Malawi's insatiable appetite for imported goods has widened its trade deficit with other economies as it has increased with 55.1 percent while exports shrinked.

According to the International Merchandise Trade Statistics published today by the National Statistical Office (NSO), in October 2024, total imports increased to US$288.5 million from US$264.4 million in October 2023, representing a 9.1 percent increase. 

The latest figures have disclosed that total exports for Malawi declined, reaching US$84.6 million in October 2024 from US$133 million in October 2023, representing a 36.4 percent decline. 

The report said this shows that the trade balance has expanded to a deficit of US$203.9 million in October 2024, compared to a deficit of US$131.5 million in October 2023.

National Statistical Office (NSO) spokesperson Sam Chipokosa disclosed that the country's trade deficit continued widening even on month-to-month basis with electrical machinery, vehicles, stationery and fertilizer toping the imported items.

"The analysis also indicated that the story is the similar on month-to-month basis where between September 2024 and October 2014, the imports decreased by 8.8 percent while the exports increased by a larger percentage of 61.1 percent,"he said.

Economics Association of Malawi (ECAMA) president, Dr. Bertha Bangara Chikadza said this highlights one of the core challenges that Malawi is facing such as, over reliance on a limited range of export commodities like tobacco and legumes.

"The country needs to tame appetite for imports, diversify exports and enhance economy's integration into the global and regional value chains to stabilize trade imbalance."

Currently, the country is facing persistent fuel shortages, owing to the scarcity of forex.