Zambia Economic Outlook
April 26, 2022The economy ended 2021 on a strong footing: GDP expanded an annual 2.1% in Q4, softening from Q3’s 3.3% growth—largely on a smaller base effect. This brought overall growth to 4.4% for the year, as activity recovered from the prior year’s pandemic-induced downturn. However, dynamics should have slowed in Q1 2022, as private-sector conditions deteriorated on average. Moreover, private spending was likely in a tough spot: While merchandise imports expanded strongly in January–February, price pressures continued to build up—despite gradually easing—and private-sector employment levels dropped somewhat. More positively, as commodity prices remained elevated, production of copper—the country’s key export—will have supported the external sector. This bodes well for public finances and fiscal deficit reduction, amid investment plans to continually ramp up copper production.
Zambia Economic GrowthGrowth is set to be robust this year: President Hichilema’s efforts to fight corruption, coupled with business-friendly policies, should support sentiment and attract investment. This also bodes well for a debt-restructuring deal, which would grant access to external credit lines. Lastly, high copper prices will bolster the external sector and support public coffers. FocusEconomics panelists see GDP growing 2.9% in 2022, which is up 0.1 percentage points from last month’s forecast, and 3.1% in 2023.
Zambia Economy Data
5 years of Zambia economic forecasts for more than 30 economic indicators.
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|Bond Yield||33.00||0.0 %||Dec 31|
|Exchange Rate||14.09||0.0 %||Jan 01|
|Stock Market||0.3||0.0 %||Jan 06|
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