STATE OF THE MEDIA REPORT QUARTER 4, 2020 Further, there was a reported slower decline in economic activity in the quarter under review than previous quarters while input costs increased sharply and staffing levels reduced, quickened in December from the rate seen in October at the beginning of the quarter. New orders decreased slightly as business conditions remained challenging and this was mainly attributed to the COVID-19 pandemic, currency weakness and a lack of money in circulation21. There were, also, reports of improved customer demand while companies raised their selling prices for the fourth month running as higher cost burdens were passed on to customers. In general, despite the bleak outlook posted by most economic fundamentals, there was an expected improvement in the economic activity in the quarter, with a softer deterioration in the private sector business environment. The economy was also still projected to contract at the rate of 4.2%, cushioned by the better performance recorded in mining production22. This economic outlook continued to affect the media sector negatively as witnessed in the previous quarters. The situation was exacerbated by the economic effects of the Coronavirus pandemic, despite partial relaxation of measures announced earlier. The media were mainly affected because they are heavily dependent on advertising revenue to support their operations and a reduction in economic activity entails a reduction in advertising by the producers of goods and services. As mentioned, the COVID-19 pandemic had socio- 21 According to the Stanbic Purchasing Manager’s Index released on 3 rd December, 2020. See https://www.stanbicbank.co.zm/static_file/Zambia/filedownloads/ZM_PMI_ENG_2012_PR.pdf 22 According to the Bank of Zambia Monetary Policy Statement issued on 18 th November, 2020. See https://www.boz.zm/monetary_policy_statement_november_2020.pdf P a g e 29 | 56