Paul Nyakazeya, Group Digital Editor 
TOTAL merchandise trade declined by 13,9 percent from $1,1 billion in November last year to $947,4 million in December due to a decline in stocks of both exports and imports, latest data has shown.
According to the Reserve Bank of Zimbabwe (RBZ) monthly economic review for December, released last week, merchandise exports declined by 20,6 percent to $374,7 million in December 2018, compared to $471,7 million recorded in the previous month.
“This followed a 49,8 percent decrease in export earnings from flue-cured tobacco. Exports of gold, nickel mattes, ferro-chrome, chromium ores and concentrates, diamonds and platinum, however, registered increases during the month under review,” said RBZ said.
The country’s exports for December 2018 were mainly destined for South Africa, 59,2 percent; the United Arab Emirates -10,7 percent; Mozambique, -7,8 percent; Belgium -2,2 percent and Zambia 1,4 percent
Merchandise imports declined by nine percent, from $629 million in November to $572,7 million in December 2018.
“The country recorded notable monthly declines in merchandise imports of diesel and unleaded petrol, during the month under review. Petrol and diesel imports accounted for approximately 20 percent of the total value of imports, down from 29,5 percent in November 2018. Imports of crude soya bean oil and wheat, however, recorded increases,” said RBZ.
The country sourced imports mainly from South Africa, -45,5 percent; Singapore -21,1 percent; China -6,3 percent; United Kingdom, -9,1 percent and Mauritius 3,1 percent.
The merchandise trade developments resulted in the widening of the trade deficit, from $157,4 million in November 2018 to $198 million in December 2018.
During the same period, annual broad money supply growth (M3) recorded a 1,39 percentage points increase to 28,5 percent from 26,66 percent.
In nominal terms, the growth reflected an increase in broad money stock from $7,8 billion in December 2017, to $10 billion in December 2018.
“Expansions in currency in circulation, 51,25 percent; demand deposits, 32,01 percent; and time deposits, 7,65 percent, accounted for the growth in broad money. This was offset, in part, by the decline of 14,65 percent in negotiable certificates of deposits,” said RBZ.
On a month-on-month basis, broad money grew by 2,24 percent, from $9,8 billion in November 2018 to $10 billion in December 2018.
In terms of proportions, demand deposits accounted for 79,33 percent of broad money; time deposits, 15,7 percent; currency in circulation, 5,2 percent and negotiable certificates of deposits, 0,59 percent.
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