- Trade deficit rose to $218.9 million, up from $156.8 million in May
- Falling gold and nickel concentrates shipments weighed on exports
- Power outages and exchange rate volatility exacerbated production costs
Harare- Zimbabwe's trade deficit surged in June 2024, reaching over $200 million. The latest data from Zimstat shows the deficit rose by 39.6% to $218.9 million, up from $156.8 million in May 2024.
A trade deficit occurs when a country's imports exceed its exports over a given period. Conversely, a trade surplus happens when exports outweigh imports.
Zimbabwe lastly registered a positive trade balance in 2001
The widening deficit was driven by a 10% decline in exports, which fell to $524.7 million from $583.0 million in May 2024.
Imports, on the other hand, increased slightly by 0.5% to $743.6 million, up from $739.8 million the prior month.
The drop in exports was partially attributed to falling gold and nickel concentrates shipments.
Gold's share of exports decreased from 42.8% in May to 30.5% in June, while nickel concentrates fell from 7% to 4.9%.
Zimbabwe faced significant challenges during the period, including widespread power outages and exchange rate volatility reaching as high as 46%, which exacerbated production costs for exporters.
The top exported products in June 2024 were semi-manufactured gold (30.5%), nickel mattes (18.5%), and partly or wholly stemmed/stripped tobacco (8.6%), which together made up 57.6% of the $524.7 million in total exports.
On the import side, the leading products were mineral fuels and oils (25.7%), machinery and mechanical appliances (11.6%), cereals (10.0%), and vehicles (6.8%), accounting for 54.1% of the $743.6 million in total imports.
The country's major export destinations in June 2024 were the United Arab Emirates (33.2%), South Africa (32.2%), China (7.6%), and Mozambique (7.1%), together representing around 73% of total exports.
The top import sources were South Africa (40.7%), China (11.6%), Bahamas (9.6%), and Singapore (4.8%), making up approximately 67% of total imports.
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