This paper monitors the effects of the global financial crisis in Zambia. It traces the impact of the crisis through its effects on four main transmission paths, namely: private capital flows, trade, remittances and official development assistance (ODA). The study finds that, although the effects of the crisis have continued to be felt in Zambia, the situation eased somewhat during the second and third quarter of 2009, in line with global trends. ODA and remittances have not been affected by the crisis. Moreover, the country’s current account balance and overall balance of payments position moved from a deficit during the first quarter to a surplus during the second and third quarters of 2009. The overall effects of the crisis are generally easing and the country is expected to grow at pre-crisis levels.
Manenga Ndulo, Dale Mudenda, Lutangu Ingombe and Frank Chansa