Zambia Economy Profile 2008

Economy - overview

Zambia's economy has experienced modest growth in recent years, with real GDP growth in 2005-07 between 5-6% 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.

GDP (purchasing power parity)

$15.93 billion (2007 est.)

GDP (official exchange rate)

$10.89 billion (2007 est.)

GDP - real growth rate

6% (2007 est.)

GDP - per capita (PPP)

$1,400 (2007 est.)

GDP - composition by sector

agriculture: 17.6%
industry: 26%
services: 56.5% (2007 est.)

Population below poverty line

86% (1993)

Household income or consumption by percentage share

lowest 10%: 1.2%
highest 10%: 38.8% (2004)

Inflation rate (consumer prices)

8.9% (2007 est.)

Investment (gross fixed)

25.1% of GDP (2007 est.)

Labor force

4.989 million (2007 est.)

Labor force - by occupation

agriculture: 85%
industry: 6%
services: 9% (2004)

Unemployment rate

50% (2000 est.)

Distribution of family income - Gini index

50.8 (2004)

Budget

revenues: $2.508 billion
expenditures: $2.838 billion (2007 est.)

Public debt

31.9% of GDP (2007 est.)

Industries

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

Industrial production growth rate

6.2% (2007 est.)

Electricity - production

8.85 billion kWh (2005)

Electricity - consumption

8.655 billion kWh (2005)

Electricity - exports

243 million kWh (2005)

Electricity - imports

465 million kWh (2005)

Oil - production

150 bbl/day (2005 est.)

Oil - consumption

14,000 bbl/day (2005 est.)

Oil - imports

13,370 bbl/day (2004)

Oil - exports

169 bbl/day (2004)

Oil - proved reserves

NA

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$856 million (2007 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

$4.017 billion f.o.b. (2007 est.)

Exports - commodities

copper/cobalt 64%, cobalt, electricity; tobacco, flowers, cotton

Exports - partners

Switzerland 38.4%, South Africa 21.6%, China 10.3%, UK 7.6%, Tanzania 6.4% (2006)

Imports

$2.993 billion f.o.b. (2007 est.)

Imports - commodities

machinery, transportation equipment, petroleum products, electricity, fertilizer; foodstuffs, clothing

Imports - partners

South Africa 47.3%, UAE 10.4%, Zimbabwe 5.7%, Norway 4% (2006)

Reserves of foreign exchange and gold

$1.1 billion (31 December 2007 est.)

Debt - external

$2.798 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$4.5 billion (2007)

Economic aid - recipient

$504 million (2007)

Currency (code)

Zambian kwacha (ZMK)

Exchange rates

Zambian kwacha per US dollar - 3,990.2 (2007), 3,601.5 (2006), 4,463.5 (2005), 4,778.9 (2004), 4,733.3 (2003)

Fiscal year

calendar year