Zambia attained favorable Balance of Payments in second quarter of 2014

Preliminary estimates indicate that Zambia attained favorable Balance of Payments (BoP) performance during the second quarter of 2014.

An overall surplus of US $740.1 million was recorded compared with a meagre surplus of US $8.4 million, recorded during the first quarter. The performance was driven by improvements in the financial account.

Commenting on the Balance of Payments estimates, Secretary to the Treasury Fredson Yamba has said in the period under review, a capital and financial account surplus of US $805.6 million was recorded compared with a surplus of US $50.1 million registered in the first quarter.

Fredson Yamba

Mr. Yamba has said that during the second quarter of 2014, merchandise imports, at US $2,160.7 million, were 5.4% higher than US $2,050.8 million recorded the previous quarter, largely due to lower import bills associated with commodity groups such as, petroleum products, paper and paper products, industrial boilers and equipment, food items and motor vehicles.

The Secretary to the Treasury has also disclosed that merchandise export earnings marginally increased to US $2,439.0 million, from US $2,423.2 million recorded in the preceding period.

Mr Yamba says a rise in both non-traditional export earnings (NTEs) and cobalt exports is responsible for this outturn.