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Economy - overview
The Zambian economy has historically been based on the copper mining industry. Output of copper had fallen, however, to a low of 228,000 metric tons in 1998, after a 30-year decline in output due to lack of investment, low copper prices, and uncertainty over privatization. In 2002, following privatization of the industry, copper production rebounded to 337,000 metric tons. Improvements in the world copper market have magnified the effect of this volume increase on revenues and foreign exchange earnings.
The Zambian Government is pursuing an economic diversification program to reduce the economy's reliance on the copper industry. This initiative seeks to exploit other components of Zambia's rich resource base by promoting agriculture, tourism, gemstone mining, and hydro power. In 2003, nonmetal exports increased by 25%, and accounted for 38% of all export earnings, up from 35%.
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 again good in 2005, helping 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 which has reached 9% in 2006. Zambia's economic outlook looks very good as economic growth approaches 7%.
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GDP (purchasing power parity):
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$10.23 billion (2005 est.) |
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GDP (official exchange rate):
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$5.521 billion (2005 est.) |
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GDP - real growth rate:
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5% (2005 est.) |
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GDP - per capita (PPP):
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$900 (2005 est.) |
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GDP - composition by sector:
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agriculture: 21.7%
industry: 29.5%
services: 48.8% (2005 est.) |
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Labor force:
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4.8 million (2005 est.) |
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Labor force - by occupation:
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agriculture 85%, industry 6%, services 9% |
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Unemployment rate:
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50% (2000 est.) |
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Population below poverty line:
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86% (1993)
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Household income or consumption by percentage share:
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lowest 10%: 1.1%
highest 10%: 41% (1998) |
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Distribution of family income - Gini index:
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52.6 (1998)
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Inflation rate (consumer prices):
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19% (2005 est.) |
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Investment (gross fixed):
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25.9% of GDP (2005 est.) |
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Budget:
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revenues: $1.688 billion
expenditures: $1.866 billion; including capital expenditures of $NA (2005 est.) |
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Public debt:
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104.2% of GDP (2005 est.) |
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Agriculture - products:
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corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca), coffee; cattle, goats, pigs, poultry, milk, eggs, hides |
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Industries:
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copper mining and processing, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulture |
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Industrial production growth rate:
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9.8% (2005 est.) |
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Electricity - production:
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8.347 billion kWh (2003) |
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Electricity - consumption:
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5.345 billion kWh (2003) |
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Electricity - exports:
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2 billion kWh (2003) |
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Electricity - imports:
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0 kWh (2003)
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Oil - production:
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130.2 bbl/day (2003 est.) |
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Oil - consumption:
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12,250 bbl/day (2003 est.) |
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Oil - exports:
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NA bbl/day
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Oil - imports:
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NA bbl/day
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Natural gas - production:
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0 cu m (2003 est.) |
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Natural gas - consumption:
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0 cu m (2003 est.) |
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Current account balance:
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$-327 million (2005 est.) |
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Exports:
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$1.947 billion f.o.b. (2005 est.) |
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Exports - commodities:
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copper/cobalt 64%, cobalt, electricity; tobacco, flowers, cotton |
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Exports - partners:
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South Africa 25.6%, UK 17%, Switzerland 16%, Tanzania 7.4%, Democratic Republic of the Congo 7%, Zimbabwe 5.8% (2004) |
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Imports:
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$1.934 billion f.o.b. (2005 est.) |
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Imports - commodities:
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machinery, transportation equipment, petroleum products, electricity, fertilizer; foodstuffs, clothing |
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Imports - partners:
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South Africa 46.2%, UK 14.2%, UAE 7.1%, Zimbabwe 6% (2004) |
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Reserves of foreign exchange and gold:
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$500 million (2005 est.) |
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Debt - external:
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$5.866 billion (2005 est.) |
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Economic aid - recipient:
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$640.6 million (2002) |
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Currency (code):
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Zambian kwacha (ZMK) |
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Exchange rates:
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Zambian kwacha per US dollar - 3,150.2 (2006) 4,463.5 (2005), 4,778.9 (2004), 4,733.3 (2003), 4,398.6 (2002), 3,610.9 (2001) |
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Fiscal year:
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calendar year |
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Please Note:
Consular Section is
open for submissions, Monday to
Friday from 09:30 to 12:00.
Collections from 12:00 - 13:00 A charge of R120 per document is levied for authentication. |
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