Published: 10 April 2014

Zimbabwe's trade deficit in the two months to February declined 9,4 percent to $495,77 million from $547,26 million in the comparative period a year ago.

Imports were at $966,3 million from $1,1 billion, a 12,6 percent decline largely due to the prevailing liquidity crisis, weak aggregate demand and the closure of companies which import raw materials.

The decline in imports is also attributed to trade barriers introduced by Government at the beginning of the year. Exports were at $470,53 million, shedding 15,7 percent from the same period last year.

According to the latest statistics from ZimStat, in January imports declined 15 percent to $487,5 million from $576,6 million. The situation deteriorated in February with import levels dropping 2 percent to $478,41 million.

The trade gap is expected to continue narrowing for the remainder of the year as the country's ability to pay for imports is shrinking fast. According to the figures, the biggest declines in imports were recorded in the agriculture and food category. Dairy imports were 21 percent lower to $2,5 million from $3 million.

South Africa remained the biggest trading partner accounting for 60 percent of the imports while it also absorbed 58 percent of the exports.
- The Herald

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