Zambia’s trade deficit trend is worrying – JCTR

The Jesuit Centre for Theological Reflection (JCTR) says Zambia’s trade deficit trend is worrying.

The Centre notes that a look back at 2016 shows that for the whole 12 months period, Zambia’s trade balance was in deficit.

The JCTR is concerned with this trend because of the cost of taking resources outside the country that could be spent locally.

It also notes that apart from this, key challenges exist for developing countries that have prolonged deficits which include currency depreciation due to higher demand for foreign currency used to import goods and promoting foreign production at the expense of local production which has an adverse impact on maintaining low prices of commodities.

It further notes that the decline in copper prices has resulted in reduced foreign earnings to the country and consequently increased trade deficit.

The JCTR is therefore encouraging government to come up with clear policies that improve the country’s productive base so that the nation begins to trade in agricultural commodities on a large scale also.

Meanwhile the JCTR Basic Needs Basket for the month of January 2017 stood at K4,935.46 from December’s K4,976.67, a decrease of K41.21.

It however, states that despite the decrease in the BNB, the cost of basic food items for a family of five had increased from K1, 431.94 in December 2016 to K1, 459.01 in January.

Top among these increases was the cost of Mealie meal which had on average increased by K8.53 in Lusaka. This was mainly attributed to seasonal pressures on the maize commodity because it is least available just before the maize harvest season.