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.
Stellar copper price performance on the global arena and a bumper crop provide shelter against a brittle consumer sector. Nascent recovery in household consumption and private sector sentiment is clipped by higher-than-expected inflation, volatile cash availability amid high government needs, and a lingering third wave of Covid-19 infections. Meanwhile, populism dictated fiscal policy while a ban on campaign rallies fuelled perceptions of a loss in democratic strength. (Source: Zambia Quarterly Update, June 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-6.8 |
|
Consumer Price Index (% change y-o-y, avg) |
15.7 |
|
Current Account Balance (as a % of GDP) |
11.9 |
|
Real GDP (annual % change) |
-2.8 |
|
GDP per Capita, US$ |
1,055.6 |
|
Import Cover (months) |
2.07 |
|
Population, million |
18.4 |
| Total External Debt (as a % of GDP) |
148.0 |