Zimbabwe trade deficit widens 10.7 percent in May

Rutendo Mazhindu - Zimnow Reporter

Zimbabwe’s trade deficit widened to US$154.8 million in May 2025, representing a 10.7 percent increase from the US$139.8 million recorded in April, as imports continued to outpace exports, latest official data from ZimStat has shown.

According to the figures released by ZimStat’s , the country exported goods worth US$727.3 million in May, a 9.6 percent increase from US$663.8 million in April. However, imports rose by a higher margin of 9.8 percent to US$882.1 million, up from US$803.7 million.

Industrial supplies remained Zimbabwe’s dominant export category, accounting for 91.9 percent of total exports in May. Food and beverages followed at 2.6 percent, while fuels and lubricants made up 3.1 percent.

“The value of exported goods rose to US$727.3 million in May, mainly driven by semi-manufactured gold which constituted 50.2 percent of total exports,” said Ms. Mable Chimhore, ZimStat’s official responsible for external trade statistics.

Other key export items included nickel mattes 19.1 percent), tobacco 4.5 percent, and ferro-chromium 3.5 percent.

The United Arab Emirates was the top export destination, accounting for 51.1 percent of total exports, followed by South Africa at 30.8 percent and China at 5.8 percent.

Industrial supplies dominated, contributing 32 percent of total imports. Capital goods excluding transport equipment accounted for 20.5 percent, while fuels and lubricants made up 19.6 percent. Food and beverages were 11.8 percent of the import basket.

“South Africa remained the major source of imports at 34.8 percent, followed by China at 19.0 percent, Bahrain at 7.3 percent and the Bahamas at 5.9 percent,” Ms. Chimhore said.

The country’s year-on-year inflation rate for June 2025, measured in United States dollar terms, stood at 14.0 percent, up from 13.2 percent recorded in May.

The montn on month USD inflation rate was -0.2 percent in June, compared to -0.3 percent in May.

In Zimbabwe Gold (ZWG) terms, inflation remained elevated. The year-on-year inflation rate stood at 92.5 percent in June, while the month-on-month rate declined slightly to 0.3 percent from 0.9 percent in May.

Provincial data showed Matabeleland South had the highest ZWG annual inflation at 104.2 percent, followed by Matabeleland North at 103.6 percent. Harare recorded 89.4 percent.

The ZWG Producer Price Index for agriculture rose to 236.52 in May from 228.96 in April, reflecting a monthly change of 3.3 percent. The non-agricultural index increased 2.4 percent to 220.14.

The Producer Price Index for agriculture increased marginally by 0.3 percent to 110.28 in May. The non-agricultural index rose by 2.3 percent to 108.55.

The ZWG Civil Engineering Material Price Index reached 180.19, while the Plant Price Index climbed to 271.39 in May, indicating persistent cost pressures in the infrastructure sector.

ZimStat reported that the Food Poverty Line for June was ZWG 874.23 per person, while the Total Consumption Poverty Line stood at ZWG 1,280.05, reflecting the continued burden of inflation on consumers.