Economy of Zambia | NKC African Economics
Boasting a wealth of natural resources, including an assortment of mineral deposits and substantial water supply capacity, the strength of Zambia’s external position and growth environment relies heavily on the performance of the copper sector. This is however a double-edged sword, as Zambia is highly susceptible to shocks to the terms of trade due to its dependence on copper and a narrow export base.
The new administration continues to cement our view that a shift towards a more pragmatic, market-orientated approach to policymaking will be augmented by a willingness to take responsibility for fiscal sins committed under the previous regime. Our revised GDP growth forecast for 2021 – an above-consensus 3.5% – captures strong performance in net external trade and strengthening business confidence. (Source: Zambia Quarterly Update, November 2021.)