Trade deficit reaches US$268,7million

ZIMBABWE exported goods worth US$550,6 million in December with three major export destinations South Africa, the United Arab Emirates and China accounting for about 73 percent of the total value, latest data from the Zimbabwe Statistics Agency (ZimStat) shows.

South Africa contributed 30,5 percent, the United Arab Emirates 28,0 percent) and China (15,2 percent).

November exports amounted to US$681,4 million, a decline of 18,1 percent (US$150,5 million) from the October value of US$831.9 million.

On the other hand, imports for December amounted to US$819.4 million, a decrease of 1,1 percent from US$828.4 million recorded in November 2023.

ZimStat noted that among the major source countries for imports in December 2023 were South Africa (40, 1 percent), China (11,4 percent), Bahrain (7, 6 percent) and Bahamas (5,4 percent).

The four countries accounted for around 65 percent of the total import value of US$819,4 million,

Imports in November totalled US$827,3 million, which was 8,3 percent (US$75,0 million) less than the October imports of US$902,3 million.

The trade figures show that the December trade deficit for goods was US$268,7 million, translating to an 82,8 percent increase from a deficit of US$147,0 million recorded in November.

A trade deficit occurs when a country’s value of imports is greater than that of exports in a given period.

When the value of exports exceeds the value of imports, it implies a trade surplus.

About 33, 4 percent of the goods imported in the period under review comprised industrial supplies, followed by the fuels and lubricants category which accounted for 20, 4 percent.

Among the top ten products exported in December were semi –manufactured gold, tobacco and nickel mattes which accounted for 28, 8 percent, 17, 9 percent and 15,7 percent of the total value of US$550,6 million, respectively.

Mineral fuels and mineral oil products, mechanical appliances, cereals and vehicles were among the top 10 imported products in December.

The products constituted 21,3 percent 10,3 percent, 9,8 percent and 9,4 percent of the total import value of US$819.4 million, respectively.

Meanwhile, ZimStat said the month-on-month inflation rate for January was 6,6 percent, gaining 1,9 percentage points on the December rate of 4,7 percent.

The month-on-month inflation rate is given by the percentage change in the price index of the reference month of a given year compared with the price index of the previous month.

The year-on-year inflation rate for January as measured by the all-items Consumer Price Index (CPI), was 34, 8 percent.

The year-on-year inflation rate is given by the percentage change in the price index of the reference month of a given year, compared with the price index of the same month in the previous year.-chronicle