Economy - overview Despite progress in privatization and budgetary reform, Zambia's economy has a long way to go. 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. However, low mineral prices have slowed the benefits from privatizing the mines and reduced incentives for further private investment in the sector. In late 2000, Zambia was determined to be eligible for debt relief under the Heavily Indebted Poor Countries (HIPC) initiative, but Zambia has not yet finalized its Poverty Reduction Strategy paper. Unemployment rates remain high, but GDP growth should continue at about 4%. Inflation should remain close to 20%.

GDP purchasing power parity - $8.5 billion (2001 est.)

GDP - real growth rate 3.9% (2001 est.)

GDP - per capita purchasing power parity - $870 (2001 est.)

GDP - composition by sector
agriculture: 24%
industry: 25%
services: 51% (2000)

Population below poverty line 86% (1993 est.)

Household income or consumption by percentage share
lowest 10%: 1.1%
highest 10%: 41% (1998)

Distribution of family income - Gini index 52.6 (1998)

Inflation rate (consumer prices) 21.5% (2001)

Labor force 3.4 million

Labor force - by occupation agriculture 85%, industry 6%, services 9%

Unemployment rate 50% (2000 est.)

Budget
revenues: $1.2 billion
expenditures: $1.25 billion, including capital expenditures of $NA (2001 est.)

Industries copper mining and processing, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulture

Industrial production growth rate 5.1% (2001 est.)

Electricity - production 7.822 billion kWh (2000)

Electricity - production by source
fossil fuel: 0.51%
hydro: 99.49%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 5.838 billion kWh (2000)

Electricity - exports 1.536 billion kWh (2000)

Electricity - imports 100 million kWh (2000)

Agriculture - products corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca); cattle, goats, pigs, poultry, milk, eggs, hides; coffee

Exports $876 million (f.o.b., 2001 est.)

Exports - commodities copper 55%, cobalt, electricity, tobacco, flowers, cotton

Exports - partners UK 25.2%, South Africa 24.5%, Switzerland 9.4%, Malawi 7.5% (2000)

Imports $12.05 billion (f.o.b., 2001 est.)

Imports - commodities machinery, transportation equipment, petroleum products, electricity, fertilizer; foodstuffs, clothing

Imports - partners South Africa 67.1%, UK 9.8%, Zimbabwe 7.5%, US 5.9% (2000)

Debt - external $5.8 billion (2001)

Economic aid - recipient $651 million (2000 est.)

Currency Zambian kwacha (ZMK)

Currency code ZMK

Exchange rates Zambian kwacha per US dollar - 3,848.65 (January 2002), 3,610.94 (2001), 3,110.84 (2000), 2,388.02 (1999), 1,862.07 (1998), 1,314.50 (1997)

Fiscal year calendar year

NOTE: The information regarding Zambia on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Zambia Economy 2002 information contained here. All suggestions for corrections of any errors about Zambia Economy 2002 should be addressed to the CIA.