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Bigger trade surplus expected

Sep 29 2009 13:15

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Johannesburg - South Africa's foreign trade balance with its non-Southern African Customs Union (Sacu) trading partners is expected to have reached a R500m surplus in August from the R447m surplus of July, according to a survey by I-Net Bridge.

A record R17.4bn deficit was set in January, but a few surprise surpluses have been registered this year. South Africa recorded a trade surplus of R446.758m for its trade with non-Southern African Customs Union trading partners in July after the R3.221bn surplus of June.

South Africa achieved its first trade surplus since 2006 of R2.020bn in May.

Forecasts among the seven economists surveyed for August varied from a R2.0bn deficit to a R1.0bn surplus, reflecting the still volatile nature of the trade data.

South Africa's bulk export volumes have surprised once again as they surged 29.01% year-on-year (y/y) in August from the whopping 36.82% jump in July, data supplied by the National Ports Authority of South Africa shows.

The current recession, though, has crimped back strongly on the level of trade, and exports are down 19.2% y/y (July data). However, the fall in imports has exceeded this at -24.3% y/y.

Although January total foreign trade export data showed a dramatic drop of 25.3% m/m, ushering in the record trade deficit of R17.4bn, export improvements have helped usher in surprise trade surpluses this year.

Trade with Asia is helping the country along.

Despite the global recession, South Africa's foreign trade with Asia remains robust and China is now the number one export destination after being fifth a year ago. It replaces the United States, which moves into second place.

Updated data from the Department of Trade and Industry (DTI) shows that for the first half of 2009, China is the number one export destination with annual growth of a stellar 53.9%, while the US has seen an annual decrease of 42.6% in exports. China takes 11.9% of the total market, the US 8.3% and Japan 7.5%.

In 2008, Japan, the United States, and Germany were, in descending order, the country's top export markets according to customs data, while top import markets were Germany, China, and the US.

China is now the biggest import market, pipping Germany, according to the latest DTI statistics.

Trade in South Africa has picked up markedly over the past decade. In 1998 exports only added up to R144.9bn and they ended 2008 at a very healthy R663.099bn by comparison, although an overall deficit of R64.5bn was seen.

South Africa's Customs and Excise Department is set to release the latest foreign trade data on September 30.

- I-Net Bridge

 
 
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