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China: SA's top export market

Sep 28 2009 10:39

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Johannesburg - 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 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.

However, data this year has shows a number of surprise trade surpluses.

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.

For the first half of 2009, the largest growth (relative to 2008) for significant export sectors apart from unclassified goods was for fruit and nuts (11%), but the number one sector was precious or semi-precious stones at 24% of the cumulative total, according to the DTI data. The largest import growth among the major goods took place for pharmaceutical products (6.3%), with the biggest sector being mineral fuels and oil at 20.3% of the total.

- I-Net Bridge

 
 
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