South African trade balance swings to surplus in August

South Africa’s trade balance shifted to a R8.79 billion surplus in August of 2018 from an upwardly revised R5.29 billion deficit in July and above market expectations of a R5 billion surplus. Considering the January to August period, the country posted a R2.66 billion surplus.

Exports increased 9.4 percent month-over-month to R116.88 billion in August 2018, driven by higher sales of vehicles and transport equipment (32 percent); mineral products (10 percent); precious metals and stones (7percent); chemicals (12 percent) and base metals (5 percent). The most important export partners were: China (9.0 percent of total exports), Germany (7.9 percent); the US (5.8 percent), the UK (5.3 percent) and India (5.0 percent).

Imports dropped 3.6 percent month-over-month to R112.15 billion, mainly due to lower purchases of mineral products (-37 percent) and vegetables (-33 percent). On the other hand, higher purchases were recorded for precious machinery and electronics (6 percent); metals and stones (28 percent) and original equipment components (8 percent). Main import partners were: China (19 percent of total imports), Germany (11.7 percent), the US (6.3 percent), India (4.7 percent) and the UK (3.7 percent).

Excluding trade with neighboring Botswana, Lesotho, Namibia and Eswatini (formerly Swaziland), the country recorded a trade surplus of R0.05 billion in August.

The South African Revenue Service (SARS) has released trade statistics for August 2018 recording a trade surplus of R8.79 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN).

The year-to-date (01 January to 31 August 2018) trade surplus of R2.66 billion is a deterioration on the surplus for the comparable period in 2017 of R39.93 billion. Exports year-to-date increased by 5.0% whilst imports for the same period showed an increase of 10.4%.

Including trade data with Botswana, Eswatini, Lesotho and Namibia (BELN)

The R8.79 billion trade surplus for August 2018 is attributable to exports of R116.88 billion and imports of R108.09 billion. Exports Increased from July 2018 to August 2018 by R10.03 billion (9.4%) and imports decreased from July 2018 to August 2018 by R4.06 billion (3.6%).

On a year-on-year basis, the R8.79 billion trade surplus for August 2018 is an improvement from the surplus recorded in August 2017 of R 6.80 billion. Exports are 12.2% more than the exports recorded in August 2017 of R104.16 billion. Imports are 11.0% more than the imports recorded in August 2017 of R97.37 billion.

Exports for the year-to-date (01 January to 31 August) increased by 5.0% from R757.56 billion in 2017 to R795.10 billion in 2018. Imports for the year-to-date of R792.45 billion are 10.4% more than the imports recorded in January to August 2017 of R717.63 billion, leaving a cumulative trade surplus of R2.66 billion for 2018.

July 2018’s trade deficit was revised downwards by R0.64 billion from the previous month’s preliminary deficit of R4.65 billion to a revised deficit of R5.29 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 July 2018 (revised) to August 2018 are given below.

Africa:

Trade surplus: R18 873 million – this is an improvement of R5 874 million in comparison to the R12 998 million surplus recorded in July 2018.

America:

Trade deficit: R2 204 million – this is a deterioration of R1 850 million in comparison to the R 353 million deficit recorded in July 2018.

Asia:

Trade deficit: R11 533 million – this is an improvement of R3 230 million in comparison to the R14 764 million deficit recorded in July 2018.

Europe:

Trade deficit: R4 249 million – this is an improvement of R5 621 million in comparison to the R9 869 million deficit recorded in July 2018.

Oceania:

Trade surplus: R9 million – this is an improvement of R 357 million in comparison to the R 348 million deficit recorded in July 2018.

Excluding trade data with Botswana, Eswatini, Lesotho and Namibia (BELN)

The trade data excluding BELN for August 2018 recorded a trade surplus of R0.05 billion. This was a result of exports of R104.37 billion and imports of R104.32 billion.

Exports increased from July 2018 to August 2018 by R8.25 billion (8.6%) and imports decreased from July 2018 to August 2018 by R3.95 billion (3.6%).

The cumulative deficit for 2018 is R56.45 billion compared to R20.50 billion deficit in 2017.

Trade highlights by category

Trade highlights by world zone

The world zone results for Africa excluding BELN from July 2018 (Revised) to August 2018 are given below.

Africa:

Trade surplus: R10 128 million – this is an improvement of R3 986 million in comparison to the R6 142 million surplus recorded in July 2018.

Botswana, Eswatini, Lesotho and Namibia (Only)

Trade statistics with the BELN for August 2018 recorded a trade surplus of R8.74 billion. This was a result of exports of R12.51 billion and imports of R3.77 billion.

Exports increased from July 2018 to August 2018 by R1.78 billion (16.6%) and imports decreased from July 2018 to August 2018 by R0.10 billion (2.8%).

The cumulative surplus for 2018 is R59.10 billion compared to R60.43 billion in 2017.

Trade Highlights by Category