Zim in $1,1bn trade decifit

By The NewsDay | Jun. 21, 2016 | 2 Min read

THE country’s trade deficit for the five months ending May 31 was $1,1 billion on the back of a surge in imports and falling exports.

BY TARISAI MANDIZHA

Information released by the Zimbabwe National Statistics Agency (ZimStat) recently shows that imports for the five months to May totalled $2,07 billion.

Exports during the period were $948 million.

The exports in the period under review included furniture, tobacco and other agricultural produce, as well as wines and minerals.

Imported products included maize, wheat, oil cake and rice, soya beans, flour, tomatoes, apples, grapes, vegetables, carrots, lettuce, peas, beans and lemon among other things.

According to Zimstat, there was an increase of 16% in month on month imports in May to $413,6 million from $356,4 million

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In May, exports grew by 5% on month to month to $165,3 million compared to $158 million in April 2016.

The government has predicted a $3 billion trade deficit for the whole year. Imports were projected to decline marginally from $6,3 billion in 2015 to $6,2 billion this year, while exports were expected to grow to $3,7 billion this year from $3,4 billion projected last year.

In 2014, Zimbabwe registered trade deficit of $3,3 billion, while in 2013 it was $4,19 billion.

Recently, ZimTrade noted in a report that Zimbabwe’s huge trade deficit continues to widen, due to low exports and a growing import bill, made up mostly of consumer goods.

Estimates from the Reserve Bank of Zimbabwe showed that in 2015, Zimbabwe exported manufactured goods worth $475,2 million, 7% lower than in 2014.

The fall in international commodity prices hit Zimbabwe’s overall export figures, as minerals constitute the bulk of the country’s exports.

Value added or manufactured exports, which normally fetch higher earnings, performed poorly during the same period as industry continued to struggle.