Zambia Economy 2008

Economy - overview:
Despite progress in privatization and budgetary reform, Zambia's economic growth in 2005-07 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 good again in 2005, helping to 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 (purchasing power parity):
$15.93 billion (2007 est.)

GDP (official exchange rate):
$6.247 billion (2007 est.)

GDP - real growth rate:
5.3% (2007 est.)

GDP - per capita (PPP):
$1,400 (2007 est.)

GDP - composition by sector:
agriculture: 17.6%
industry: 26%
services: 56.5% (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.)

Population below poverty line:
86% (1993)

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):
10.5% (2007 est.)

Investment (gross fixed):
25.1% of GDP (2007 est.)

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

Public debt:
31.9% of GDP (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

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 - exports:
169 bbl/day (2004)

Oil - imports:
13,370 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

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:
$150 million (2007 est.)

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

Economic aid - recipient:
$945 million (2005)

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:
$988.9 million (2005)

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)