JOHANNESBURG: Subdued economic activity has led to South Africa’s trade balance swinging to a deficit in August after three months of surpluses as the shipment of precious metals and stones, which include gold and diamonds, slumped.
Exports decreased 5.5 percent to R90.235 billion on a month-to-month basis, while imports rose to 9.2 percent to R98.736bn. Market expectations were for a trade surplus of R3bn for August. The R8.6bn deficit compares with revised surplus of R5bn in July, the SA Revenue Service said on Friday.
South Africa recorded its first quarterly trade surplus in a year in the three months to June as mining exports surged, helping to narrow the deficit on the current account, the broadest measure of goods and services, to 3.1 percent of gross domestic product (GDP) from 5.3 percent. Nedbank said global conditions remained lacklustre, which together with low commodity prices, would hamper export performance in the short term.
