SA has trade surplus in February, rebounding from gap

Johannesburg - South Africa’s trade balance swung to a surplus in February after recording the biggest deficit in at least 28 years a month earlier, as exports of vehicles and transport equipment more than doubled and machinery imports declined.

The R431.4m surplus compares with January’s revised R27.1bn negative balance, the SA Revenue Service said in an emailed statement Thursday. The median estimate of three economists surveyed by Bloomberg was for a R1bn.

The surplus was R5bn a year earlier.

Positive trade balances have eased pressure on the current account, the broadest measure of trade in goods and services, boosting the rand. The currency is the best performer worldwide against the dollar since the ruling African National Congress voted for Cyril Ramaphosa to lead the party in December, ending Jacob Zuma’s reign.

The government is battling to return public finances to a sustainable path and stave off another credit-rating downgrade, following years of stagnant growth and policy missteps that left a gaping hole in the budget.