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Saturday, August 8, 2020

Zambia’s economic growth slumped to 2.6 per cent in the first quarter

Economy Zambia’s economic growth slumped to 2.6 per cent in the first quarter

A man counts out Zambian kwacha 50 denomination banknotes in this arranged photograph in Lusaka, Zambia, on Thursday, Oct. 8, 2015. Zambian Finance Minister Alexander Chikwanda is seeking to restore confidence in the economy to help reverse the world’s worst currency performance, record borrowing costs and sliding growth. Photographer: Waldo Swiegers/Bloomberg
Zambia’s economic growth slumped to 2.6 per cent in the first quarter of this year, down from 3.2 per cent during the corresponding period last year, mainly driven by negative growth rates in the agriculture and transport sectors, CSO data reveals.

Although Central Statistical Office (CSO) data points out that the country’s gross domestic product (GDP) hit an estimated K61.1 billion in the first quarter of this year, compared to K54.4 billion during the corresponding period in 2017, year-on-year growth rates have slumped to 2.6 per cent, compared to 3.2 per cent over the corresponding period.

This means that Zambia’s economic growth rate of 2.6 per cent during the quarter under review has been the lowest since the final quarter of 2015, when growth at 1.8 per cent during that quarter was recorded.

“The year-on-year quarterly growth rates at constant 2010 prices show that the economy grew by 2.6 per cent in the first quarter of 2018 compared to 3.2 per cent in the first quarter of 2017,” CSO stated in June’s monthly bulletin released, Friday.

“The mining and quarrying industry contributed the highest to the first quarter growth with 1.4 percentage points, followed by the financial & insurance, information & communication and wholesale & retail trade industries with 0.9, 0.6 and 0.4 percentage points, respectively. The industries with the highest growth rates were information and communication (28.1 per cent), financial and insurance (26.6 per cent) and mining & quarrying (14.1 per cent).”

Analysis from the CSO’s National Accounts data reveals that negative growth rates were recorded in the agriculture, forestry and fishing sectors of -1.9 per cent, while the transportation and storage industries also contributed a negative growth rate of -0.2 per cent to the economy.

GDP is the total value of an economy’s domestic output of goods and services, typically in a fiscal year, and is one of the key indicators of economic growth.

30 COMMENTS

  1. It might slump further with the loss of 3 fire engines which flipped over.Africans are not dumb, but avegare IQ for Europe is around 100 and so is for Asia. But average IQ for Africa is usually stated 60–85, however, there are exeptions like myself.If you look at Africa, the birthrate is very high. Women have too many children they can’t afford to raise. They need to lower population growth. Adopting ONE CHILD POLICY is a very important step toward prosperity. If you compare China 40 years ago to the current China, you will see a huge improvement. If Africa adopt the OCP, the continent will be very different in a few decades just like China.

    • Things are rough in Zambia right now. The people are suffering due to Lungu’s PF00Lish theft & economic failures.
      The kwacha is just hanging by the thread. PF has been getting loans to prevent kwacha from bleeding. It’s payback time now. Next year Govt will start repaying principle amount plus interest on loans. They’ve just been repaying interest all these years. 2022 Euro-bonds repayment will also start. Brace yourselves for hard times bane.

      Where they get such economic policies leaves me shaking my head.

    • Just wait till loan repayment starts. That’s when you will see the true state of our economy.
      1. Overpriced contracts for the benefit of the few corrupt in leadership at the expense of the majority poor population
      2. All major contracts given to Chinese
      3. Selling of prime land and assets to Chinese
      4. A lazy, incompetent, insecure, greedy, self seeking group of leaders
      5. Contraction of loans at an alarming rate, for the purpose of financing corrupt deals
      6. No discipline in managing government resources
      7. A terribly corrupt civil service

      The country is in serious trouble.

  2. Here, it is not a question of being humble or what, the Economy is bad.People are staying one year without pay, contractors are not paid.How do you manage a country like that ? it is not correct.

    • And to add to our woes they now want to introduce a national airline – airlines are failing in most countries why would Zambia want to go that route !!! This government is bleeding the country dry and yet we sit and accept there policies and there theft without anyone standing up and saying WE ARE NO LONGER ACCEPTING YOU ! WE ARE TIRED OF BLATANT THEFT !

  3. Things are tough in Zambia; yes; wait till the loan repayment starts; i agree with you #JourneyMan

  4. Njimbu, Malinso, UPND cadre, BR Mumba, Zambian Citizen nabashala please come. Sharon it’s fine iwe ikala fye, you not normal, but aba naita, I know it’s an economic story not mentioning HH but just try and justify why economic growth is shrinking. Thanks.

    • Those of rats have scattered to take cover ….they don’t understand GDP……ss for Sharon she will appear scratching everywhere at the thought of HH…

  5. Zambia’s economic growth slumped to 2.6 per cent in the first quarter 

    Upnd cader: we are growing….numbers don’t lie atleast te zero ….njimbu what do you say….

