Intermediate Macroeconomics - Macroeconomic Data Zambia

Intermediate Macroeconomics - macroeconomics data

1. Intermediate Macroeconomics Fred Mukonda

2. Circular Flow of Income - The circular flow of income demonstrates how money flows through the economy between businesses, households, government, and the foreign sector. - Zambia’s exports of copper and imports of services are crucial in this flow. - Government spending on infrastructure and health services contributes significantly to the income flow in Zambia.

3. Stocks and Flows - Stocks: Zambia's foreign reserves, government debt, and natural resources (copper reserves). - Flows: GDP growth, foreign direct investments, and national income. - Copper exports and foreign investments are key drivers of flows in the Zambian economy.

4. GDP vs GNP - GDP (Gross Domestic Product): Measures the value of all goods and services produced within Zambia’s borders. - GNP (Gross National Product): Includes income earned by Zambians abroad minus income earned by foreigners in Zambia. - Zambia’s GDP is projected to grow by 4.7% in 2024.

5. GDP Deflator - GDP deflator measures price changes in all goods and services. - Zambia’s GDP deflator for 2023 was recorded at 8.9%. - It reflects inflationary pressures in the economy caused by currency depreciation.

6. Consumer Price Index (CPI) - CPI measures the average price change in a fixed basket of goods and services. - Zambia’s inflation rate increased to 15.2% by mid-2024. - The rise in CPI reflects higher prices for basic food items and energy.

7. Twin Evils: Unemployment and Inflation - Zambia faces significant unemployment, with only 31% of the working-age population employed. - Inflation has eroded purchasing power, contributing to slower job creation. - High inflation and low employment create significant challenges for economic stability.

8. References - World Bank. (2023). Zambia: Inflation and GDP Deflator Data. [Link](https://data.worldbank.org). - Lusaka Times. (2024). Zambia’s Economic Performance Analysis. [Link](https://lusakatimes.com).