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Balance of Payments and International FDI Position in Zambia: FY2019/20

Balance of Payments and International FDI Position in Zambia: FY2019/20

Balance of Payments and International FDI Position in Zambia: FY2019/20
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  • Last Updated Apr 22, 2020

Balance of Payments and International FDI Position in Zambia: FY2019/20

Zambian merchandise export earnings have been have been recovering from the period of low commodity prices from 2014 to 2016. The recovery export earnings has not been sufficient to improve deteriorated Zambia’s current account balance. The balance of payments has improved but gross official reserves have decreased despite the persistent capital and financial account surplus and inward foreign direct investment (FDI) inflows. These capital flows have been adverse for Zambia’s balance of payments and deteriorated the country’s net international FDI position. Nonetheless, Zambia’s balance of payments is projected to recover to a narrower surplus, which is projected to support growth of gross official reserves in the medium-term.

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