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Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S trade deficit dropped by 14 percent to $322, 8 million in the first quarter compared to $380 million during the same period last year.
The decline in trade deficit is largely attributed to tight import control regulations by the government.
Latest trade data from the Zimbabwe National Statistics Agency (Zimstat), show that between January and March, imports from Singapore were greater than from South Africa. During the period under review, goods worth $165,5 million from Singapore entered the country while $161,5 million worth of goods from South Africa came into Zimbabwe.
Although Zimbabwe imported more from Singapore than from South Africa, Zimstat figures show that the latter remains the country’s biggest trading partner.
Trade between Zimbabwe and South Africa stood at $785 million from $689 in February.
Zimbabwe exported goods worth $129,9 and imported goods valued at $161,5 million from the neighbouring country leading to a trade deficit of $31,6 million from last month’s trade surplus of $59 million.
Other countries topping the import list include China, the United Arab Emirates (UAE), United Kingdom, Japan, Mozambique, India and Botswana.
During the period under review, major imported products included dried fish, milk and other dairy products as well as fresh water, crude oil, vehicle accessories, maize, petroleum products and electrical energy.
Zimbabwe’s major exports are minerals and agricultural products.
The country’s trade deficit has been widening due to low industrial capacity utilisation, which has seen the country depending largely on imported products mainly from South Africa and the Far East.
According to the Confederation of Zimbabwe Industries, capacity utilisation in the manufacturing sector last year closed the year at 34,3 percent due to factors that include tight liquidity, obsolete equipment, stiff competition from imports and power constraints.
Online Reporter