Trade deficit decreases by E2.92

MBABANE – The trade deficit for the financial year 2021/22 reflected a significant drop of E2.92 billion compared to the previous financial year.

A trade deficit occurs when a coun try’s imports exceed its exports dur ing a given time period.

A trade deficit of E0.72 billion was recorded in 2021/22, compared to a E3.640 billion deficit in the previous year.

This was revealed in the Eswatini Revenue Service (ERS) integrated annual report 2021/22, which was tabled by the Minister of Finance, Neal Rijkenberg, in Parliament on Friday.

According to the report, total ex ports to the world stood at E31.472 billion, which was a 10.24 per cent increase from E28.547 billion record ed in the previous year.

Total imports from the world in creased by 18.21 per cent in 2021/22, valued at E32.188 billion compared to E27.230 billion in the previous reporting period.

Report

It was revealed in the report that South Africa remained Eswatini’s major import partner, accounting for 73.55 per cent (E23.676 billion) of total imports in 2021/22, which was a 24.45 per cent increase from the previous year.

The major imported goods from SA were petroleum products and electric current. The rest of the other top import partners excluding SA were Mainland China, India, Mozambique and the 8nited States of America.

“Petroleum products and related materials in the sum of E3.063 bil lion, textile yarns in the sum of E2.40 billion, fabrics in the sum of E2.3 billion and electric current in the sum of E2.248 billion were the top imported classifications in 2021/22,” reads the report.

Even with exports, South Africa remained the country’s major part ner, accounting for E21.732 billion (6 .02 per cent) of total exports in 2021/22, which was a 16.06 per cent increase compared to 2020/21.

Preparations

The major exports to SA were essential oils and sugar prepara tions and honey. The rest of the other top five export partners were Kenya, Nigeria, Mozambique and imbabwe.

“Noticeably, is the exponential increase in exports to Spain, presum ably from a resumption of normal trade after the COVID 1 pandemic, especially for some products like cane sugar and grapefruits,” reads,