In forecasts released over the weekend, the Zambia Ministry of Finance expects copper production to increase to 919,311 metric tons this year from 797,518 metric tons in 2019. In 2021 output is seen as reaching 928,504 tons. Meanwhile, a deficit of -1.5% is forecast for the budget’s primary balance while it is seen as being balanced in 2020. On the growth front, GDP is expected to be at 1.8% in 2021, 3.4% in 2022, and 3.6% in 2023. Finally, the exchange rate is seen as averaging 21 Kwacha/$ next year.
On the base metals front, copper has fallen further below the $8000.00/tonne mark this morning with the global bellwether for economic growth shedding some 0.6% to trade at $7938/tonne by 05.00am local time this morning. A stronger USD and rising COVID-19 cases across the globe providing the trading angle this morning, it would seem that base metals are adopting a wait and see approach to the news of the US stimulus package.