Malawi's trade deficit widens by 31 pct in 2008

Malawi's trade deficit widened by 31 percent in 2008 on higher food and fertiliser costs, the Treasury said in an economic report on Wednesday.

The shortfall grew despite a 23 percent increase in exports last year to $1.03 billion from $835.7 million in 2007.

'Owing to high prices of fuels and fertilizers on the international market, the overall current account registered an increase in trade deficit of 31 percent from $492.9 million in 2007 to $642.9 million in 2008,' the Treasury said.

Malawi's trade account has been in deficit since the mid 1990s.

Economic mainstay tobacco made up 64 percent of last year's total export value, while sugar replaced tea as the second biggest export.

The report said imports from the European Union fell 5 percent in 2008 but imports from the Southern African Development Community (SADC) countries and the Common Market for Eastern and Southern Africa (COMESA) increased sharply.