view of skyscrapers from below

Zambia Economic Forecast

Zambia Economic Outlook

Available data suggests that the economy gathered some steam at the outset of the year. The private-sector PMI rebounded in January–February from Q4’s slump. That said, it fell into contractionary terrain in March, weighed on by a weaker kwanza and February’s interest rate hike. Momentum seemingly remained subdued in April, as the PMI continued to point to weaker business activity, while inflation climbed back into double-digit territory after 11 months, likely denting private spending. Going forward, May’s rate hike is set to hamper the economy further. In other news, in late April, the country submitted a debt restructuring proposal to official creditors; reaching an agreement is crucial for the disbursement of USD 188 million of IMF funding. Talks are ongoing, and the IMF expects that a deal will be reached soon.

Zambia Inflation

Inflation increased to 10.2% in April from March’s 9.9%, moving further away from the Central Bank’s 6.0–8.0% target range. The acceleration was driven by a broad-based uptick in price pressures. The Bank sees inflation remaining above target during this year and the next. Accordingly, on 15–16 May, it raised the key policy rate to 9.50% from 9.25%.

This chart displays Economic Growth (GDP, annual variation in %) for Zambia from 2013 to 2022.

Zambia Economic Data

2017 2018 2019 2020 2021
Population (million) 17.3 17.8 18.4 18.9 19.5
GDP (USD bn) 25.8 26.9 23.2 18.1 22.1
GDP per capita (USD) 1,493 1,509 1,260 956 1,137
GDP (ZMW bn) 246 283 300 332 443
Economic Growth (Nominal GDP, ann. var. %) 14.0 15.0 6.1 10.6 33.5
Economic Growth (GDP, ann. var. %) 3.5 3.7 1.8 -2.8 4.6
Fiscal Balance (% of GDP) -7.5 -8.3 -9.4 -13.8 -8.1
Public Debt (% of GDP) 63.4 75.2 94.4 140.2 110.8
Money (ann. var. of M2 %) 20.8 15.4 12.2 47.2 6.7
Inflation (CPI, ann. var. %, eop) 6.1 7.9 11.7 19.2 16.4
Inflation (CPI, ann. var. %, aop) 6.6 7.5 9.2 15.7 22.0
Policy Rate (%, eop) 10.25 9.75 11.50 8.00 9.00
Exchange Rate (ZMW per USD, eop) 10.0 12.0 14.1 21.2 16.7
Exchange Rate (ZMW per USD, aop) 9.54 10.52 12.97 18.37 20.03
Current Account Balance (USD bn) -0.4 -0.3 0.2 2.4 2.7
Current Account Balance (% of GDP) -1.7 -1.3 0.7 13.1 12.1
Merchandise Trade Balance (USD bn) 1.0 0.5 0.7 3.2 4.8
Merchandise Exports (USD bn) 8.2 9.0 7.2 8.0 11.2
Merchandise Imports (USD bn) 7.3 8.5 6.5 4.8 6.4
Merchandise Exports (ann. var. %) 25.7 9.9 -19.8 10.4 40.0
Merchandise Imports (ann. var. %) 15.2 17.4 -23.6 -26.4 33.4
Foreign Direct Investment (USD bn) 1.1 0.4 0.9 -0.2 -0.5
International Reserves (USD bn) 2.1 1.6 1.4 1.2 2.8
International Reserves (months of imports) 3.4 2.2 2.7 3.0 5.2
External Debt (USD bn) 23.0 23.5 27.3 26.7 24.0
External Debt (% of GDP) 88.9 87.4 117.7 147.6 108.6

Free Sample Report

Interested in Zambia economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest