Zim total merchandise trade increases

TOTAL merchandise trade increased by 25 percent from $799,6 million in May 2018 to $999,2 million in June due to month-on-month increases in the stock of both exports and imports, latest data has shown.
According to the Reserve Bank of Zimbabwe’s (RBZ) monthly economic review for June, merchandise exports stood at $384,6 million during the month under review, compared to $267,2 million recorded in the previous month.
“The increase in merchandise exports was largely driven by a surge in export earnings from gold (69,2 percent); nickel mattes (63,8 percent); ferrochrome (58,9 percent); and flue-cured tobacco (53,6 percent),” the central bank said.
Gold, nickel, flue-cured tobacco, ferrochrome, chromium ore, industrial diamonds, macadamia nuts and platinum dominated the country’s exports, contributing about 84,3 percent of total export earnings in June 2018.
The country’s exports during the month under analysis were mainly destined for South Africa (39,7 percent); the United Arab Emirates (27,1 percent); Mozambique (10,8 percent); Zambia (1,7 percent); Botswana (0,6 percent) and Malawi and Namibia (0,2 percent each).
“Merchandise imports registered a 15,4 percent increase, from $532,4 million in May 2018 to $614,6 million in June 2018. This was on the back of increases in merchandise imports of electricity, 94,3 percent; diesel, 27,9 percent and unleaded petrol, 6,9 percent,” said RBZ.
The country’s imports in June were mainly sourced from South Africa (41,2%); Singapore (28,1 percent); China (4,7 percent); Japan (3,2 percent); Mauritius (2,4 percent) and Zambia (2,3 percent).
“The developments on merchandise trade resulted in an improvement in the trade deficit, from $265,2 million in May 2018, to $229,9 million in June 2018,” the Reserve Bank said.
Recently, former minister of industry, Mike Bimha, said Zimbabwe’s trade deficit with the rest of the world breached the $20 billion mark in the past nine years, with much of the imports coming from South Africa.
He said the country imported goods worth $1,2 billion from South Africa between February and June 2018 against exports valued at $763 million.
“The national statistical agency indicated that the country’s current account deficit is widening and cumulatively it has reached over $20 billion since adoption of the multi-currency regime in 2009,” he told guests at a Buy Zimbabwe-Zimbabwe Agricultural Society Breakfast meeting in Harare.
“Regrettably, the same institution indicated that between February and June 2018, the country imported goods and services worth $2,87 billion against exports of $1,62 billion, which remain heavily skewed towards consumptive products. The gap is widening as the country’s imports stood at $2,25 billion against exports of $1,31 billion during the same period in 2017. Cause for concern is the fact that $1,22 billion worth of these imports came from South Africa, the country’s largest trading partner, against exports of $763,94 million,” he said.
Other notable imports came from Singapore and stood at $626,88 million against Zimbabwe’s paltry exports valued at