In 2019, 6% of Spain’s energy imports (4.5% of total energy consumption) came from Russia, but this figure is much higher for countries such as Germany (17%) and Italy (22%). 2 In 2019, Spain’s exports of goods to Russia and Ukraine accounted for 0.7% and 0.2%, respectively, of its total goods exports, while the figures for the euro area were slightly higher, at 1.6% and 0.3%, respectively. 2  certain production processes could be significant, particularly in the context of trade and financial sanctions. iii. Finance. Although direct financial exposure to Russia and Ukraine is generally very limited among European firms and banks (especially, once again, among Spanish ones), since the beginning of the conflict financial market volatility has increased and financing conditions have tightened. In particular, euro area stock markets have fallen sharply, especially in Germany and Italy which both have greater relative exposure to Russia. Capital market financing costs for financial and non-financial corporations have also risen. And all this, in addition to the notable uncertainty about the possible medium and long-term implications of the exclusion of the Russian economy from international financial channels which could, for example, result in the growth of more opaque alternative financial channels or mechanisms. iv. Confidence. Lastly, the war in Ukraine is doubtless having an adverse effect on economic activity, owing to the difficulties economic agents are having foreseeing future economic developments, in particular the future path of their own incomes.

Without their support, it would have been very difficult to complete this phase of the Survey. Distinguished Guests, As you are aware, the Zambian economy has recorded significant positive developments in the recent past, owing to the wide-ranging economic reforms the Government has been implementing since 1992. The reforms, which are aimed at stabilising the economy and supporting economic recovery for the purpose of reducing poverty among our people, have facilitated increased investment in various sectors of the economy, such as, agriculture, tourism, construction and manufacturing. As you may also be aware, the mining sector has attracted unprecedented amounts of investment in the recent past. Government’s economic reforms since the early 1990s have contributed immensely to the boosting both local and foreign investors’ confidence in the Zambian economy, which is an important pre-requisite for attracting capital flows. The survey findings that we are disseminating today indicate that Foreign Private Capital flows to Zambia in 2007 rose to US $ million from the US $ million recorded in 2001. The 2007 inflows were largely in form of foreign direct investment, borrowing from nonaffiliates (Loans and Trade Credits) and portfolio investment. We believe that the introduction of economic reforms led to a substantial increase in private capital flows, which regrettably, we have not been able to capture on a regular basis due to budgetary constraints. Mr. Chairman, History has taught us that high volatility in private capital flows, if not properly monitored and managed, can induce financial and macro-economic instability in the domestic economy.