Zambia Economic Outlook
October 20, 2020Recently released GDP data revealed that the economy contracted 2.1% in annual terms in Q2 (Q1: -0.3% year-on-year) as the Covid-19 fallout hammered activity in the construction and wholesale and retail trade sectors. Moving forward, although some positive signs have emerged, the recovery seemingly remains subdued. Despite bouncing back solidly in September, the private sector PMI was still below February’s pre-pandemic levels and in contractionary mode throughout Q3. Encouragingly, however, merchandise exports soared in July–August on improving demand and prices for copper. Meanwhile, in late September, both S&P Global Ratings and Fitch Ratings downgraded the country’s credit rating to CCC- and C, respectively, amid the increased possibility of default following the government’s request to bondholders to delay debt payments.
Zambia Economic GrowthThe economy is set to shrink notably this year due to the impact of Covid-19. Although output is seen recovering next year, growth is poised to remain tepid. Risks, which are heavily skewed to the downside, include uncertainty over the course of the pandemic, subdued global demand impacting tourism and copper exports, and the government’s growing debt service pains. FocusEconomics panelists see GDP growing 1.9% in 2021, which is up 0.2 percentage from last month’s forecast, before picking up to 2.8% in 2022.
Zambia Economy Data
5 years of Zambia economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||33.00||0.0 %||Dec 31|
|Exchange Rate||14.09||0.0 %||Jan 01|
|Stock Market||0.3||0.0 %||Jan 06|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.