South Africa trade surplus beats expectations in December

South Africa posted a trade surplus of ZAR 12.04 billion in December of 2016 compared to an upwardly revised ZAR 1.68 billion deficit in November and well above market forecasts of a ZAR 6 billion surplus. Imports slumped 19.6 percent, mainly due to lower purchases of original equipment components and machinery & electronics. Exports went down at a slower 6.1 percent, due to sales of vehicles & transport equipment and machinery & electronics.

Imports fell to ZAR 81 billion, as purchases went down for: machinery & electronics (-24 percent), equipment components (-53 percent), chemical products (-20 percent), base metals (-29 percent), textiles (-38 percent) and plastic & rubber (-30 percent). Meanwhile, mineral products imports rose 10 percent. Imports came mainly from China (16.9 percent of total imports), Germany (8.3 percent), Saudi Arabia (6.9 percent), the US (6.9 percent) and France (6.6 percent).

Exports declined to 93 billion mainly driven by lower sales of vehicles & transport equipment (-35 percent), machinery & electronics (-16 percent), precious metals & stones (-6 percent), base metals (-8 percent) and prepare foodstuff (-14 percent). By contrast, sales rose for vegetable products (+34 percent) and mineral products (+15 percent). Major destinations for exports were China (11.5 percent of total exports), Germany (6.1 percent), the US (5.4 percent), Botswana (4.5 percent) and Japan (4.5 percent).

Considering full 2016, the trade deficit shrank to ZAR 2.92 billion compared to ZAR 52.18 billion in 2015, as exports went up 5.8 percent and imports grew at a much slower 1 percent.

Excluding trade with neighboring Botswana, Lesotho, Namibia and Swaziland, the country posted a trade gap of ZAR 3.64 billion in December. From January to December, the trade deficit was ZAR 109.72 billion, compared to a ZAR 157.9 billion gap in 2015.

The South African Revenue Service (SARS) today released trade statistics for December 2016 recording a trade balance surplus of R12.04 billion. The year-to-date deficit (01 January to 31 December 2016) of R2.92 billion is an improvement on the deficit for the comparable period in 2015 of R52.18 billion. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS).

Including trade data with BLNS

The R12.04 billion trade balance surplus for December 2016 is attributable to exports of R93.03 billion and imports of R80.99 billion. Exports decreased from November 2016 to December 2016 by R6.03 billion (6.1%) and imports decreased from November 2016 to December 2016 by R19.75 billion (19.6%).

Exports for the year-to-date (01 January to 31 December 2016) grew by 5.8% from R1 036 billion in 2015 to R1 096 billion in 2016. Imports for the year-to-date of R1 099 billion are 1.0% more than the imports recorded in January to December 2015 of R1 088 billion.

On a year-on-year basis, December 2016’s R12.04 billion trade balance surplus is an improvement from the surplus recorded in December 2015 of R7.04 billion. Exports of R93.03 billion are 6.3% more than the exports recorded in December 2015 of R87.51 billion. Imports of R80.99 billion are 0.6% more than the imports recorded in December 2015 of R80.47 billion.

November 2016’s trade balance deficit was revised upwards by R0.59 billion from the previous month’s preliminary deficit of R1.09 billion to a revised deficit of R1.68 billion as a result of ongoing Vouchers of Correction (VOC’s).

Trade highlights by category

Trade highlights by world zone

The world zone results from November 2016 (Revised) to December 2016 are given below.

Africa:

Trade Balance surplus: R16 868 million – this is a 10.9% decrease in comparison to the R18 923 million surplus recorded in November 2016.

America:

Trade Balance deficit: R1 836 million – this is a 25.3% decrease in comparison to the R2 459 million deficit recorded in November 2016.

Asia:

Trade Balance deficit: R3 625 million – this is a 70.8% decrease in comparison to the R12 407 million deficit recorded in November 2016.

Europe:

Trade Balance deficit: R2 962 million – this is a 75.8% decrease in comparison to the R12 241 million deficit recorded in November 2016.

Oceania:

Trade Balance deficit: R 719 million – this is a deterioration in comparison to the R 208 million surplus recorded in November 2016.

Excluding trade data with BLNS

The trade data excluding BLNS for December 2016 recorded a trade balance surplus of R3.64 billion. This was as a result of exports of R82.33 billion and imports of R78.69 billion.

Exports decreased from November 2016 to December 2016 by R3.57 billion (4.2%) and imports decreased from November 2016 to December 2016 by R18.50 billion (19.0%).

The cumulative deficit for 2016 is R109.72 billion compared to R157.90 billion deficit in 2015.

Trade highlights by category

Trade highlights by world zone

The world zone results for Africa excluding BLNS from November 2016 (Revised) to December 2016 are given below.

Africa:

Trade Balance surplus: R8 469 million – this is a 9.1% decrease in comparison to the R9 313 million surplus recorded in November 2016.

Trade statistics with BLNS (only)

Trade statistics with the BLNS (Botswana, Lesotho, Namibia and Swaziland) for December 2016 recorded a trade balance surplus of R8.40 billion. This was a result of exports of R10.70 billion and imports of R2.30 billion.

Exports decreased from November 2016 to December 2016 by R2.46 billion (18.7%) and imports decreased from November 2016 to December 2016 by R1.25 billion (35.2%).

The cumulative surplus for 2016 is R106.80 billion compared to R105.72 billion in 2015.

Trade Highlights by Category