This Selected Issues paper and Statistical Appendix examines the economic developments in Zambia during the 1990s. Economic activity recovered significantly in 1996. Real GDP expanded by almost 61/2 percent, compared with a cumulative decline of 121/2 percent in 1994-95. Good rains stimulated agricultural production, while the other nontraditional and mining sectors also contributed to the turnaround in economic activity. However, owing to a sharp deterioration in the terms of trade, largely on account of falling copper prices, real national income increased by only 2 percent.