Trade deficit up 117,8 percent

THREE countries — South Africa, the United Arab Emirates, and China accounted for approximately 79 percent of the total export value of US534,7 million in March while four countries accounted for 67 percent of the total import value of US$719,0 million, according to the Zimbabwe National Statistics Agency.

Providing an update on external trade for March, the agency highlighted that the goods trade deficit hit US184,3 million, marking a 117,8 percent increase from the February deficit of US$84,6 million.

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.

Exports during the period amounted to US534,7 million, a decrease of 17,1 percent (US$11,3 million) from the February figure of US$645,0 million.

Imports totalled US719,0 million,which was 1,5 percent US$10,7 million) lower than the February imports of US$729,6 million.

The agency reported that in March, major export destinations for the country included South Africa (34,6 percent), United Arab Emirates (34,3 percent) and China (10,4 percent).

These three countries collectively represented approximately seventy-nine percent of the total export value of US$534,7 million.

Regarding major source countries for imports, South Africa accounted for 38,5 percent, China for 15,1 percent, Bahamas (9,4 percent) and Mozambique for 3,9 percent.

Together, these four countries made up around sixty-seven percent of the total import value of US$719,0 million.

For March 2024, the total value of imports was US$719,0 million from which South Africa accounted for 38,5 percent.

The agency noted that among the top 10 products exported in March were semi-manufactured gold, nickel mattes and tobacco, which accounted for 23,6 percent, 16,1 percent and 12,3 percent of the total value of US$534,7 million respectively.

Mineral fuels and mineral oil products, machinery and mechanical appliances, cereals and vehicles were among the top ten imported products in March.

Meanwhile, ZimStat has started reporting three sets of inflation data after the launch of the Zimbabwe Gold (ZiG). Inflation data will now be presented in weighted format, with separate figures for US dollar and ZiG.

“Going forward from the April price statistics, the country will publish three price indices with the ZiG index, US dollars Index and the Blended Index. This month we do not have a ZiG price index because it has been rebased according to international practice.”

The US dollar Consumer Price Index (CPI) was 106,76 in April and 105,96 in March.

In US dollars, month-on-month inflation rate was 0,8 percent in April gaining 0,6 percentage points on the March rate of 0,2 percent.

The US dollar year-on-year inflation rate for April as measured by the all-items Consumer Price Index (CPI), was 3,2 percent.

“This means that prices as measured by the all-items CPI, increased by an average of 3,2 percent between April 2023 and April 2024 giving us a mean month-on-month inflation rate for the period January to April 2024 of 0,1 percent,” Zimstat said.

The year-on-year inflation rate for April as measured by the all-items CPI, was 57,5 percent, meaning that prices as measured by the all-items CPI, increased by an average of 57,5 percent between April 2023 and April.

The weighted inflation mean month-on-month inflation rate for the period January to April 2024 was 4,9 percent.

ZimStat could not compute the ZiG based inflation figures for March.

“The ZiG CPI in April 2024 was 100,00. In April 2024, Zimbabwe introduced the Zimbabwe Gold (ZiG) currency.

“Therefore, the index reference for the CPI for the ZiG currency is April 2024. This means during the month of April 2024, there is no month-on-month and year-on-year inflation rates.

“The month-on-month inflation rate for the ZiG currency will be computed starting in May 2024 and going forward and year-on-year inflation rate will be computed in April 2025 and going forward according to the international recommended methods. —chronicle