STATE OF THE MEDIA IN ZAMBIA throughout both quarters by the ritual killings/gassing incidents as well as the outbreak of the Coronavirus (COVID-19) pandemic and the new normal. 3.2. Economic environment The media was not spared by the turbulence experienced on the nation’s economic front. Currency exchange volatility remained an issue of major concern during both quarters, with the Kwacha losing sharply against major convertible currencies by the close of the second quarter of the year35. This was against the backdrop of increased year-on-year inflation rates at the end of both quarters i.e. 14% in March and 15.9% in June36. According to the Bank of Zambia Monetary Policy Statement issued in May37, the country’s domestic macroeconomic environment worsened, having already been facing challenges prior to the outbreak of the Coronavirus (COVID-19) pandemic. The economy was projected to contract by at least 2.6% in 2020 which would be the lowest ever in twenty years, from a growth of 1.9% in 2019. Further underlying this scenario were projected contractions in specific sectors among them tourism, wholesale and retail trade, construction, manufacturing, mining and electricity. This prompted government to put in place measures aimed at absorbing the negative shocks experienced by the change in some of the economic fundamentals, particularly in view of the COVID-19 pandemic. Some of the measures38 included a K10 billion medium term refinancing facility meant to restructure, refinance or extend credit to businesses and households impacted by COVID-19 and issuance of a COVID-19 bond amounting to K8 billion as a stimulus package to enhance economic activity. On these measures, President Edgar Lungu, in a national address on the COVID-19 pandemic noted that: 35 According to Bank of Zambia historical series of daily exchange rates, the Kwacha opened at an average of K14 per Dollar in January and closed at an average of K18 per Dollar in June, 2020. See https://www.boz.zm/historical-series-of-daily-zmw-usd-exchange-rates-zmw.htm 36 According to the Monthly bulletins of the Zambia Statistics Agency at https://www.zamstats.gov.zm/index.php 37 See https://www.boz.zm/news-and-publications.htm 38 As announced by President Edgar Lungu in his national address on the COVID-19 pandemic on 25th June, 2020. Available at https://www.mof.gov.zm/?wpfb_dl=244 pg. 34