South Africa trade surplus higher than expected

South Africa’s trade surplus increased to ZAR 10.67 billion in June of 2017 from a downwardly revised ZAR 7.22 billion surplus in May, beating market expectations of a ZAR 8.4 billion surplus. Imports slumped 4.2 percent while exports declined at a slower 0.6 percent. Considering the first six months of the year, exports jumped 4.7 percent while imports went down 1.4 percent, shifting the country's trade balance into a ZAR 27.67 billion surplus from a ZAR 5.042 billion gap in the same period of 2016. 

Compared with the previous month, imports declined to ZAR 91.46 billion from ZAR 95.51 billion, mainly due to lower purchases of mineral products (-31 percent); machinery and electronics (-2 percent) and textiles (-11 percent). On the other hand, imports rose for vegetables (27 percent) and vehicles and transport equipment (21 percent).

Exports fell to ZAR 102.14 billion from ZAR 102.73 billion, due to lower shipments of mineral products (-16 percent); base metals (-6 percent); chemical products (-8 percent); wood pulp and paper (-16 percent); live animals (-14 percent); machinery and electronics (-2 percent) and plastic and rubber (-6 percent). In contrast, sales went up for precious metals and stones (11 percent), vegetables (33 percent) and vehicles and transport equipment (18 percent). 

Excluding trade with neighboring Botswana, Lesotho, Namibia and Swaziland, the country’s trade gap widened to ZAR 0.549 billion from a ZAR 0.378 billion gap in May. However, the trade deficit fell to ZAR 18.19 billion in the forst six months of 2017 from a ZAR 56.41 billion shortfall in the same period of 2016.

The South African Revenue Service (SARS) today released trade statistics for June 2017 recording a trade balance surplus of R10.67 billion. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS). The year-to-date trade balance surplus (01 January to 30 June 2017) of R27.68 billion is an improvement on the deficit for the comparable period in 2016 of R5.04 billion.

Including trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)

The R10.67 billion trade balance surplus for June 2017 is attributable to exports of R102.14 billion and imports of R91.47 billion. Exports decreased from May 2017 to June 2017 by R0.59 billion (0.6%) and imports decreased from May 2017 to June 2017 by R4.04 billion (4.2%).

Exports for the year-to-date (01 January to 30 June 2017) grew by 4.7% from R539.03 billion in 2016 to R564.39 billion in 2017. Imports for the year-to-date of R536.72 billion are 1.4% less than the imports recorded in January to June 2016 of R544.07 billion.

On a year-on-year basis, the R10.67 billion trade balance surplus for June 2017 is an improvement from the surplus recorded in June 2016 of R8.38 billion. Exports of R102.14 billion are 1.1% more than the exports recorded in June 2016 of R101.07 billion. Imports of R91.47 billion are 1.3% less than the imports recorded in June 2016 of R92.69 billion.

May 2017’s trade balance surplus was revised downwards by R2.28 billion from the previous month’s preliminary surplus of R9.50 billion to a revised surplus of R7.22 billion as a result of ongoing Vouchers of Correction (VOC’s).

Trade highlights by world zone

The world zone results from May 2017 (revised) to June 2017 are given below.

Africa:

Trade Balance surplus: R22 435 million – this is a 34.9% increase in comparison to the R16 632 million surplus recorded in May 2017.

America:

Trade Balance deficit: R2 247 million – this is a deterioration in comparison to the R 153 million surplus recorded in May 2017.

Asia:

Trade Balance deficit: R11 702 million – this is a 2.4% decrease in comparison to the R11 994 million deficit recorded in May 2017.

Europe:

Trade Balance deficit: R5 100 million – this is an 8.7% decrease in comparison to the R5 588 million deficit recorded in May 2017.

Oceania:

Trade Balance surplus: R 223 million – this is an improvement in comparison to the R 32 million deficit recorded in May 2017.

Excluding trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)

The trade data excluding BLNS for June 2017 recorded a trade balance deficit of R 0.55 billion. This was a result of exports of R87.91 billion and imports of R88.46 billion.

Exports decreased from May 2017 to June 2017 by R4.12 billion (4.5%) and imports decreased from May 2017 to June 2017 by R3.95 billion (4.3%).

The cumulative deficit for 2017 is R18.19 billion compared to R56.41 billion deficit in 2016.

Trade highlights by world zone

The world zone results for Africa excluding BLNS from May 2017 (Revised) to June 2017 are given below.

Africa:

Trade Balance surplus: R11 213 million – this is a 24.2% increase in comparison to the R9 031 million surplus recorded in May 2017.

Botswana, Lesotho, Namibia and Swaziland (Only)

Trade statistics with the BLNS for June 2017 recorded a trade balance surplus of R11.22 billion. This was a result of exports of R14.23 billion and imports of R3.01 billion.

Exports increased from May 2017 to June 2017 by R3.53 billion (33.0%) and imports decreased from May 2017 to June 2017 by R0.09 billion (2.9%).

The cumulative surplus for 2017 is R45.87 billion compared to R51.37 billion in 2016.