Mineral exports up 32% due to increased production
Exports of minerals during the first half of 2022 rose by 32 per cent to US$2 899.0 million from US$2 193.8 million recorded for the same period in 2021 on account of higher production, Reserve Bank of Zimbabwe Governor Dr John Panonetsa Mangudya has said.
Rudairo Mapuranga
According to Mangudya merchandise exports increased by 33 per cent to US$3 516.5 million from US$2 649.7 million for the corresponding period in 2021.
“Preliminary estimates show that merchandise exports increased by 33% to US$3 516.5 million in the first half of 2022, from US$2 649.7 million for the corresponding period in 2021, spurred by increases in agriculture, mineral and manufactured goods exports.
“Minerals underpinned merchandise exports performance in the first half of 2022, growing by 32% from US$2 193.8 million recorded for the same period in 2021 to US$2 899.0 million. Mineral export prices were also spurred by heightened geo-political tensions in eastern Europe and inflationary pressures in advanced economies as investors sought refuge in safe-haven assets. Gold exports benefitted from higher global prices amid safe-haven demand, coupled with higher production as incentives to producers continue to bear fruit,” Dr Mangudya said.
Precious metal prices rose in the first half of 2022, although at a slower pace than in the previous year, owing to uncertainties around the ongoing conflict in eastern Europe and subsequent sanctions imposed on Russia, which developments have boosted the appeal of gold as a safe-haven. Furthermore, growing concerns over high inflation have also prompted investors to shift from riskier assets to precious metals as a safe haven. However, the gains in price increases are being moderated by the U.S Federal Reserve Bank’s hawkish monetary policy stance.
Global growth prospects have remained fragile owing to geo-political tensions, rising inflation and tighter financial conditions, global warming and the COVID-19 pandemic. In its July 2022 World Economic Outlook Update, the IMF revised global growth downwards to 3.2 per cent, from the initial estimate of 4.9 per cent in January 2022, with prospects in the short-term remaining gloomy and highly uncertain.
On the domestic front, growth prospects for 2022 remained robust at 4.6 per cent compared to the initial projection of 5.5 per cent, largely due to the underperformance of the 2021/22 agricultural season. Growth for 2022 will mainly be driven by mining and construction activities and accommodation and food services. The anticipated increase in international commodity prices is also expected to further support strong growth in the mining sector, particularly, in gold, diamond and PGMs sub-sectors