    Njimbu: ahhhhhh ni 6.5 fe mudala….

    Ndanji: even in USA they have such growth…..

    Citizen: ni sonta fye…nafuti nafuti can HH get such numbers ?

    Sharon : where is HH , is he lying on a bed ?
    Upnd cader: Sharon , get your self together , where is BR mumba ?

    BR mumba: it’s axiomatic to record 2.6 let’s roll ……

    Upnd cader: eehhh…?

  6. The report says,in the same period GDP was K54.4billion (first quarter) and this year it has risen to 61.1billion,to me thats an increase of about 12% in GDP terms comparing the two quarters.I wonder why some people jump at the mention of gloomy figures without interpreting the other figures,the report however,says year on year growth.mind you we are remaining with 2nd,3rd and 4th quarter to be assessed. Thats my observation,ba sosa ba Mwisho

    • The illiterate ***** that is you have never heard of inflation or exchange rates so you believe the economy grew by 12%. what a lunatic who never saw the door of a classroom you are. Read the below again before you embarrass yourself:

      “The year-on-year quarterly growth rates at constant 2010 prices show that the economy grew by 2.6 per cent in the first quarter of 2018 compared to 3.2 per cent in the first quarter of 2017,” CSO stated in June’s monthly bulletin released, Friday.

    • Read the below sir before you waffle the way you have done:

      “The year-on-year quarterly growth rates at constant 2010 prices show that the economy grew by 2.6 per cent in the first quarter of 2018 compared to 3.2 per cent in the first quarter of 2017,” CSO stated in June’s monthly bulletin released, Friday.

  7. @Mwisho the key phrase is “constant 2010 prices”, which is used to converse the nominal GDP to real GDP. It adjusts for inflation.

    Caution: if you are a PF cadre, this explanation won’t make any sense.

    • @Sensible,i know you are elated by such figures without verification,check the CSO website and draw some reasonable conclusion and not the knee jerk reaction from the usual Up aND down disciples,have you noticed no one has taken responsibility for this piece of trash.

  8. The truth is that there is no growth even at constant prices. There must be some statistical witchcraft done to get the 2.6% growth. Everywhere you go its doom and gloom. The south African retailers (except supermarkets) that opened amid pomp and fanfare are shutting down one by one in the copperbelt. Must be the growth of the Chinese ka ma shops that we are calling growth. Cry our beloved Zambia.

    • The truth is what you see in your head – doom and gloom,figures don’t lie mwisho!,there is a positive growth of 2.6% and the retail sector was not even one of the 5 major contributors to this growth,check the major contributors ba muzo from CSO

  9. Let’s do it again! Journeys have sebacks. We can turn this Haround. When there are setbacks Animo Farm is all over the place, when they announce growth Animo Farm starts to doubt and finding excuse. The goodness is that no matter what happens, it will NEVER be president!

  10. HaTribes rejoice when there is a bad report for Zambia! You wonder which country they represent! South Africa?

  11. Animo Farm misreading! HaSpakata read this Hagain, Grade VII drop out!

    “This means that Zambia’s economic growth rate of 2.6 per cent during the quarter under review has been the lowest since the final quarter of 2015, when growth at 1.8 per cent during that quarter was recorded.”

    • AND WHEN RUPIAH BANDA HANDED OVER TO SATA, GDP GROWTH WAS AT 6.7%. IT TELLS YOU THE DIFFERENCE BETWEEN RUPIAH AND SATA AND THE DIFFERENCE BETWEEN MUSOKOTWANE AND CHIKWANDA/MUTATI. Zambians need to learn to respect people who are well qualified for the job.

  12. @Mwisho the bottom line is that the economic performance of Zambia is poor. A country with a population growing at 2.9 percent will see a falling per capita income if you grow the economy at less than 2.9 percent. It’s a mathematical fact.

    So we need to do better for all Zambians. Regardless of political inclination. Only large economies can afford to grow at 2.6 percent. For a poor country like Zambia this is dununa reverse.

    • I agree with you on this one,we need to grow above 3%,but the 2.6 is just for starters.In the 2nd,3rd and 4th quarter it may go beyond 4.5% or even 5%,according to the projections.Sensible,we should also look at the bright side of the stats such as the drop in inflation rate and a positive current account,these stats do indicate that we are not on the very wrong path all together.

  13. You spend $17 billion borrowed funds on infrastructure and record 2.6% growth ??

    By all accounts this is a let down ….

    Brace yourselves ba Zambia…..its going to be a dangerous crash landing…

  14. What growth are you talking about. It is actually in the negative. Just look around you and compare with five years ago there is no need even for statistics if you have eyes.

  15. PFools came on board 2011 and since then our economy has been on a nosedive.We unwisely threw out Rupiah Banda over fake corruption yet his economy was growing at 6.4% p.a

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