Share

SA's trade deficit narrows

Johannesburg - South Africa’s trade deficit narrowed to R1.0bn in May - in line with forecasts - from a R2.4bn shortfall, the South African Revenue Service (Sars) said on Thursday.

“The reduction in the trade deficit was underpinned by higher commodity exports, specifically precious and base metals,” Sars said.

Exports rose by 9% month-on-month in May while imports were up 6%. Economists surveyed by Reuters expected the trade account to register a R1bn shortfall in May.

Salomi Odendaal, economist at Citadel, said demand for commodities remains strong despite weaker growth in some parts of world.

“We expect imports to be fairly strong given that the rand is holding its own against other currencies. If local demand picks up and inflation remains relatively low as the rand is resilient, we may see a further pickup in imports so that the trade balance will worsen a bit.”

The trade account is expected to record deficits this year as the local economy recovers and imports rise. The surplus on the trade account narrowed to R22bn in the first quarter from R75.5bn in the fourth quarter.

The deficit on the current account widened to 3.1% of GDP in the first quarter from 1.0% gap in the fourth quarter partly due to a levelling off in the value of exports while imports jumped.

Deputy Finance Minister Nhlanhla Nene said on Wednesday the rand, which has gained about 30% to the dollar since beginning of 2009, was putting pressure on the current account leaving South Africa vulnerable to external shocks.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.06
-0.8%
Rand - Pound
24.04
-0.6%
Rand - Euro
20.55
-0.4%
Rand - Aus dollar
12.37
-0.2%
Rand - Yen
0.13
-0.8%
Platinum
901.20
+0.5%
Palladium
997.97
-0.4%
Gold
2,206.11
+0.5%
Silver
24.64
-0.0%
Brent Crude
86.09
-0.2%
Top 40
68,067
+0.6%
All Share
74,267
+0.5%
Resource 10
56,746
+2.0%
Industrial 25
103,647
+0.4%
Financial 15
16,482
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders