State of the media report Q1-2021 ANNUAL INFLATION RATE-MARCH 2020-MARCH 2021 (%)15 Notable during the quarter, also, was an accelerated reduction in output and new orders while companies raised their output prices and continued to lower staffing levels, mainly due to difficulties in paying workers16. On the other hand, though, a few possibly positive developments were noted with likely impact on the economic state of the media also. For example, market interest rates continued to trend downwards while domestic real GDP was projected to recover as supported by positive growth in mining, electricity, gas and water as well as the information and communication sectors17. While a less severe contraction was expected, a weak recovery was projected in the medium term mainly owing to the uncertainty around the resurgence of COVID-19 infections and the narrow fiscal space which could pose significant downside risks to the growth outlook above. The media continued to bear their share of the brunt of the uncertain economic outlook and negative performance. This is mainly because media houses rely on advertisements from corporates and FCMGs as their source of revenue; the companies as indicated in the variables monitored above were forced to make certain cutbacks during the quarter owing to the harsh economic environment. As 15 Source: Zambia Statistics Agency (ZAMSTATS) Monthly Bulletin, March-2021. 16 The Stanbic Purchasing Manager’s Index published on 21st February reported this and other observations, read more at https://www.stanbicbank.co.zm/static_file/Zambia/filedownloads/ZM_PMI_ENG_2102_LITE.pdf 17 As monitored in the Bank of Zambia’s Monetary Policy Committee Statement following a meeting held on 15th-16th February. See https://www.boz.zm/monetary_policy_committee_statement_february_2021.pdf 24