Zambia’s economy grew by 7.3 % last year-Bank of Zambia
Dr. Michael Gondwe
The Bank of Zambia has revealed that preliminary figures show that the Zambian economy grew by 7.3 percent last year, up from 6.8 percent recorded in 2011.
Central Bank Governor Michael Gondwe said the Zambian economy has continued to post strong GDP growth rates driven mostly by strong performances in the construction, agriculture, manufacturing and the transport sector.
Dr. Gondwe said construction sector was the best performer in 2012 growing by 15.3 percent from 8.9 percent recorded in 2011.
He however said mining and quarrying, the country’s economic mainstay is estimated to have declined by 13.2 percent mainly due to a fall in metal mining.
Dr. Gondwe was speaking in Lusaka last evening during the Bank of Zambia quarterly media briefing.
And on the economic outlook for the first half of 2013, Dr. Gondwe said Zambia’s economic prospects remains favourable with a projected GDP growth of 7 percent.
“We expect good performances in the agricultural, manufacturing and conservation sectors. In this regard, GDP is expected to be in line with the projected annual GDP growth rate of 7 percent,” Dr. Gondwe said.
“However, there are challenges to this outlook which include the fiscal cliff in the US yet to be fully resolved, spending cuts by some of the developed economies and a weak consumer and business confidence in most developed economies. Further a fall in the price of copper may reduce export earnings.”
Dr. Gondwe observed that although the average commercial bank interest rates have reduced, they still remain high beyond the reach of most SME’s.
He urged the commercial banks to lower their interest rates further in line with the Bank of Zambia Policy Rate.
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Namweso mwamba butesi ba gogo
Let me explain for you.
If HH had 100 cows, last year and this 107 cows. HH has grew by 7 %.
HH will not be happy about that growth, he will go out and engage into 24/7 artificial insemination of all cows, old & calves.
But look at your PF Governor… so happy with ka 7.3%. Did he even compare that growth to Oman or Peru?
Nostradamus kwena nangu bukopo mwati it’s like this? Learn to differentiate between microeconomics and macroeconomics.
Aletontonkanya ingombe kabili? How simplistic. I didn’t know that cows have this majical transformation powers where after interacting with them, you start thinking cows in everything. Cows in economics, cows for socializing, cows for food, cows for wealth even investments have to be cows, cows in politics. Thats Nostradamus for you. As I speak, he is using cows to subtract and add. Given three cows and you take away two, how much milk will remain? LOL!!!!
Nostradamus with all this growth how come we’re still a measly #105 in terms of size of our economy?Not too good imho.
well, well!! that’s a decent growth figure. I m just hoping the poor old lady in the village will be able to see benefit of this.
If the old lady in the village does not do anything to better herself, she will get nowhere even if Zambia becomes the richest nation on the planet.
Dr.Gondwe,how much is remainig in our Current Acount(Reserves)? Those Economic outlooks are yours,please let me know sir!!
I agree with you # Mezerf Flats ,i heard there was more than $2billion in our reserves as at 31 December 2011,any increase or decrease as at 31 December 2012 Dr.Gondwe?
Dr Gondwe you risk being called names, how come your figures are not reflecting in society ??
This is the type of news that the Zambia watchdo-g don`t publish unless if the opposite was true or if there are rumours of Sata being ill.
How true is this?? Don’t just accept figures when the truth is right before your eyes
Yes because ZWD knows those fake digits means nothing to the ordinary citizen, being clever doesn’t mean you are wise, if you route all your reserves inflation kicks in no wonder things have become expensive in zambia now PF in 16 months have routed our reserves and use it to buy opposition MPS. Exchange rate £1=k 8500 MMD left it at 7500
Don’t lie to excite the public,the only thing that has grown to such percentage is the pockets of Sata’s relatives and the madam’s who have been appointed to every post in Zambia and the Foreign Service. If you want me to believe you tell us about the growth of the Reserve Bank since PF came into power.THY SHALL NOT CHEAT GOD’S CHILDREN OR ELSE THE WRATH OF GOD WILL BE ON YOU.
Doctor, people will not appreciate the so called economic growth. What people want to see is good road network, medicine in hospitals and above all, availability of meal mealie in all shops at affordable price. We used to hear those growths during RB’s rule, but they didnt translate into anything apart from corruption.
Have you ever seen a road being constructed in an hour? Don’t you watch television to see how many roads are being constructed? The link Zambia project, Chingola Ktwe dual carriageway etc.
What do you expect from an ***** like this one. He never dreamed to be on this position. What 7.3% my foot.
