It is not for us to remind you that one of the attributes of being factual and accurate is to be able to verify information as much as possible. Ladies and Gentlemen, it is for this reason that the Bank of Zambia finds immense pride in organising this event, whose objectives are to interact with the media so as to: 1. Share information on the role and functions as well as operations of the Bank of Zambia in the Zambian economy;  2. Discuss recent developments in the Zambian and global economy; and  3. Provide an outlook on future economic and financial developments. Through this interaction, we also seek to clarify certain economic and financial terminologies that are frequently used in economic or business reporting. At this juncture, Distinguished Colleagues, allow me to outline the recent macroeconomic performance in Zambia and its projected outlook. The Zambian economy has recorded robust economic growth rates for over a decade now with GDP growth averaging at 6.4% in the last 10 years. This growth has been broad-based, extending beyond the mining sector to the agriculture, forestry and fisheries; manufacturing; construction; transport, storage and communications; and financial intermediaries sectors. In 2013 Zambia’s overall macroeconomic performance was generally buoyant relative to other countries in the region and the world economy in general. Real GDP growth was registered at 6.5 percent in 2013 from 7.3 percent in 2012. The growth was higher than 4.9% and 3.0% growth for sub-Saharan Africa and for the global economy in 2013, respectively.
Similarly, the Kwacha depreciated against the Pound Sterling and Euro by 3.6% and 8.3%, respectively. This was partly on account of the US dollar appreciation following the strengthening of the US economy during the latter part of the year. The Pound and Euro weakness moderated on the back of optimism that their economies would continue to rebound. The Kwacha, appreciated against the rand by 10.7% to an average K0.5596/ZAR, reflecting the slowdown in mining output, following continued labour unrest in the South African mining sector. In the first quarter of 2014, the Kwacha depreciated by 10.0% to K6.09 per US dollar. This development was largely attributed to a high demand due to a higher growth in imports relative to exports, as well as investor sentiments associated with the tapering of quantitative easing in the United States of America coupled with falling copper prices on the global markets. Similar weakening of currencies was observed in most emerging market economies such as Ghana, South Africa and Turkey. It should be noted that the Bank of Zambia has continued to implement a market determined exchange rate and has intervened in the market to smooth out volatility and accumulate reserves. According to a recent study conducted by Professor John Weeks of the University of London, there is strong evidence that, the Bank of Zambia’s participation in the foreign exchange market to minimise volatility in the exchange rate has in general been effective.