Zim trade deficit widens

figures from Zimstats show.
During the period under review, imports amounted to US$5,7 billion against exports of US$3,2 billion.
Major sources of imports to Zimbabwe were South Africa, United States of America, China, Mozambique and the United Kingdom.
The country imported goods and services worth US$2,7 billion from South Africa against exports of US$1,7 billion.
South Africa has remained the country’s largest trading partner, followed by the US, after Zimbabwe imported goods valued at US$744,7 million compared with goods valued at US$29,1 million exported to America.
Trade between Zimbabwe and the United Arab Emirates was tilted in favour of Zimbabwe after it exported goods and services worth US$329,1 million compared with US$147,8 million in imports.
Zimbabwe’s trade with Belgium, Kenya, Indonesia, Norway, Bulgaria, Ethiopia and Cameroon was in favour of Zimbabwe.
Stamp-impressed paper, banknotes and bond certificates were among the major exports during the period, earning US$559,1 million followed by nickel mattes, generating US$440,7 million for the country.
Zimbabwe also exported flue-cured tobacco worth US$407,8 million and semi-manufactured gold accounted for US$287,1 million in exports.
The biggest chunk of money was spent on diesel, motor vehicles, petroleum oils and base stations.
Statistics indicate that during the period under review, diesel valued at US$526,5 million was imported into Zimbabwe.
Motor vehicles worth US$614,5 million found their way into the country and base stations worth US$157,1 million were imported.
Cellular phones, cooking oil, fertilisers and flour are some of the goods topping the list of imports.
The trade imbalance results from the poor performance of local industry. Average capacity utilisation is around 40 percent.
Zimbabwean productive sectors have largely failed to boost capacity utilisation as a result of the prevailing liquidity constraints.
Economists say export market competitiveness by local industries has declined dramatically as a result of high production costs accelerated by capital constraints and high utility charges.
Production costs remain high as companies are using obsolete equipment.
Zimbabwe is emerging from a decade-long economic slump in which the economy contracted by more than 50 percent from a 1996-1998 peak of US$9 billion to about US$2,5 billion in 2008.
The economy is expected to grow 9,3 percent this year, its third successive since the formation of the inclusive Government.
The economy registered a GDP growth rate of 6,3 percent in 2009 and 8,1 percent last year.