In-Depth Analysis
Zambia
Boasting a wealth of natural resources, including an assortment of mineral deposits and substantial water supply capacity, the strength of Zambia’s external position and growth environment relies heavily on the performance of the copper sector. This is however a double-edged sword, as Zambia is highly susceptible to shocks to the terms of trade due to its dependence on copper and a narrow export base.
The market-friendly election outcome in August 2021 unlocked positive revisions across the risk spectrum, rooted in the expectation that the Hichilema administration will repair the fragile relationship with the mining sector and lower policy-related barriers to trade. This, alongside improved debt transparency, paves the way for an overhaul of fiscal policy all the way from planning to implementation. Fiscal reform will be supported by IMF Executive Board approval of a $1.4bn support package, and the conclusion of the debt restructuring exercise. (Source: Zambia Annual Country Profile, February 2022.)
Macroeconomic Data
(2021)
|
Fiscal Balance (as a % of GDP) |
-5.3 |
|
Consumer Price Index (% change y-o-y, avg) |
22.0 |
|
Current Account Balance (as a % of GDP) |
11.5 |
|
Real GDP (annual % change) |
3.7 |
|
GDP per Capita, US$ |
1,156.2 |
|
Import Cover (months) |
1.85 |
|
Population, million |
18.9 |
| Total External Debt (as a % of GDP) |
148.3 |