The Economic Association of Zambia (EAZ) has observed that the drop in commodity prices on the international market will affect Zambia’s export earnings and may subsequently affect the revenue earned from the export of minerals.
Speaking on QFM newa EAZ president Isaac Ngoma said that the slowdown in China’s economy will also impact Zambia’s economy negatively as the country exports nearly all its copper to China implying that the foreign exchange inflows will be reduced.
Mr. Ngoma further noted that the drop in commodity prices on the international market have a direct bearing on the operations of the mines and that if the down trend continues it may impact on their investment decisions which have far reaching implications on the countrys economy.
The EAZ president explained that this is the reason why the government should be cautious in the way it manages the economy so as to cushion external shocks.
Some of the world’s largest Mines such as BHP Billiton have reported lower profits of about 15% due to the drop in commodity prices on the international market.
[QFM]
Rarely heard of this Association talk or write about upward trend in economic affairs of the nation. Is it only about negative reporting? Be up beat and give motivation. Why only focus on dooms days looming. Inspire the nation with positives, it changes people’s mental sets. A witch only know how to bewitch but no cure. Do not be like them. Work on your mental sets. Talk of sky rocketing of national prosperity and not only get stuck in mud.
THE ONLY GOOD THING ABOUT ECONOMICS IS:
IT GIVES JOBS TO ECONOMISTS. NOTHING ELSE. PARASITES?
Economics has created 000’s of jobs,created countless firms and secured comfortable retirement for millions.The best economists last yr were David Tepper (earned $2.2bn)Carl Icahn ($1.9bn) and Steven Cohen($1.3 bn).Economics is the best carreer in terms of earnings.
Maybe that’s the reason govt is borrowing heavily to cushion the external shocks…..lol but seriously can somebody stop this borrowing.You have been forewarned
US$/tonne) for 21 August 2013
Official price
Aluminium 1,852.50
Aluminium alloy 1,770.00
Cobalt 27,250.00
Copper 7,236.00
Lead 2,220.00
NASAAC 1,810.00
Molybdenum 20,600.00
Nickel 14,450.00
Steel billet 150.00
Tin 22,025.00
Zinc 1,936.50
Reduced exports earnings are not unexpected really because all the focus has been on electioneering ,witch hunts and petty politics.Sad PF legacy.
It would be good to offer solutions too. Take a leaf from other Economics Associations in the world. It is not good enough to say Government has to be careful because that is just stating the obvious.
Heard of the Gartner Group? Renowned financial analysts that shake and move the markets when they give an outlook on trending of an organisation or the econonomy in general. Therefore, don’t shoot the messenger but take heed and spend wisely our little hard earned bread!