Falling Copper Prices, China’s Slowdown Put Pressure on Zambia’s Economy

Falling Copper Prices, China’s Slowdown Put Pressure on Zambia’s Economy
Chinese President Xi Jinping, right, talks with Zambian President Edgar Chagwa Lungu, during a signing ceremony at the Great Hall of the People, Beijing, China, March 30, 2015 (AP photo by Feng Li).

Editor's note: This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on resource-exporting countries.

Zambia’s economy, which relies heavily on copper and its derivate products, is coming under strain as commodity prices drop and foreign investments wane. Worse, China’s economic slowdown has also weakened Zambia’s growth, as the two countries are close trading partners. In an email interview, Irmgard Erasmus, a fixed-income economist at NKC African Economics, discussed the risks for its economy.

WPR: How important are commodities for the Zambian economy, and what effect have falling commodity prices had on Zambia’s economic growth?

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