Zambia Economy - 2005

Economy - overview:
Despite progress in privatization and budgetary reform, Zambia's economic growth remains somewhat below the 5% to 7% 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 increased in 2004 and is expected to increase again in 2005, due to higher copper prices and the opening of new mines. The maize harvest was again good in 2004, 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, 2004. A tighter monetary policy will help cut inflation, but Zambia still has a serious problem with fiscal discipline.

GDP:
purchasing power parity - $9.409 billion (2004 est.)

GDP - real growth rate:
4.6% (2004 est.)

GDP - per capita:
purchasing power parity - $900 (2004 est.)

GDP - composition by sector:
agriculture: 14.9%
industry: 28.9%
services: 56.1% (2004 est.)

Labor force:
4.63 million (2004 est.)

Labor force - by occupation:
agriculture 85%, industry 6%, services 9%

Unemployment rate:
50% (2000 est.)

Population below poverty line:
86% (1993)

Household income or consumption by percentage share:
lowest 10%: 1.1%
highest 10%: 41% (1998)

Distribution of family income - Gini index:
52.6 (1998)

Inflation rate (consumer prices):
18.3% (2004 est.)

Investment (gross fixed):
41.4% of GDP (2004 est.)

Budget:
revenues: $1.129 billion
expenditures: $1.307 billion, including capital expenditures of NA (2004 est.)

Public debt:
127.5% of GDP (2004 est.)

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

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

Industrial production growth rate:
6.9% (2004 est.)

Electricity - production:
8.167 billion kWh (2002)

Electricity - consumption:
5.345 billion kWh (2002)

Electricity - exports:
2.25 billion kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
11,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Current account balance:
$-181.4 million (2004 est.)

Exports:
$1.548 billion f.o.b. (2004 est.)

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

Exports - partners:
Tanzania 14.1%, South Africa 13.2%, China 9.1%, Japan 7.9%, Thailand 7.9%, Switzerland 7.3%, Belgium 6.7%, Malaysia 4% (2004)

Imports:
$1.519 billion f.o.b. (2004 est.)

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

Imports - partners:
South Africa 50.3%, Zimbabwe 13.2%, UAE 5.3% (2004)

Reserves of foreign exchange and gold:
$345 million (2004 est.)

Debt - external:
$5.353 billion (2004 est.)

Economic aid - recipient:
$651 million (2000 est.)

Currency (code):
Zambian kwacha (ZMK)

Exchange rates:
Zambian kwacha per US dollar - 4,778.9 (2004), 4,733.3 (2003), 4,398.6 (2002), 3,610.9 (2001), 3,110.8 (2000)