national development plan 2017 2021 i foreword zambia remains committed to the socio economic development planning of the country as reflected by the return to development planning in 2005. According to the world bank wb, in 20, zambias growth domestic product gdp was of usd 22. Zambias real gdp growth moderated sig nificantly to. This page has economic forecasts for zambia including a longterm outlook for the next decades, plus mediumterm expectations for the next four quarters and shortterm market predictions for the next release affecting the zambia economy.
December 2017 issue 10 zambia economic brief how zambia can borrow without sorrow public disclosure authorized. Further borrowing over the medium term for a series of debtfinanced infrastructure projects will prevent an imf rescue. Global finance magazine zambia gdp and economic data. Zambia economy gdp, inflation, cpi and interest rate. The mission assisted the authorities in enhancing methodologies and the compilation of gfs according to the updated government finance statistics. Lusaka, june 29, 2017 the zambian economy has continued its recovery in 2017, but the stronger growth and better macroeconomic indicators have not resulted in an improvement in the fiscal indicators, says a new world bank economic brief reaping richer returns from public expenditures in agriculture pdf released today. The agricultural sector is the backbone of the zambian economy as it contributes to the growth of the economy and also to exports, even though it contributes the. Zambias economic outlook is now stablestandard and poors. About onehalf of the countrys 16 million people are concentrated in a few urban zones. It affirmed the credit rating for the copperrich country at b.
Zambia has also affirmed its commitment to interregional trade with the east african community eac to form the. An overview of zambias economic and poverty situation introduction poverty is the most profound challenge that zambia faces today. Severe electricity rationing followed, and long periods of electricity load shedding dampened activity in almost all economic sectors. Despite the downgrade in august 2017, moodys has kept its negative outlook in place. Data in this publication are current as of their publishing date or in some casesprojected date.
Recent economic developments zambias recent economic performance suffers from a mix of domestic and international unfavourable. Agriculture is projected to recover gradually as irrigation projects come on stream, while industrial activity is project. The oecd economic outlook is the oecds twiceyearly analysis of the major economic trends and prospects for the next two years. According to the cia world factbook, in 20, agriculture accounted for 19. The most urgent issue for the zambian economy is thus a further reduction of its. However, the zambian gvernment is undertaking economic diversification to reduce the countrys reliance on the copper industry and exploit other components of zambias rich resource base by promoting agriculture, tourism, gemstone mining and hydro power generation. A month later, the agency commented that the suspension of 48 opposition members of parliament for 30 days point to a gradual institutional weakening. The outlook for the zimbabwean economy 2 been unstable with repeated inconsistency and reversals and, even when policy has been reasonable, weak execution. This tenth zambia economic brief with a focus section on sustainable borrowing and improved debt management.
Notwithstanding zambias positive macroeconomic outlook, there remained significant barriers to. Outlook zambias mediumterm outlook is largely constrained by a weak macroeconomic environment. The mission assisted the authorities in enhancing methodologies and the compilation of gfs according to the updated government finance statistics manual 2014. Fnb zambia says the market anticipates some resilience from the kwacha as a result of the measures announced by bank of zambia last week.
The economy of zambia is one of the fastest growing economies in africa and its capital, lusaka is the fastest growing city in the southern african development community sadc. The 2016 zambias export performance was bolstered by copper exports which accounted for well above 70 percent of the countrys total export earnings. Fitch downgraded the outlook on zambias sovereign credit rating from stable to negative. Invest in namibia harnessing investment to drive economic. Over the medium term, growth is projected to be in the range of 4% as. The report also highlights significant allocations in the 201718 budget to various sectors of the economy. Email notification signup sign up to receive free email notices when new series andor country items are posted on the imf website. Zambia hosts the headquarters of the common market for eastern and southern africa comesa and remains active in the southern africa development community sadc. Zambia is well endowed with mineral resources and the country derives most of its foreign earnings from the export of minerals. Prospects in the retail and consumer goods sector in ten sub. There is currently no resident representative in zambia. The tanzania economic outlook 2017 report provides an overview of tanzanias economic environment and key sectors. Browse additional economic indicators and data sets, selected by global finance editors, to learn more about zambia. In its january 2016 world economic outlook update, the imf revised forecasts for global growth down by 0.
