Harare - Zimbabwe’s trade deficit with South Africa in the first quarter of the year amounted to US$27.67m and is expected to widen further, as there is generally more importing activity in the second half of the year.
According to import and export data from Zimstat, Zimbabwe imported goods worth $615.39m from South Africa during the period under review against exports of $587.7m.
The exports to South Africa and other countries were however dominated by minerals.
Overall, Zimbabwe’s trade deficit in the first quarter widened to $845.51m, with exports of $813.57m against imports of $1.66bn.
Zimbabwe's trade balance is expected to maintain the current status due to sluggish export performance, which will further aggravate the current account deficit now standing at more than 20% of gross domestic product.
The immense export growth potential of the Zimbabwean economy continues to suffer from its inability to beneficiate primary production in agriculture and mining.
This forces the country to continue exporting raw materials, with mineral exports accounting for over 40% of total exports.
At the same time, capacity utilisation of most productive sectors remains well below potential, forcing retailers to depend on imports to stock up the supermarkets.
About 60% of products in Zimbabwean shops are imported, mainly from South Africa for grocery items and from China for clothing and other household essentials.
According to the Confederation of Zimbabwe Industries, the country's manufacturing sector requires at least $2bn to operate at full capacity.
- Fin24
According to import and export data from Zimstat, Zimbabwe imported goods worth $615.39m from South Africa during the period under review against exports of $587.7m.
The exports to South Africa and other countries were however dominated by minerals.
Overall, Zimbabwe’s trade deficit in the first quarter widened to $845.51m, with exports of $813.57m against imports of $1.66bn.
Zimbabwe's trade balance is expected to maintain the current status due to sluggish export performance, which will further aggravate the current account deficit now standing at more than 20% of gross domestic product.
The immense export growth potential of the Zimbabwean economy continues to suffer from its inability to beneficiate primary production in agriculture and mining.
This forces the country to continue exporting raw materials, with mineral exports accounting for over 40% of total exports.
At the same time, capacity utilisation of most productive sectors remains well below potential, forcing retailers to depend on imports to stock up the supermarkets.
About 60% of products in Zimbabwean shops are imported, mainly from South Africa for grocery items and from China for clothing and other household essentials.
According to the Confederation of Zimbabwe Industries, the country's manufacturing sector requires at least $2bn to operate at full capacity.
- Fin24