HARARE: Zimbabwe’s trade deficit stood at $337.5 million in the month of July, 2015 as exports continue to lag behind imports due to subdued local production, latest statistics from the Zimbabwe National Statistics Agency (Zimstat) show.
Declining productivity in local industry, which is struggling with antiquated equipment and working capital constraints, has seen a sharp increase in imports over the years as locals bring in goods for resale and consumption.
According to Zimstat, Zimbabwe imported goods worth $563.7 million against exports worth $226.1 million, but July’s trade deficit was lower than that of June, which stood at $358.2 million.
During the same period last year, Zimbabwe recorded a trade deficit of $268.1 million. Despite the country registering a deficit in July, trade data shows that since May this year, exports have been registering steady growth, increasing much faster than imports.
Zimstat said for July exports grew by 14,8 percent while imports grew by only 0,15 percent, buoyed by increased production of key commodities including tobacco, gold and sugar. Major goods exported during the period under review included gold at $64.7 million and tobacco at $43.9 million.
Zimbabwe imported products including fuel and lubrication for $113.4 million, while other major imports included vehicles, medicine and medical equipment.
Some of the major export destinations included Mozambique, the United Arab Emirates and Zambia with exports of $51.4 million, $12.8 million and $8.9 million respectively. Source markets included China, Zambia, South Africa, Singapore and Hong Kong.
To help curb the widening trade deficit, Finance Minister Patrick Chinamasa in a mid-term fiscal policy review introduced various measures including banning importation, on concessional taxation, of uncritical goods such as second hand clothing and basic foodstuffs, which had crippled local industry.
He banned imports of second hand clothes, and raised duty on a wide range of basic foodstuffs and other goods locally available. The move, long sought by domestic industry, is intended to increase local productivity, and help reduce the country’s growing trade deficit.