Macro poverty outlook for zambia english the world bank. Three simulation models are used to forecast extreme poverty based on. Zambia african economic outlook 2017 although the next twelve months look more promising, zambia faced economic challenges in 2016 following another year of low copper prices and crippling electricity supply deficits affecting economic activity. The eius flagship service examines and explains the important political and economic trends in zambia. Severe drought conditions continued to restrain output at hydropower dams, weighing on the agricultural harvest and seemingly undercutting household spending growth in turn. Political environment tanzania has continued to enjoy political stability since it became independent in the early 1960s. Economy profile of zambia doing business 2020 indicators in order of appearance in the document starting a business procedures, time, cost and paidin minimum capital to start a limited liability company dealing with construction permits procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety. This annual report examines africas performance in crucial areas. During the second half of 2017, the bank of zambia will continue to strengthen the forward looking monetary policy framework, anchored on the policy rate as the key signal for the monetary. The mining industry, which is dominated by copper and a few other minerals, namely, zinc, silver, gold and cobalt, has been the most important driving force of economic development in zambia for over 70 years.
The government has initiated a plan for an integrated framework for development programs in the north east through implementation of targeted social. Zambias real gdp growth moderated sig nificantly to 1. The countrys economy has historically been based on the copper mining industry. Economic performance is expected to improve in the medium term. The human capital index hci database provides data at the country level for each of the components of the human capital index as well as for the overall index, disaggregated by gender. Despite the challenges, the outlook for subsaharan africa remains positive and significantly ahead of the global average. It is a social crisis with the majority of people denied a minimum decent living standard. Economic indicators for zambia including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and. Zambia economic outlook and investment environment positive. The outlook for 2017 is for a moderate economic recovery with real gdp projected to grow at 2. This monetary policy statement provides an outlook for global economic growth, domestic economic growth and inflation, and outlines monetary policy objectives for the second half of 2017. The agriculture season has started with good rains. Speaker, i beg to move that the house do now resolve into committee of supply on the estimates of revenue and expenditure for the year 1st january 2017 to 31st december 2017, presented to. Zambia had one of the worlds fastest growing economies for the ten years up to 2014, with real gdp growth averaging roughly 6.
Kalyalya made the comment during the african exportimport bank afreximbank 23 rd annual general meetings held in seychelles between 18 th and 24 th july 2016. Country report 2017 includes zambia real gross domestic product growth rate, with latest forecasts and historical data, gdp per capita, gdp composition and breakdown by sector. Zambias economy was hit by drought in the south and west that lowered 201819 agricultural production and hydropower electricity generation considerably. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Table 1 2018 cpi inflation has risen above the upper a b. A government finance statistics gfs technical assistance ta mission visited lusaka, zambia, during november 27december 8, 2017, to support the central statistical office cso in improving gfs for decision making and surveillance.
Zambia economic outlook real gdp growth slowed to an estimated 2% in 2019, down from 4. Zambia itself is one of subsaharan africas most highly urbanized countries. Seventh national development plan 20172021 i foreword zambia remains committed to the socioeconomic development planning of the country as reflected by the return to development planning in 2005. Mutati, mp minister of finance delivered to the national assembly on friday, 11th november, 2016 1. The seventh national development plan 7ndp for the period 2017 2021 is the successor to the revised sixth national development plan, 202016 r. Positive trends in economic indicators coupled with actions by the bank of zambia to ease the tight monetary policy. Zambia ranks among the countries with highest level of inequality globally.
Zambia s economy was hit by drought in the south and west that lowered 201819 agricultural production and hydropower electricity generation considerably. The good news is that 2017 was a better year than 2016 for both the zambian economy and the banking sector. Each of our country reports contain indepth and ongoing analysis and forecasts of political, policy and economic conditions in zambia, to help you understand what is happening now and to gain a picture of how zambia will look in the future. The economy likely remained in a dire situation in h2 2019, after growth slumped to a threeandahalfyear low in q2 2019. The agency affixed the negative outlook a year earlier due to a combination of falling copper revenue and slowing economic growth leading to persistent and large fiscal deficits as well as a doubling of government debt since. Denny kalyalya has recently commented that the countrys economic outlook is stable. The economic outlook remains bullish with a growth projection of four percent gross domestic product gdp as announced by the world bank. Zambia economy, politics and gdp growth summary the. Why has poverty remained so high, despite gdp growth. The african economic outlook 2017 presents the continents current state of affairs and forecasts its situation for the coming two years. Economic activity has improved in 2017, following a bumper harvest and improved hydroelectricity generation, increased copper production, higher copper prices, and more accommodating monetary policy. Zambia country report the economist intelligence unit.