Zimbabwe narrows trade deficit in 2016

Zimbabwe's trade deficit narrowed to 2.38 billion U.S. dollars in 2016 from 3.29 billion dollars the previous year after the government introduced various import control measures.

Zimbabwe's underperforming economy has been battling high trade deficits in recent years due to its low productivity.

Total imports in 2016 stood at 5.21 billion dollars, against exports of 2.83 billion dollars, according to the Zimbabwe National Statistical Agency.

In 2016, the Zimbabwean central bank introduced a raft of measures to curb non-essential imports and save meager foreign currency resources in the country.

The measures included an import priority list favoring goods such as raw materials, fuel, capital goods and dividends.

The Ministry of Industry and Commerce also introduced a Statutory Instrument to essentially ban importation of basic goods that are adequately produced in the country.

According to the government, the ban boosted manufacturing capacity utilization from 34.3 percent in 2015 to 47.4 percent last year.

Zimbabwe's main export products include tobacco, gems and precious metals, ores, slag, ash, iron and steel, sugar and cotton while the bulk of imports are fuel and lubricants, machinery and motor vehicles. Endit