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Zambia’s Economy Rebased, Grows By 25 Percent

Zambia’s Economy Rebased, Grows By 25 Percent

The economy of Africa’s largest copper producer just grew by 25 percent or $16.7 billion after Zambia changed the year on which it bases its gross domestic product from 1994 to 2010, AFP reports.

Africa’s most populous country, Nigeria is also due to rebase its economy later this
year. When that happens, the top oil-producing country is expected to show it has overtaken Africa’s top economy — South Africa.

“According to the benchmark estimates the GDP for 2010 is estimated at 97.2 billion kwacha ($16.7 billion),” Central Statistical Office Director Goodson Sinyenga said in a statement. “The new estimates are 25.2 percent… higher than the old…”

Wholesale and trading business contributed most to Zambia’s newly-rebased economy in 2010, accounting for 18.4 percent, AFP reports.

The informal sector — businesses that are not paying taxes, not monitored by government and usually not included in the formal economy — was included in Zambia’s rebasing, according to the report. It accounts for most of the GDP at 33.6 percent, the report said.

Mining, construction and agriculture each contributed 10 percent.

Zambia now includes information and communications technology (ICT) in its
measure of the economy.

Africa’s largest copper producer removed three zeros off the national currency in 2013 to address high inflation, AFP reports.