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Zimbabwe's trade deficit narrowed by 25%

Staff writer |
Zimbabwe's trade deficit declined 25.7 percent to $1.76 billion in the six months to June this year, down from $2.37 billion during the same period last year.

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However, the narrowing gap was mainly contributed to depressed demand and liquidity challenges rather than a boost in manufacturing.

According to figures released by the Zimbabwe National Statistics Agency (Zimstats) Tuesday, imports amounted to $2.99 billion, down from $3.92 billion last year while exports were at $1.22 billion, down from 1.54 billion in 2013.

Economists predict that trade deficit would close the year lower at $3.2 billion from $3.5 billion last year.

Increased revenue from tobacco, the country's largest foreign currency earner in the agriculture sector, has helped narrowing the gap. Zimbabwe has so far earned $650 million U.S. from the sale of 204 million kg of tobacco leaf, up from $616 million U. S. earned from the sale of 166 million kg last year.

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