ABSTRACT
Trade plays an important role in the Zimbabwe economy, S. Robinson uses the ratio of exports plus imports to national income to highlight the importance of trade. The ratio reached 125 per cent in 1929 and was greater than 100 per cent at unilateral declaration of independence (UDI) in 1965 but declined sharply to 71 per cent between 1965 and 1966. The balance of trade was in surplus over the UDI period, except in 1968. The partial relaxation of import controls and the lifting of sanctions in 1980, increased imports that started balance of payments problems. The trade balance deteriorated sharply into deficit in 1981 as imports grew faster than export earnings in 1980 and 1981. The capital account had a positive net inflow during UDI to 1976, except in 1966 and 1972. There were net outflows between 1976 and 1980 as the liberation war intensified and uncertainty increased.
