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.
Election victory for Hakainde Hichilema has been applauded by markets, with the new administration expected to prioritise policy reform and unlock IMF financial support. With the new leader viewed as a free marketeer, we anticipate a reversal of the negative trends toward populism and resource nationalism to one of the establishment of a consolidation-centred fiscal agenda, besides a reduction in trade barriers. (Source: Zambia Quarterly Update, August 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) |
11.7 |
|
Real GDP (annual % change) |
-3.0 |
|
GDP per Capita, US$ |
1,056.7 |
|
Import Cover (months) |
2.06 |
|
Population, million |
18.4 |
| Total External Debt (as a % of GDP) |
148.0 |