South Africa’s trade deficit widened to the biggest in seven months in August as oil imports increased and iron-ore exports fell because of maintenance work on a rail line.

The trade gap swelled to 16.3 billion rand ($1.4 billion) from a revised 6.8 billion rand in July, the Pretoria-based South African Revenue Service said in an e-mailed statement today. The median estimate of 14 economists surveyed by Bloomberg was for a shortfall of 8.7 billion rand.

Transnet Holdings SOC Ltd.’s freight-rail unit shut its export iron-ore line from Sishen in the Northern Cape province to the Saldanha port for 10 days for annual maintenance last month, leading to a drop in shipments of the metal. Exports of vehicles and transport equipment rebounded after a strike in the metals and engineering industry in July forced carmakers such as General Motors Co. (GE) and Ford Motor Co. to shut their plants.

The large trade gap is “indicative of the very slow improvements of the productive sectors of the economy,” Jeffrey Schultz, an economist at BNP Paribas Cadiz Securities in Johannesburg, said by phone. “South Africa’s trade deficit is likely to remain structurally high over the medium term and it suggests that the turnaround in the currency’s fortunes seem unlikely any time soon.”

Worst Performer

The rand reversed gains after the release of the trade figures, falling to the weakest level since January. It traded 0.4 percent lower at 11.3268 per dollar as of 2:36 p.m. in Johannesburg, extending its loss since the start of last year to 25 percent. That’s the worst performance of 16 major currencies tracked by Bloomberg.

The trade shortfall so far this year widened to 70.7 billion rand compared with 51.9 billion rand for the same period in 2013, the revenue service said.

Exports dropped by 9.6 percent to 77.2 billion rand in August as shipments of mineral products, which include coal and iron ore, fell by 5.1 billion rand, or 24 percent, and precious metals and stones decreased by 15 percent. Shipments of vehicles and transport components increased by 13 percent.

Imports rose by 1.4 percent to 93.5 billion rand as purchases of mineral products climbed 11 percent. Machinery and electronics purchases advanced 4.9 percent.

The monthly trade figures are often volatile, reflecting the timing of shipments of commodities such as oil and diamonds.

Trade Statistics for August 2014 (SARS)

The South African Revenue Service (SARS) on 30 September 2014 released trade statistics that includes trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS) for August 2014 and that recorded a trade deficit of R16.30 billion. The inclusion of BLNS country trade data was announced on 14 November 2013 and will be included in all future trade statistics.

The R16.30 billion deficit for August 2014 can be attributed to exports of R77.24 billion and imports of R93.53 billion. 

Exports decreased from July to August by R8.19 billion (9.6%) and imports increased from July to August by R1.28 billion (1.4%). The cumulative deficit for 2014 is R70.74 billion compared to R51.88 billion in 2013.

• Africa: The surplus decreased from R14 179 million in July 2014 to R12 974 million in August 2014. Exports decreased by R 121 million to R24 970 million and imports increased by R1 084 million to R11 996 million.

• America: The deficit increased from R 838 million in July 2014 to R3 833 million in August 2014. Exports decreased by R1 596 million to R6 514 million and imports increased by R1 399 million to R10 347 million.

• Asia: The deficit increased from R14 927 million in July 2014 to R18 136 million in August 2014. Exports decreased by R4 187 million to R23 248 million and imports decreased by R 978 million to R41 384 million.

• Europe: The deficit increased from R8 645 million in July 2014 to R10 332 million in August 2014. Exports decreased by R1 943 million to R18 022 million and imports decreased by R 255 million to R28 354 million.

• Oceania: The deficit decreased from R 458 million in July 2014 to R 419 million in August 2014. Exports increased by R 319 million to R 933 million and imports increased by R 280 million to R1 352 million.

The trade data excluding BLNS for August 2014 recorded a trade deficit of R23.94 billion. The deficit for August 2014 can be attributed to exports of R67.02 billion and imports of R90.96 billion.

Exports decreased from July to August by R7.21 billion (9.7%) and imports increased from July to August by R1.23 billion (1.4%). The cumulative deficit for 2014 is R136.73 billion compared to R106.19 billion in 2013.

Trade statistics with the BLNS (only) for August 2014 recorded a trade surplus of R7.65 billion. The surplus can be attributed to exports of R10.22 billion and imports of R2.57 billion.

Exports decreased from July to August by R0.98 billion (8.7%) and imports increased from July to August by R0.06 billion (2.2%). The cumulative surplus for 2014 is R66.00 billion compared to R54.31 billion in 2013.

For further information, visit the SARS website.