Trade deficit narrows 39.6% to K225bn—RBM
Malawi’s trade deficit narrowed by 39.6 percent to $128.5 million (about K225 billion) in February 2024 from $184.8 million (K323 billion) the previous month due to growth in exports and a drop in imports, figures show.
Reserve Bank of Malawi (RBM) figures published in its Monthly Economic Review show that the deficit marginally improved by 74.5 percent from $224.3 million (K381.3 billion) recorded in January because of a 39.6 percent growth in exports and 18.1 percent drop in imports.
“The growth in exports is attributed to increases in the sale of tobacco, tea and soya beans,” reads the report in part.
Tobacco sales rose to $20.5 million (K36 billion) from $19.4 million (K34 billion) while tea sales rose to $5.9 million (K10.3 billion) from $5.3 million (K9.2 billion). Soya bean sales rose to $3.9 million (K7 billion) from $700 000 (K1.2 billion).
The report noted that the decline in imports was largely induced by decreases in the purchase of fuel, fertiliser and printed books. Fuel imports also dropped by 83.7 percent from $47.4 million (K83 billion) to $25.8 million (K45 billion) during the review period.
Reacting to the report, market analyst Bond Mtembezeka said the marginal improvement in the trade deficit is partly explained by seasonal factors, with fertiliser imports trailing off from their peak between August and November.
“Now that fuel supply seems to have stabilised, fuel importers have reduced imports,” he said.
Catholic University of Malawi economics lecturer Derrick Thomo said yesterday that fuel imports dropped in the month under review because people have adopted cheaper modes of transportation.
