Lusaka - XINHUA
Zambia recorded an overall balance of payment support deficit during the first quarter of 2014, the country's Central Bank said on Friday. According to the Bank of Zambia, the Southern African nation recorded a balance of payment support deficit of 260.7 million U.S. dollars during the first quarter of 2014 compared to a surplus of 28.7 million dollars recorded during the fourth quarter of 2013. The Central Bank has attributed this to high deficits recorded in both the current and capital and financial accounts. The current account recorded a deficit of 118.8 million dollars compared with a surplus of 30.2 million dollars the previous quarter which was largely driven by a rise in income on equity and interest payments, the slowdown in services receipts and the decline in inflows in form of current transfers which were not fully compensated by the rise in merchandise trade. "Similarly, the capital and financial account recorded a deficit of 160.7 million dollars compared with a surplus of 12.7 million dollars registered the preceding quarter, largely due to the higher accumulation of foreign direct investment assets abroad by the private sector," the statement said.