Trade deficit widens on lower diamond exports

Isaac Pinielo | Tuesday July 25, 2017 15:46

 

An analysis of the data shows that the decline in exports was mainly due to a drop of 7.4% in diamond exports, from P3.81 billion in March 2017 to P3.53 billion in the month under review. The total exports value for April 2017, compared to that of the same month in 2016 shows a decrease of 52.9% from P8.06 billion to P3.8 billion.

Similarly, the decrease was mainly attributed to the drop in exports of diamonds, which fell by 51.3% from P7.25 billion in April 2016 to P3.53 billion during the period under review. During that month, exports destined to Asia were valued at P2.2 billion, representing 58.1% of total exports. India received exports amounting to P1.3 billion, accounting for 35.4% of total exports during the month. T

he major commodity exported to Asia was diamonds, representing 99.7% of all goods exported to the region. The European Union region received exports valued at P957.2 million, representing 25.2% of total exports during the period under review.

Exports destined to the Southern African Customs Union region were valued at P243.7 million, representing 6.4% of total exports for the month. South Africa received exports valued at P226.3 million, accounting for 5.9% of total exports during the same month.

The major commodities exported to South Africa were diamonds, accounting for 36.6% of total exports to the country followed by machinery and electrical equipment with 22.4% and salt and soda ash with 13.1%.

During the same period, Botswana imported goods valued at P5.1 billion, showing an increase of 20.5% from the previous month’s value of P4.29 billion.

This increase was mainly attributed to the increase of more than 100% or P435.4 million in fuel imports from P394.2 million in the prior month to P829.6 million in April 2017.  Chemicals and rubber products also contributed to the increase having recorded an increase of 65.6% from P237.6 million during March 2017 to P393.4 million in the month under review.

Comparison of imports for April 2017 and April 2016 shows a decrease of 21.7% from P6.6 billion recorded during April 2016 to P5.17 billion recorded during the reference month.

The decrease was mainly attributed to the 24.8% decrease in imports of diamonds from P2.3 billion during April 2016 to P1.75 billion in April 2017.