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Unexpected trade deficit for SA

Nov 30 2009 14:47

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Johannesburg - SA reported an unexpected trade deficit for October, data released by the SA Revenue Service on Monday showed.

Exports for October were R44.09bn while imports were R50.80bn, resulting in a deficit of R6.7bn.

This was in comparison to a R3.87bn surplus in September.

In October there was an increase in imports of 21.92% and a decrease in exports of 3.18%.

Most economists expected October's trade account to have recorded a mild surplus of around R0.5bn.

"Yes, it's a negative surprise but it's not something to worry about yet," economist Mike Schüssler said.

"It's probably due to the strong rand."

Schussler, however, said that trade data was notoriously difficult to forecast.

"Trade figures are always very volatile and it's too early to say if this is a start of a trend.

"It depends on factors such as oil shipments - one month you get three shipments and the next month only two," he added.

- Sapa

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