May trade deficit narrows

23 Aug, 2019 - 00:08 0 Views
May trade deficit narrows

eBusiness Weekly

Golden Sibanda
Zimbabwe’s trade deficit narrowed 33 percent to US$93,6 million in May 2019, from US$139,7 million in April 2019 amid tighter US dollar crunch.

Figures from the Reserve Bank of Zimbabwe show that the contraction came on the back of a 23,9 percent increase in exports to US$343,2 million.

This also comes as the intermittent drop in value of imports last year became most pronounced in October; hitting a record low in March this year.

“The increase in monthly merchandise exports was largely on account of higher export revenues from nickel; gold; flue-cured tobacco; industrial diamonds; and Jewellery,” the RBZ said in its monthly report.

Zimbabwe’s main exports were gold, nickel mattes, nickel ores and concentrates, ferro-chrome, flue-cured tobacco, industrial diamonds, jewellery, chrome ore, concentrates, unwrought platinum and cane sugar.

The country’s top five merchandise export destinations were South Africa (41,8 percent), the United Arab Emirates (18,9 percent), Mozambique (7,3 percent), Belgium (2,6 percent), and Zambia (1,7 percent).

“The increase in monthly merchandise exports was largely on account of higher export revenues from nickel; gold; flue-cured tobacco; industrial diamonds; and Jewellery,” the RBZ said.

Merchandise imports stood at US$436,8 million for the month of May 2019, a 4,8 percent increase from the US$416,7 million recorded in April 2019.

In terms of proportions of imports, diesel accounted for 15,9 percent, unleaded petrol, 7,6 percent; and medicines, 1,2 percent of total imports.

South Africa continued to dominate the country’s major import sources at 38,2 percent of total imports, followed by Singapore (27,9 percent), China (7,4 percent), Mauritius (3 percent); and India (2,3 percent).

Earlier, trade promotion body Zimtrade said the trade deficit for February to May 2019 decreased by 71 percent to US$325 million from US$1,1 billion last year.

Total exports for the four months to May amounted to US$1,3 billion, 3 percent increase from US$1,2 billion recorded during the same period last year.

However, during the month of May 2019, total merchandise trade increased by 12,4 percent to US$780 million, from US$693,7 million realised in the previous month on account of growth in exports and lower imports.

The increase in exports in May was largely underpinned by the significant increase in exports, as well as marginal increase in monthly imports.

Zimbabwe imported US$6,3 billion worth of goods in 2018, down 1,9 percent since 2014, but up 26,1 percent from 2017 to 2018 while the country shipped US$4 billion around the world in the same period.

The southern African country’s exports are mostly low value unbeneficiated minerals and agricultural exports, but the Government has adopted a policy to add value to increase premium on the exports.

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