SA posts third trade surplus running
1 September 2009
South Africa's economy is likely to recover as its balance of trade improves, an economic analyst said on Monday after the country posted its third consecutive monthly trade surplus.
Jaanre Fourie of Metropolitan Asset Managers was commenting on data released by the SA Revenue Service showing that South Africa had posted a trade surplus of R0.4-billion for July.
"Even though the trade surplus for July was smaller than in June, it was still the first time in six years that South Africa managed to post three consecutive months of trade surpluses," Fourie said.
The trade surplus declined from June's R3.2-billion to R0.4-billion in July, while imports picked up by a strong 10.5% month-on-month.
The biggest increases in imports came from mineral products and transport equipment, Fourie noted.
Exports increased for the third consecutive month, posting a 3.4% month-on-month increase in July.
Fourie said exports of mineral products and base metals were the biggest drivers of the increase.
"The trade balance has improved significantly in 2009 – the cumulative deficit for the year thus far is at R14.6-billion, compared with the R45.8-billion deficit posted over the same period one year ago," she said.
The current account deficit – due to be released later this week – should reflect this improved trade performance, Fourie added.
Sapa
