- Gold topped exports at 30.2%
- South Africa remains biggest trading partner
- Trade deficit more than halved
Harare- Zimbabwe's balance of trade witnessed a significant improvement, with the trade deficit declining by over 50% to US$85.1 million from a previous figure of US$196 million, representing a decline of 56.6%. This was attributed to a marginal contraction of 2% in exports, compared to a relatively substantial reduction of 14% in imports. However, the country remains a net importer.
A decrease in exports generally signifies a negative trend in the export market during the period, which could be attributed to factors such as a rapid depreciation of the local currency, a scarcity of foreign currency, and frequent power outages that may have impeded local production.
The primary import categories were industrial imports, capital goods, and fuels and lubricants. Conversely, the major export categories were industrial supplies and fuels and lubricants, with the former accounting for a significant proportion of the country's outbound trade.
The country's top exports comprised semi-manufactured gold and nickel mates, with tobacco ranking fourth in the list of key exports.
However, the major categories of industrial supplies and fuels and lubricants suggest that the country is exporting raw materials rather than value-added products.
This highlights the need for Zimbabwe to diversify its export base and promote value-added activities to achieve sustainable economic growth in the long run.
The dominance of semi-manufactured gold and nickel mates as top exports indicates that the country's export base is still heavily dependent on natural resources. This can expose the economy to fluctuations in global commodity prices and demand, which could have adverse effects on the country's economic performance.
In simple terms, it can expose the economy to fluctuations in global commodity prices and demand, which can lead to significant revenue volatility and instability.
Therefore, the government need to further invest in infrastructure such as transportation, energy, and communication networks to improve the business environment and attract investment in non-natural resource sectors.
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