Zambian GDP contracted by -3 percent in 2020 due to COVID- 19, but showed a modest recovery of 4.0 percent in 2021. Inflation rose from 15.7 percent in 2020 to 22.1 percent in 2021. The kwacha depreciated by about 50 percent against the dollar in 2020, before appreciating by 21 percent since the last quarter of 2021. To moderate inflation and support growth, the policy rate was lowered from 10.25 percent in May 2019 to 8 percent in August 2020 and to 9 percent in November 2021. The current account surplus reached 12% in 2020 and 18.3% in 2021. International reserves were equivalent to 2.4 months of import cover at the end of 2020 and 5.5 months at the end of 2021, reflecting the SDR allocation of US$1.33 billion. (Download detailed Analysis Source : Report African Economic Outlook 2022 ; AfDB)
The Lusaka Securities Exchange (LuSE) has 22 listed companies, representing a market capitalization of $0.2 billion at the end of 2022. Between the periods 2017-2021, foreign direct investment flows into Zambia recorded declines from $1,107.5 million in 2017 to -$456.7 million in 2021. By 2021, the decline was 164%.