Surely the impact of the Economic Growth is not reflective of what is felt by the common person in Zambia,with high Meali-meal prices sky rocketting!
Economic growth withount tangible results,maybe it is due to the Euro-bond.
@ Kalindula,
I agree with your comment. The growth in the economy must be reflected in improved living standards of the people particularly the rural dwellers. These cooked-up figures are only fine for UNZA economics student’s text book.
Some zambians dont want anything positive about zambia it hurts them that things are looking up go zambia go
Visit Zambia and tell us what you see positive or ask your relatives-NOT THOSE IN POWER- how they manage their high costs of living. Then come and share with us if everything is o.k with them
I bet you were not as positive when the economy was growing under RB. At least we know how much the price of mealie meal was under RB’s tenure.
As man thinks so is he. Men and women who condition themselves to be losers will always be losers no matter what.
I would care less, because there is no effect is there really to the masses of people that are suffering
This man looks tool, why don’t they make ministers in their 30′s energetic with a 20/10 vision
I would love to see a retirement age in politics.
AT 27 I think I can do a better job than most of these ‘have beens’
Thanks
No comment…but again its sad to see to many bloggers fuming here,asking questions they already have answers to..havent you learnt..? since you started blogging what has really changed..huh..? anger and not accepting the situation at hand an then wish it was a different government will so not help neither you nor I..so guys, how about we come up with solutions rather than condemn..? it will help a great deal. But like I said, No comment…
Interesting report Dr. I have difficuties reconciling: The report say mining declined by an estimated 13.2 percent mainly due to a fall in metal mining but GDP grew still by 7.3%? What is the percetage composition of mining to last year’s GDP?
Then truly mining sector can be replaced!! Also you report that agriculture will do well this year when we have seen shortages of the stable food-maize, that caused prices of maize meal to go up to as high as 75 KR and 90KR in some places. The farmers this year have experienced difficulties in accessing inputs and still you say the economy will grow by 7%?
The currency is at its weakest, the reserves have dwindled and inflation is higher than last year but GDP is the best in years???? Interesting indeed!
VERY INTERESTING INDEED. I ALSO DIDNT REALIZE THAT IN ONE-YEAR OF PF IN POWER WE HAVE GOTTEN AWAY FROM COPPER DEPENDENCE (WHICH WE HAVE DEPENDED ON SINCE INDEPENDENCE) THAT EVEN WITH A HUGE (13.2%) DECLINE WE MANAGED TO GET A 7.3% INCREASE GDP FROM OUR NOT WELL PERFORMING SECTORS SUCH AS AGRICULTURE AND CONSTRUCTION (MINE STONE).
FOR SURE THESE ARE DOCTORED RESULTS
ONE NEEDS TO CHECK GONDWE’S PhD DISSERTATION. HE SHOULD HAVE DOCTORED SOME FINDINGS OR PLURALIZED, LIKE THAT GERMAN MINISTER. HOW CAN YOU DOCTOR NATIONAL INDICATORS LIKE THIS?…FUNNY COUNTRY WITH FUNNY CHARACTERS.
Ladies and gentlemen economics is quite complicated no wonder people spend years studying it.Doesn’t it surprise you that despite China and America being among strongest nations in the world economically still has a lot of poor families? It is not easy to see the difference or change on the ground in a fortnight.So if you were hoping to see a change in Chola your neighbor and his Katemba business then think again.
WHAT ABOUT DAY-TO-DAY INDICTORS LIKE THE CURRENCY? CANT THEY REFLECT THE PERFORMANCE OF THE ECONOMY? YES THERE ARE A LOT OF POOR PEOPLE IN AMERICA, BUT DAY-TO-DAY FOOD PRICES REFLECT HOW THE ECONOMY IS DOING. I AM NOT AN ECONOMIST, BUT I SHOULD EXPECT AT LEAST MY COST OF LIVING TO GO DOWN IF THERE IS AN IMPROVEMENT IN THE ECONOMY.. NOT SO DR. ECONOMIST?
perhaps i need to be diagnosed with ADD but cudn’t bring myself to read yet another looooong article..but it was the appearnce of aa sekulu aba ba Gondwe which i found absolutely distracting…aa sibweni aa Sata really how do u pick them?hmmm awe vyakulolavye…i digress
still the same results like before- economy growing but poverty and unemployment remain the highest, i agree with Mushota these old age people need to retire so the young energetic can have jobs too.
7 percent economic growth is not enough. we need a double digit growth for the impact to be felt like in china and these other emerging ecomomies.
