Trade Deficit Narrows 9.7%
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Bahamas experienced a 9.7 per cent drop in its trade deficit to $2.554 billion in 2013, largely due to an almost-$300 million fall in its import bill.
The
Department of Statistics’ 2013 Annual Trade Data report, which covers
just the Bahamas’ merchandise account or trade in goods, noted that
total imports fell year-over-year by 8 per cent or $291.6 million,
dropping from $3.658 billion to $3.366 billion.
While
it is unclear whether the import drop is the start of a trend, and if
it will be easier for the capital account (FDI and tourism earnings)
surplus to finance the merchandise deficit, the narrowing was certainly
not caused by any increase in Bahamian exports.
These, too, also fell in 2013, dropping from $828.7 million in 2012 to $811.7 million - a decline of $17 million or 2 per cent.
“The
2013 balance of trade (total exports minus total imports) continued to
result in a deficit,” the Department of Statistics noted. “However,
between 2012 and 2013, there was a noticeable decrease of some 9.7 per
cent in the trade deficit, resulting in a net trade balance of $2.6
billion in 2013 compared to $2.8 billion in 2012.”
The
$2.554 billion trade deficit incurred in 2013 was the lowest since
2009, when it fell to $2.114 billion at the recession’s peak.
“Data
on merchandise trade for the year 2013 show that the value of
commodities imported into the Bahamas totalled nearly $3.4 billion,
resulting in a moderate decrease of 8 per cent below 2012’s total of
$3.6 billion,” the Department of Statistics.
Mineral
fuels, likely including gasoline and other oil-based products were the
largest import category at $726.9 million or 21.6 per cent of the total,
with machinery and transport next at $657.4 million or 19.5 per cent of
the total.
Diesel
fuel imports were worth $328.7 million in 2013, with unleaded auto
gasoline and jet fuel accounting for $161.3 million and $46.9 million,
respectively. Other fuel oils were worth $124.1 million.
Manufactured
goods totalled $460.3 million for a 13.7 per cent of the Bahamas’ total
import bill, with fresh meats, fruits, vegetables and processed foods
coming to $466.5 million or 13.9 per cent.
On
the exports front, Polymers International’s polystyrene products at
$174.7 million, ‘other compounds’ at $61.6 million, lobster at $84.4
million accounted for 88 per cent of exports.
The
US remained the Bahamas’ main trading partner, supplying $2.75 billion
or 81.8 per cent of total imports. Puerto Rico and Trinidad & Tobago
accounted for $249.6 million and $81.9 million worth of imports
respectively.
The US also accounted for the lion’s share of Bahamian exports at $678.8 million, taking 83.6 per cent of the total.
July 03, 2014
