Business / Economy
Zimbabwe's trade deficit widens
05 Jul 2013 at 04:41hrs | Views
ZIMBABWE'S trade deficit for the four months to April widened to US$1,6 billion after the country imported goods worth US$2,62 billion against exports of US$1,02 billion.
According to statistics released by ZimStat, South Africa was the country's main source of imports constituting 48 percent of the total imports. Imports from the United Kingdom constituted 17 percent of total imports, China contributed 6 percent and the United States and Zambia contributed 4 percent each.
The main imports were fuel, fertiliser, petroleum oils, motor cars, mobile phone handsets and accessories as well as foodstuffs including milk products.
In the period, the country imported diesel worth US$266,02 million, a decline from the US$283,62 imported in the first quarter of 2012.
Ammonium nitrate worth US$22,14 million was also imported during the same period. The number of vehicles brought into the country doubled in the four months compared to the first four months of 2012.
A total of 40 578 vehicles were imported in 2013 compared to the 20 184 imported last year.
The trade balance is still in favour of South Africa at one to six as exports from Zimbabwe to South Africa continued to go down while imports went up.
Exports to South Africa in the clothing sector dropped to 5 percent from 18 percent .
The country's exporting base includes industrial diamonds, nickel mattes and semi-manufactured gold as well as flue-cured tobacco.
Zimbabwe mainly exported minerals which included US$177 million worth of gold, US$45 million of platinum ore and US$101 million of nickel concentrate and US$100,43 million of tobacco.
Analysts forcast the trade deficit to continue to widen to over US$3 billion by the end of the year from US$2,6 billion last year due to the country's increasing consumer demand that the local industry is failing to meet to due to viability constraints.
According to the World Bank's Interim Strategic Note released last week, Zimbabwe's imports could rise to 63 percent of dross domestic product in 2013 from 55 percent in 2009, while import cover is now down to 20 percent.
Market analysts believe Government needs to improve trade incentives, especially for the manufacturing sector, to reverse the trend.
Government has indicated that it is targeting to increase export earnings by at least 10 percent annually from US$4,3 billion in 2011 to US$7 billion in 2016.
According to statistics released by ZimStat, South Africa was the country's main source of imports constituting 48 percent of the total imports. Imports from the United Kingdom constituted 17 percent of total imports, China contributed 6 percent and the United States and Zambia contributed 4 percent each.
The main imports were fuel, fertiliser, petroleum oils, motor cars, mobile phone handsets and accessories as well as foodstuffs including milk products.
In the period, the country imported diesel worth US$266,02 million, a decline from the US$283,62 imported in the first quarter of 2012.
Ammonium nitrate worth US$22,14 million was also imported during the same period. The number of vehicles brought into the country doubled in the four months compared to the first four months of 2012.
A total of 40 578 vehicles were imported in 2013 compared to the 20 184 imported last year.
The trade balance is still in favour of South Africa at one to six as exports from Zimbabwe to South Africa continued to go down while imports went up.
Exports to South Africa in the clothing sector dropped to 5 percent from 18 percent .
The country's exporting base includes industrial diamonds, nickel mattes and semi-manufactured gold as well as flue-cured tobacco.
Zimbabwe mainly exported minerals which included US$177 million worth of gold, US$45 million of platinum ore and US$101 million of nickel concentrate and US$100,43 million of tobacco.
Analysts forcast the trade deficit to continue to widen to over US$3 billion by the end of the year from US$2,6 billion last year due to the country's increasing consumer demand that the local industry is failing to meet to due to viability constraints.
According to the World Bank's Interim Strategic Note released last week, Zimbabwe's imports could rise to 63 percent of dross domestic product in 2013 from 55 percent in 2009, while import cover is now down to 20 percent.
Market analysts believe Government needs to improve trade incentives, especially for the manufacturing sector, to reverse the trend.
Government has indicated that it is targeting to increase export earnings by at least 10 percent annually from US$4,3 billion in 2011 to US$7 billion in 2016.
Source - herald