It is not about the figure doubling for you to see benefits. If the economy grows by 15 percent in 2013 and it is spurred by mining (which are foreign owned), and who contribute minimally to the treasury, what benefit wouldthat growth be. The key is SECTOR TARGETED growth. Pick agriculture. It contributes about 20 percent to GDO and employs 80 percent of the people, though the employment is largely informal, therefore people are poor. If you stoo paying lip service to agriculture, commercialise it and improve productivity, you will wipe out povertu and the economic growth will begin to make sense. We spend billions subsidising fertiliser and rich farmers at the expense of the poor farmers. The chinese did it, we can also do it
7.3% would be very good if it was true, sadly its a fabrication, the real figure is around 2%.
Calculating GDP is a complex process. Just because your gut feeling tells you it is 2 percent doesnt mean it is correct.
Effective 1 March, Cavmont is introducing a K15 cash withdrawal charge over the counter…..Smells like theft to me. Was this sanctioned by BAZ or BOZ. What justification is there that has not been there the past 40years Zambia has been doing banking? You save, you are charged..Now when you withdraw, you are also charged.
By the way, this was in the Zambia Daily Mail in October last year “Cavmont Bank has recorded a loss after tax of K5.2 billion for the six months period ending June 30 owing to declining lending margins experienced by the banking industry.”
Are they making us pay for their losses?
Zambians, we need to act against this daylight robbery.
My brother, it is a bank, not a charitable organisation. So their prime interest is profits. While I believe the concetns are justified, I think there is disconnect between monetary and fiscal policies. The Bank of Zambia wants the banks to reduce their interest rates but the Ministry of Finance is not giving any tax incentives. So they are bound to find other ways of staying afloat. And their minimum reserve requirements have been increased to $20 and $100m. So there
I find that hard to believe. Look at what CSO are saying abt inflation. what has made inflation drop in 2013?
Fabricated figures. Again Zambians will only realise they are being cheated after 5 years. just how does someone tell you that your food has become cheaper when each time you go to the shop you find prices have gown up?
Sorry am ain’t buying this for now
M e too. This governor is like a puppet.
If there is a general drop in prices, that will be DEFLATION. We have never experienced that before, so I dont get your argument. We have always experienced INFLATION, which is a general RISE in prices of conmodities.
Lets break it down pls.when u build a house or buy a used car from Japan u are contributing to this GDP growth.we shud b happy our economy is growing instead of sulking.
So this is the new strategy UNDP announced last week? They told us they would embarass Sata. After firing their first stink bomb they willl now see how childish or immature their strategy is. Character assasination on its own doesn’t win u votes. I was in Zimbabwe when Mugabe tried to employ it on morgan in the last election labellling him names such as sellout, cocoa nut High libido etc and it didn’t work. UPND think of a more People centred tactic.
It’s a good figure as long as as it’s in line with expectations but the Governor doesn’t tells us the monetary policy, trade balance year on year , quarter on quarter and month on month. One figure in a single period is raw data at best. How is one suppose to analysis such data ? he better keeps it to himself .He should attribute the growth due to debt cancellation, Only God knows what happens when the Euro-Bond repayments starts. Those still looking for a better living standard that 7.3% GDP growth has already been discounted in your living standard.
Check the boz website for the full report.
GK, you should be on stage cracking ribs! I can’t remember the last time I laughed myself to tears. How very funny!
Even with this trumpeted growth we’re still a lowly number 105 on wikipedia for nominal GDP figures and in africa i suspect we still haven’t cracked to the top ten list in nominal terms.
You are right. We are far from the top 10 in Africa. Just to give you an idea, SA’s GDP is in excess of $500 billion, while Zambia’s is $20 billion…
People, people, people…hold your fire…if you want the full details of the Governor’s media brief, it is usually posted on the Bank of Zambia website (www.boz.zm). Equip yourself with facts to blog effectively. If you want detailed GFP figures, go to the CSO website(but the last time I checked, it wasnt working) That’s for the guy who stikl thinks copper is our mainstay. Go to Ministry of Finance and ZRA to find out the contribution of mining to the treasury. . Typical of Boma departments(. And please, GDP is a measure of output, not welfare. The relationship is not direct.
Statistics must guide policy. To maintain comparative advantage, it is advisable for BOZ and CSO to partner with UN,US, EU in data processing in order to guarantee high FDI flow.
Well it is good to hear that GDP growth is not just mining, which is of course mainly foreign owned.
” He urged the commercial banks to lower their interest rates further in line with the Bank of Zambia Policy Rate. ”
Let’s do more than ‘urge’. Let’s make their license dependent on them lending at least 30% of their business to SME’s at 5% interest rates or less.
Someone above says these statistics show that Zambia is looking up. That is only because its lying flat on its back!