Economy of Zambia
Overview
Despite progress in privatization and budgetary reform, Zambia's economic growth in 2005-06 remained somewhat below the 6%-7% per year needed to reduce poverty significantly. Privatization of government-owned copper mines 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 the opening of new mines. The maize harvest was again good in 2005, helping boost GDP and agricultural exports. Cooperation continues with international bodies on programs to reduce poverty, including a new lending arrangement with the IMF in the second quarter of 2004. A tighter monetary policy will help cut inflation, but Zambia still has a serious problem with high public debt.
GDP
Real Growth Rate
5%
Per Capita
USD 1,000
From Agriculture
20%
From Industry
29%
From Services
51%
Labour Force
Available for Work
4,903
Working in Agriculture
85%
Working in Industry
6%
Working in Services
9%
Unemployment Rate
50%
Population Below Poverty Line
86%
Inflation Rate
9%
Investment as Percent of GDP
27%
Budget
Revenues
USD 2,674 (m)
Expenditures
USD 2,990 (m)
Public Debt
US$ 3814.00 (m)
Agricultural Products
Corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca), coffee; cattle, goats, pigs, poultry, milk, eggs, hides.
Core Industries
Copper mining and processing, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulture.
Exports
Value
USD 3,928 (m)
Commodities
Copper/cobalt 64%, cobalt, electricity; tobacco, flowers, cotton.
Partners
Switzerland 28.7%, South Africa 18.6%, UK 14.4%, Democratic Republic of the Congo 5.4%, Tanzania 5.1%, Zimbabwe 4.1% (2005).
Imports
Value
USD 3,092 (m)
Commodities
Machinery, transportation equipment, petroleum products, electricity, fertilizer; foodstuffs, clothing.
Partners
South Africa 47.6%, UK 12.6%, Zimbabwe 4.3% (2005).
External Debt
USD 4,397 (m)
Fiscal Year
Calendar year
