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Zimbabwe’s trade deficit stood at $513 million in the first two months of the year as imports continued to outpace exports in the face of low industrial productivity, figures released on Wednesday show.According to the Zimbabwe National Statistics Agency (Zimstat), the trade balance remained in the negative after goods worth $1,041 billion were imported between January and February while exports trailed at $527,8 million.
In January, the trade deficit stood at $271 million.
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.
Major imports include disposable napkins which accounted for over $6 million between January and February, electric lamps, medical equipment, motor vehicles, motorcycles as well as related accessories and bottles.
Source markets include China, United Arab Emirates, Brazil, Switzerland, India, Japan, Mozambique, Singapore and South Africa.
According to Zimstat, the country exported tobacco, cigarettes, tea, fish and minerals with the United Arab Emirates, South Africa and Mozambique featuring as top markets for local products.
The Government in the 2015 National Budget hiked duties on a number of products as a strategy to discourage imports but this has not changed the trend. – New Ziana.
Online Reporter