Zimbabwe's import bill drops $1.8 billion

The country's appetite for imports dropped by more than US$1.8 billion during the just ended year on the back of falling consumer demand and tight import controls gazetted by the government.

Statistics from the Zimbabwe National Statistics Agency (Zimstat) made available to the ZCBC News on Thursday indicate the country's import bill dropped from US$1. 8 billion in 2015 to US$6.2 billion in 2016.

The data also indicate Zimbabwe exported goods and services at a value of at least US$3.5 billion thereby creating an average trade deficit of US$3.3 billion, the major exports included tobacco, gold and platinum.

The nation experienced a huge drop on imported vehicles, consumer goods, groceries, household commodities, agro-processed foods and milk products among others.

An economist Mr Zack Murerwa says the tight import controls had a major bearing on the downward trend within the import volumes and financial outflows.

"We hope the trend will continue and it will translate into positive outcomes for this economy in the short to long term,"said Mr Murerwa.

According to Zimstat Zimbabwe's major export markets consist of South Africa, Mozambique, United Arab Emirates, Zambia, Belgium and Botswana.

The country also sourced its imports mainly from South Africa which accounted for 35.8 percent, Singapore 24.7 percent, China 9.5 percent, Zambia 5 percent, Mozambique 3.5 percent and Japan 3 percent.

Market watchers say Zimbabwe's export volumes and revenues were subdued during the just ended year due to low production, lack of competitiveness and the general drop in global commodity prices.