Zim records $2,84bn trade deficit

Fiona Chigwida Business Correspondent
The country’s trade deficit in the nine months to September was at $2,84 billion from imports of $4,65 billion and exports of $1,81 billion. Zimbabwe has over the years continually run systemic trade deficits due to structural weaknesses in the economy which have been caused by many factors; this has seen the closing down of the country’s industry and affecting the country’s global competitiveness resulting in a marked decline in exports.

Zimbabwe’s total trade (exports + imports) accounts for 94 percent of the country’s GDP; while exports as a share of GDP have remained flat in the last two years at 31,6 percent.
Latest data from Zimstats shows that fuels (petroleum products) account for 43 percent of the overall trade deficit. Primarily Zimbabwe’s exports are underpinned by the extractive and agricultural sectors, with opportunities to export primary products.

In terms of value; top of the list is gold followed by tobacco, nickel, ferrochrome, diamonds, sugar, platinum and cotton in that order.
South Africa remains the countries number one export destination followed Mozambique, Belgium and Zambia.

Thanks to tobacco and diamonds Belgium is now the third largest export market for Zimbabwe. According to the report China’s is the 8th largest export market with Zimbabwe exporting goods worth $6,3million.

Analysts believe that the country’s look east policy should also encompass a policy to grow the country’s exports into the Far East.