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The Economy of Zambia

Zambian Economy

Zambia's map

Economy - overview: Zambia's economy has experienced strong growth in recent years, with real GDP growth in 2005-08 about 6% per year. Privatization of government-owned copper mines in the 1990s relieved the government from covering mammoth losses generated by the industry and greatly improved the chances for copper mining to return to profitability and spur economic growth. Copper output has increased steadily since 2004, due to higher copper prices and foreign investment. In 2005, Zambia qualified for debt relief under the Highly Indebted Poor Country Initiative, consisting of approximately USD 6 billion in debt relief. Zambia experienced a bumper harvest in 2007, which helped to boost GDP and agricultural exports and contain inflation. Although poverty continues to be significant problem in Zambia, its economy has strengthened, featuring single-digit inflation, a relatively stable currency, decreasing interest rates, and increasing levels of trade. The decline in world commodity prices and demand will hurt GDP growth in 2009, and elections and campaign promises are likely to weaken Zambia's improved fiscal stance.

GDP:

GDP - real growth rate: 5.8% (2008 est.) 5.7% (2007 est.) 6.2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 16.7% industry: 26% services: 57.3% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 1.2% highest 10%: 38.8% (2004)

Distribution of family income - Gini index: 50.8 (2004)

Inflation rate (consumer prices):

Labor force: 5.093 million (2008 est.)

Labor force - by occupation: agriculture: 85% industry: 6% services: 9% (2004)

Unemployment rate: 50% (2000 est.)

Budget: revenues: $3.777 billion expenditures: $4.104 billion (2008 est.)

Industries: copper mining and processing, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulture

Industrial production growth rate: 7% (2008 est.)

Electricity - production: 9.289 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 8.625 billion kWh (2006 est.)

Electricity - exports: 255 million kWh (2006)

Electricity - imports: 68 million kWh (2007 est.)

Oil - production: 150 bbl/day (2007 est.)

Oil - consumption: 14,760 bbl/day (2006 est.)

Oil - exports: 190.6 bbl/day (2005)

Oil - imports: 13,810 bbl/day (2005)

Oil - proved reserves: NA bbl

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca), coffee; cattle, goats, pigs, poultry, milk, eggs, hides

Exports: $5.632 billion f.o.b. (2008 est.)

Exports - commodities: copper/cobalt 64%, cobalt, electricity; tobacco, flowers, cotton

Exports - partners: Switzerland 41.8%, South Africa 12%, Thailand 5.9%, Democratic Republic of the Congo 5.3%, Egypt 5%, Saudi Arabia 4.7%, China 4.1% (2007)

Imports: $4.423 billion f.o.b. (2008 est.)

Imports - commodities: machinery, transportation equipment, petroleum products, electricity, fertilizer; foodstuffs, clothing

Imports - partners: South Africa 47.4%, UAE 6.3%, China 6%, India 4.1%, UK 4% (2007)

Debt - external: $2.913 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Zambian kwacha (ZMK) per US dollar - 3,512.9 (2008 est.), 3,990.2 (2007), 3,601.5 (2006), 4,463.5 (2005), 4,778.9 (2004)

Fiscal year: