HARARE – Zimbabwe’s merchandise balance which represents the difference between total exports and imports showed a deficit of US$38.0 million in December 2020, according to the figures released by the Zimbabwe National Statistics Agency (ZIMSTAT).

Total exports of goods amounted to US$488.3 million against imports in total of US$527.2 million, representing a deficit of 7%.

South Africa remained the country’s major trade partner constituting US$160.3 million of the total exports or 32.8 % of the total exports.

The December performance showed a negative turnaround from the November 2020 outturn where the country recorded a trade surplus with exports jumping 20% from the earlier month driven by tobacco exports.

On a year-on-year basis, the imports increased by 25% from a total of US$420.5 million in December 2019, while exports stood at US$489.1 million a year earlier slightly above the current period.

On a month-on-month basis, the imports increased by 3% from US$509.8 million in November while exports slid by 8% from US$528.4 million.

Despite registering a trade surplus in November 2020, the value of imports has been on an upward trend since August 2020, after taking a dip in July recorded at US$359.3 million. The December figure is the highest over the last 5-months period ahead of the November outturn.

Over the same period, exports rose highest in November ahead of the December performance.

With the COVID-19 vaccine roll-out programme gathering pace, we will likely see a surge in imports further widening the country’s trade position in the coming months. Likewise, a pickup in domestic activity will also result in further demand for imports as the country’s industry remains below capacity to meet domestic demand.