The 2009 Annual Economic Report reviews the country’s economic performance and future prospects. Among others, the report targets different stakeholders and partners in economic development through policy making and is meant to stimulate discussion and change.
Developments in the economy during the first half of the year were mixed. On the positive side, mining activity was buoyant, aided by high metal prices, resulting in an increase in export earnings. In addition, fiscal performance was on track with revenues overperforming. However, there were strong inflationary pressures during the review period, which mainly emanated from high food prices.
The Zambian economy faced a number of challenges in 2008, arising from both external anddomestic sources. With regard to the former, record high international oil and food prices wereexperienced during the first half of the year, followed by the slump in global commodity prices,including that of copper, which is the country’s main export earner. On the domestic front,execution of the budget was difficult arising from unanticipated expenditures.
World economic growth in 2007 continued to be strong, albeit slower than in 2006. Real Gross Domestic Product grew by 5.2 percent, down by 0.2 percentage points from 2006. China, India and Russia were the main drivers of global activity, jointly accounting for one-half of output. Other emerging and developing countries also experienced robust expansion.
The global economy continued to grow in 2006, registering a growth of 1.5 percent compared to 4.3 in 2005. This growth was led by the United States, the euro area and Japan. Additionally, continued growth in emerging markets and developing countries added impetus to world output.