Economy - overview:

Zambia's economy has experienced modest growth in recent years, with real GDP growth in 2005-07 between 5-6% per year. Privatization of government-owned copper mines in the 1990s 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 foreign investment. In 2005, Zambia qualified for debt relief under the Highly Indebted Poor Country Initiative, consisting of approximately USD 6 billion in debt relief. Zambia experienced a bumper harvest in 2007, which helped to boost GDP and agricultural exports and contain inflation. Although poverty continues to be significant problem in Zambia, its economy has strengthened, featuring single-digit inflation, a relatively stable currency, decreasing interest rates, and increasing levels of trade.

GDP (purchasing power parity):

$15.92 billion (2007 est.)

GDP (official exchange rate):

$11.16 billion (2007 est.)

GDP - real growth rate:

5.3% (2007 est.)

GDP - per capita (PPP):

$1,300 (2007 est.)

GDP - composition by sector:

agriculture: 17.3%
industry: 26.2%
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):

10.7% (2007 est.)

Investment (gross fixed):

26% of GDP (2007 est.)

Budget:

revenues: $2.542 billion
expenditures: $2.678 billion (2007 est.)

Public debt:

28% 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:

7.3% (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:

NA

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:

-$743 million (2007 est.)

Exports:

$4.348 billion f.o.b. (2007 est.)

Exports - commodities:

copper/cobalt 64%, cobalt, electricity; tobacco, flowers, cotton

Exports - partners:

Switzerland 34.1%, South Africa 20.4%, China 8.4%, Tanzania 6%, Italy 5.6%, Thailand 4.7% (2006)

Imports:

$3.622 billion f.o.b. (2007 est.)

Imports - commodities:

machinery, transportation equipment, petroleum products, electricity, fertilizer; foodstuffs, clothing

Imports - partners:

South Africa 48.2%, UAE 10.3%, Zimbabwe 5.8%, China 5.6% (2006)

Economic aid - recipient:

$504 million (2007)

Reserves of foreign exchange and gold:

$1.09 billion (31 December 2007 est.)

Debt - external:

$2.598 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:

$4.5 billion (2007)

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)

Fiscal year:

calendar year