Front Matter Page
© 2006 International Monetary Fund
March 2006
IMF Country Report No. 06/118
Zambia: Selected Issues and Statistical Appendix
This Selected Issues paper and Statistical Appendix for Zambia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on December 23, 2005. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Zambia or the Executive Board of the IMF.
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Front Matter Page
INTERNATIONAL MONETARY FUND
ZAMBIA
Selected Issues and Statistical Appendix
Prepared by a staff team consisting of Patrick Akatu, David Dunn (both AFR), Birgir Arnason (PDR), and Alfredo Baldini (FAD)
Approved by the African Department
December 23, 2005
Contents
I. The Macroeconomic Impact of Scaling Up Donor Assistance: A Simulation Analysis
A. The Scaling Up Exercise
B. Macroeconomic Impact of Scaling Up
C. Sensitivity Analysis
D. Concluding Remarks
II. Fiscal Dominance and Inflation in Zambia
A. Introduction
B. Trends in Budget Deficits and Inflation
C. Fiscal and Monetary Dominance: Theory and Evidence
D. Fiscal or Monetary Dominance? An Impulse Response Analysis
E. Concluding Remarks
F. References
III. Recent Experience in the Implementation of Monetary Policy
A. Introduction
B. Fiscal Adjustment and the Monetary Policy Environment
C. Conduct of Monetary Policy
D. Conclusion
IV. Export Performance and Competitiveness
A. Introduction
B. Export Performance
C. Exchange Rate Developments
Long-Term sPerspective on the Real Effective Exchange Rate
Recent Developments
D. Business and Investment Climate
Access to and Cost of Financing
Taxes and Tax Administration
Bureaucracy and Regulations
Physical Infrastructure and Cost of Utilities
Corruption
E. Trade Policy Issues
F. Conclusion
Statistical Appendix Tables
1. Gross Domestic Product by Sector of Origin at Constant Prices, 1998–2004
2. Gross Domestic Product by Sector of Origin at Current Prices, 1998–2004
3. Gross Domestic Product by Type of Expenditure, 1998–2004
4. Index of Industrial Production, 1998–2004
5. Volume of Mineral Production, 1998–2004
6. Marketed Production of Selected Agricultural Crops, 1998/99–2004/05
7. Area Under Cultivation for Selected Crops, 1998/99–2004/05
8. Paid Employment by Economic Sector, 1998–2004
9. Annual Composite Index of Retail Prices, 1998–2004
10. Monthly Composite Index of Retail Prices, 2002–2004
11. Summary of Central Government Operations, 1998–2004 In billion of kwacha)
12. Summary of Central Government Operations, 1998–2004 In percent of GDP)
13. Summary of Central Government Revenues and Grants, 1998–2004
14. Summary of Central Government Expenditures, 1998–2004
15. Government Securities, 1998–2004
16. Monetary Survey, 1998–2004
17. Accounts of Commercial Banks, 1998–2004
18. Net Foreign Assets of the Banking System, 1998–2004
19. Structure of Interest Rates, 1998–2004
20. Balance of Payments, 1998–2004
21. Foreign Trade Volume and Unit Value, 1998–2004
22. Merchandise Exports, 1998–2004
23. Nontraditional Export Earnings by Sub-Sector, 1998–2004
24. Scheduled External Debt-Service Payments, 1998–2004
25. External Debt, 1998–2004
26. Nominal, Nominal Effective, and Real Effective Exchange Rates, 995: Q1–2005: Q3
27. Summary of Consolidated Foreign Exchange Market, 2003–05