South African trade balance swings to deficit in September

South Africa’s trade balance shifted to a R2.95 billion deficit in September of 2018 from a downwardly revised R8.77 billion surplus and well below market expectations of a R4.0 billion surplus. It was the smallest trade gap since February. Considering the January to September period, the country posted a R0.33 billion gap. 

Exports fell 2.6 percent month-over-month to R113.69 billion in September 2018, mainly due to lower sales of vegetables products (-16 percent); machinery and electronics (-7 percent); vehicles and transport equipment (-6 percent) and base metals (-5 percent). Main export partners were: Germany (9.1 percent of total exports), China (7.2 percent), the US (6.8 percent), the UK (5.8 percent) and India (5.3 percent).

Imports jumped 8.0 percent month-over-month to R116.65 billion, boosted by higher purchases of mineral products (75 percent) and machinery and electronics (5 percent). On the other hand, imports dropped for original equipment components (-12 percent); vehicles and transport equipments (-8 percent) and chemical products (-5 percent). The most important import partners were: China (17.7 percent of total imports), Germany (9.8 percent), Saudi Arabia (9.2 percent), the US (6.2 percent) and Nigeria (4.5 percent).

Excluding trade with neighbouring Botswana, Lesotho, Namibia and Eswatini, the country recorded a trade deficit of R11.78 billion in September.

The South African Revenue Service (SARS) today released trade statistics for September 2018 recording a trade deficit of R2.95 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN).

The year-to-date (01 January to 30 September 2018) trade deficit of R0.33 billion is a deterioration on the surplus for the comparable period in 2017 of R44.89 billion. Exports year-to-date increased by 5.6% whilst imports for the same period showed an increase of 11.5%.

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

The R2.95 billion trade deficit for September 2018 is attributable to exports of R113.69 billion and imports of R116.64 billion. Exports decreased from August 2018 to September 2018 by R3.06 billion (2.6%) and imports increased from August 2018 to September 2018 by R8.66 billion (8.0%).

Exports for the year-to-date (01 January to 30 September) increased by 5.6% from R860.29 billion in 2017 to R908.68 billion in 2018. Imports for the year-to-date of R909.00 billion are 11.5% more than the imports recorded in January to September 2017 of R815.40 billion, leaving a cumulative trade deficit of R0.33 billion for 2018.

On a year-on-year basis, the R2.95 billion trade deficit for September 2018 is a deterioration from the surplus recorded in September 2017 of R 5.27 billion. Exports of R113.69 billion are 10.3% more than the exports recorded in September 2017 of R103.03 billion. Imports of R116.64 billion are 19.3% more than the imports recorded in September 2017 of R97.77 billion.

August 2018’s trade surplus was revised downwards by R0.03 billion from the previous month’s preliminary surplus of R8.79 billion to a revised surplus of R8.77 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 August 2018 (revised) to September 2018 are given below.

Africa:

Trade surplus: R14 198 million – this is a deterioration of R4 624 million in comparison to the R18 823 million surplus recorded in August 2018.

America:

Trade deficit: R1 989 million – this is an improvement of R 221 million in comparison to the R2 211 million deficit recorded in August 2018.

Asia:

Trade deficit: R19 708 million – this is a deterioration of R8 142 million in comparison to the R11 566 million deficit recorded in August 2018.

Europe:

Trade deficit: R 145 million – this is an improvement of R4 035 million in comparison to the R4 180 million deficit recorded in August 2018.

Oceania:

Trade deficit: R511 million – this is a deterioration of R 514 million in comparison to the R 3 million surplus recorded in August 2018.

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

The trade data excluding BELN for September 2018 recorded a trade deficit of R11.78 billion. This was a result of exports of R101.45 billion and imports of R113.23 billion.

Exports decreased from August 2018 to September 2018 by R2.81 billion (2.7%) and imports increased from August 2018 to September 2018 by R9.01 billion (8.6%).

The cumulative deficit for 2018 is R68.21 billion compared to R23.83 billion deficit in 2017.

Trade highlights by category

Trade highlights by world zone

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

Africa:

Trade surplus: R5 370 million – this is a deterioration of R4 724 million in comparison to the R10 093 million surplus recorded in August 2018.

Botswana, Eswatini, Lesotho and Namibia (Only)

Trade statistics with the BELN for September 2018 recorded a trade surplus of R8.83 billion. This was a result of exports of R12.24 billion and imports of R3.41 billion.

Exports decreased from August 2018 to September 2018 by R0.26 billion (2.0%) and imports decreased from August 2018 to September 2018 by R0.36 billion (9.5%).

The cumulative surplus for 2018 is R67.88 billion compared to R68.72 billion in 2017.

Trade Highlights by Category