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Johannesburg - South Africa's trade surplus for September will take some pressure off the country's current account deficit, said economists on Friday.
September's trade surplus clocked in at R3.87bn for trade with non-Southern African Customs Union members. The number was a pleasant surprise to most market commentators, who were expecting a R1.5bn deficit following August's trade gap of R1.98bn.
South Africa recorded a surplus in September because exports, which amounted to R45.5bn, outnumbered imports of R41.6bn.
The increase in exports was chiefly in the resources sector, with smaller increases in exports of vehicles and aircraft.
Economists said the uptick in goods moving out of South Africa can be attributed to a strengthening in demand for commodities from China.
"Imports remain constrained by weak economic conditions as a result of declining private sector investment, as well as weak consumer spending," said Carmen Altenkirch, senior economist at Nedbank.
Mike Schüssler from economists.co.za said the trade numbers meant good news for the export market, but indicated the weakness of the internal economy.
If the strong export trend persists, it will have a positive effect on economic growth, investor confidence in South Africa and the current account deficit.
"We anticipate that, should current trends persist, the current account deficit for 2009 could improve to somewhere between 4.5% and 5% of GDP," said Altenkirch.
- Fin24.com