In May, the visible trade gap narrowed to Lm28.5 million, implying an overall improvement of Lm60 million in the trade gap for the first five months of the year, the National Statistics Office said yesterday.

Provisional data for international trade show that the visible trade gap in May stood at Lm28.5 million, down by Lm19.1 million from the same month of last year. There was a decrease in imports of Lm15.7 million, while exports increased by Lm3.4 million. The shortfall in imports was mainly due to less imports of food, machinery and transport equipment, and miscellaneous manufactured articles. Mineral fuels and lubricant materials and chemicals accounted for the increase in exports during May 2007 when compared to the same month of last year.

From the perspective of the first five months of the year, the visible trade gap narrowed by Lm60 million to stand at Lm170.7 million. This came about because of a decrease of Lm43.7 million in imports during this period, with exports increasing by Lm16.3 million.

Higher import values were registered for fuel and lubricants, while industrial supplies and capital goods imports registered decreases. During this period, the increase in exports was generated primarily by food, chemicals, miscellaneous manufactured articles and mineral fuels and lubricants

An analysis of the total trade balance by commodity group indicates that the improvement in the balance for the first five months of 2007 was mainly due to food, crude materials, chemicals, machinery and transport equipment, and miscellaneous manufactured articles.

The bulk of Malta’s trade flows (and consequent trade deficit) continued to be directed to the European Union during the first five months of 2007.