Business and Finance

Imports, exports surge in August

Imports, exports surge in August

Provisional figures on Malawi’s international merchandise trade statistics released by the National Statistics Office (NSO) have shown that total imports increased to K549.65 billion in August.

This represents a 60 percent surge from K344.07 billion recorded in the same month last year, and a 4.1 percent jump from the K527.9 billion imports in July 2024.

Exports also grew to K321.99 billion, 133 percent higher than the K137.99 billion recorded in August 2023, and 119 percent above K146.6 billion recorded in July.

The development has culminated in a 10 percent increase in the trade deficit year-on-year as the trade balance widened to a deficit of -K227.66 billion compared to a deficit of -K206.09 billion in August 2023.

According to economist Velli Nyirongo, the trend remains concerning, saying while the country succeeded in boosting exports, its growing appetite for imports remains a challenge.

“This will continue making the country vulnerable to exogenous factors like climate change and geopolitical issues. The country does not appear to be establishing secondary industries or manufacturing sectors.

“In the long-term, if this trend persists, the country risks becoming increasingly dependent on donor support, as it is not generating sufficient income independently,” Nyirongo said.

Another economist, Marvin Banda, said Malawi’s trade position is not surprising considering the dynamic relationship between imports and exports portfolio.

“This continues to put further pressure on the import of fuel as well as depleting much needed forex as the turnover rate for vehicles is not quick enough to replenish the foreign reserves,” Banda said.