Trade deficit tops US$557m

US$557,6 million.
According to statistics released by the Ministry of Finance, imports during the first quarter increased to US$1,5 billion, up from US$1,1 billion from last year.
At the same time, exports rose by 67,2 percent to US$1 billion during the same period, up from US$617,9 million.
But the continued dominance of imports versus exports meant that the balance of trade continued on a negative trail.
“The trade deficit, at US$557,6 million, has worsened during the first three months of the year when compared with the US$496,9 million deficit recorded over the same period last year,” read part of the ministry’s statement.
This was largely attributable to increased fuel import costs, coupled with higher costs on imports of raw materials and intermediate goods for industry.
Most imports comprised of motor vehicles, information and communication technology equipment, machinery, chemicals, fuel, and cereals, among others. Major exports were minerals and tobacco products.
Despite operational constraints mainly pertaining to a tight liquidity situation and inadequate power supplies, the mining sector contributed to the increase of exports due to an upturn in production at most mines, buoyed by strong demand.
Meanwhile, total revenue from exports in the first quarter of this year amounted to US$2,7 billion up from US$2,5 billion in the previous comparable first quarter of the year.
Most local companies have been failing to increase their capacity or upgrade their machinery due to liquidity challenges.This has exposed them at a time when cheaper imports are flooding the market.
The status quo has seen most local companies failing to satisfy local demand or compete favourably on the international market.