rbz samora machel avenue.jpgThe country’s economy continues to perform below par as the balance of trade deficit sharply rose in the month of August following a sharp increase in the import bill that is three times the export bill.
The 3rd quarter of the year saw the economy witnessing an increase in the country’s exports, but worryingly also seen was a sharp rise in the import bill from US$524 million in June to just over a billion in August.

Permanent Secretary in the Ministry of Economic Planning and Investment Promotion, Dr Desire Sibanda said the trade deficit is a result of subdued industrial production and the high cost of production associated with local products which render them expensive on the international market.

He however said the economy  is improving with increased investment and production in the mining sector.

The country’s exports closed in June at just above US$369 million and rose to US$386 million the following month and settled at US$382 million in August.

The failure by industry to boost its capacity utilization is still worrying as this has seen an increase of the importation bill.