Zimbabwe’s trade gap widens

ZIMBABWE’S trade deficit grew by 82,8 percent in December 2023, reaching US$268,7 million, according to the Zimbabwe National Statistical Agency (ZimStat).
The December deficit marks a significant increase from the November figure of US$147 million, highlighting a worrying trend.
Historically, Zimbabwe has grappled with a trade imbalance, with the average deficit between 1991 and 2023 hovering around US$205,55 million per month, according to the Reserve Bank of Zimbabwe.
Exports declined by 19,2 percent in December, reaching US$550,6 million.
South Africa, the United Arab Emirates, and China were the top export destinations, accounting for 73 percent of the total value.
As with historical trends, primary commodities like nickel and gold continued to dominate exports, with semi-manufactured gold, tobacco, and nickel mattes forming the top 10 exported products in December.
While imports also decreased slightly compared to November, the decline was negligible at 1,1 percent.
Notably, South Africa, China, Bahrain, and the Bahamas remain the primary import sources, contributing 65 percent of the total value of US$819,4 million.
Mineral fuels, mechanical appliances, and cereals were among the leading imported products.
This widening trade gap raises concerns about Zimbabwe’s ability to finance essential imports and sustain its economic recovery.
Adding to the challenge, global economic headwinds and regional currency uncertainties pose additional risks.
The outlook for Zimbabwe’s trade balance remains fragile, and the government’s ability to narrow the gap and support recovery hinges on effective policy implementation and fostering a more conducive business environment.
Finance minister Mthuli Ncube, in his 2024 National Budget, expressed optimism about export growth despite softening commodity prices. newsdesk@fingaz.co.zw