SA trade deficit widens in September
Thématique :
sud afrique
Reuters, 31 oct. 2008
South Africa's monthly trade deficit widened to R7,1-billion in September, according to data on Friday that indicated the current account deficit will remain large.
The South African Revenue Service said the increase from August's R5,12-billion trade deficit was largely due to higher imports of minerals products such as oil, as well as more shipments of machinery and chemical products.
Exports rose 1,12% from the previous month to R61,07-billion, while imports rose 4,07% to R68,8-billion.
Economists had forecast a shortfall of R4-billion.
A wide trade deficit has led to an increase in the current account deficit, which swelled to 7,3% of gross domestic product (GDP) last year, its widest in nearly four decades.
"In general, it confirms that the deficit on the trade account remains a problem and it will continue to put pressure on the current account, especially now with the weaker rand," Efficient Group economist Fanie Joubert said.
"We are already in a tight spot, so it is really not good news."
The Treasury has predicted the current account will stay firmly in deficit for years to come, weighed down by imports to feed a massive government infrastructure spending programme. It expects the shortfall to reach 8.9 percent of GDP in 2010.
However, a weaker rand may help to boost exports, although a sharply softer currency will also make imports more expensive.
The rand has weakened more than 30 percent against the dollar so far this year, stung by global risk aversion and domestic political uncertainty.
It weakened slightly after the data was released to 10,16 to the dollar from 10,13, before paring losses.
The wide current account gap, and the need for foreign capital inflows to finance it, make the currency particularly vulnerable to external shocks.
SARS said the cumulative trade deficit for the first nine months of the year was R61,6-billion rand compared with R55,3-billion during the same period last year.
South Africa's monthly trade deficit widened to R7,1-billion in September, according to data on Friday that indicated the current account deficit will remain large.
The South African Revenue Service said the increase from August's R5,12-billion trade deficit was largely due to higher imports of minerals products such as oil, as well as more shipments of machinery and chemical products.
Exports rose 1,12% from the previous month to R61,07-billion, while imports rose 4,07% to R68,8-billion.
Economists had forecast a shortfall of R4-billion.
A wide trade deficit has led to an increase in the current account deficit, which swelled to 7,3% of gross domestic product (GDP) last year, its widest in nearly four decades.
"In general, it confirms that the deficit on the trade account remains a problem and it will continue to put pressure on the current account, especially now with the weaker rand," Efficient Group economist Fanie Joubert said.
"We are already in a tight spot, so it is really not good news."
The Treasury has predicted the current account will stay firmly in deficit for years to come, weighed down by imports to feed a massive government infrastructure spending programme. It expects the shortfall to reach 8.9 percent of GDP in 2010.
However, a weaker rand may help to boost exports, although a sharply softer currency will also make imports more expensive.
The rand has weakened more than 30 percent against the dollar so far this year, stung by global risk aversion and domestic political uncertainty.
It weakened slightly after the data was released to 10,16 to the dollar from 10,13, before paring losses.
The wide current account gap, and the need for foreign capital inflows to finance it, make the currency particularly vulnerable to external shocks.
SARS said the cumulative trade deficit for the first nine months of the year was R61,6-billion rand compared with R55,3-billion during the same period last year.
