Zimbabwe trade deficit worsens to $1.6bn in 4 months to April

Published: 10 July 2013

Zimbabwe's trade deficit in the 4 months to April widened to US$1.6 billion after it imported goods worth US$2.62 billion against exports of $1.02 billion.

According to statistics made available by ZimStat, the country imported mainly diesel, fertiliser, petroleum oils, motor cars, mobile phone handsets and accessories as well as foodstuffs including milk products.

The country's exporting base is mainly in the extractive sector, which includes industrial diamonds, nickel mattes and semi-manufactured gold as well as flue-cured tobacco.

In the period, the country imported diesel worth $266.02 million, ammonium nitrate of $22.14 million. Exports by the clothing sector have dropped significantly, especially to South Africa (at 5% from 18%) which means the trade balance is in favour of South Africa at 1:6.

Exports were made up mainly of minerals which included $177 million worth of gold, $45 million of unwrought platinum and $101 million of nickel concentrate. The country exported tobacco worth $100.43 million in the period.

The trade deficit with South Africa was at $529.6 million from imports of $1.273 billion and exports of $743.79 million. Trade with Mozambique was almost flat but marginally in favour of Zimbabwe at just under a $1 million at $910 288 from exports of $83.58 million and imports of $82.67 million.

Economists say the 2013 trade deficit is expected to widen to over $3 billion from $2.6 billion in 2012. This is mainly because the country is over-consuming, so much that demand spills over into imports while at the same the economy had become high cost because wages were rising faster than productivity. There is generally more importing activity in the second half of the year.
- herald

Tags: Tradedeficit,