Business

China now SA's top trade partner

29 September 2009

Despite the global recession, South Africa's foreign trade with Asia remains robust and China is now the number one export destination after being fifth a year ago. It replaces the United States, which moves into second place.

Updated data from the Department of Trade and Industry (DTI) shows that for the first half of 2009, China was South Africa's number one export destination, with annual growth of a stellar 53.9%, while the US saw an annual decrease of 42.6% in exports. China took 11.9% of the total market, the US 8.3% and Japan 7.5%.

In 2008, according to customs data, Japan, the United States, and Germany were the country's top export markets, while Germany, China and the US were the top import markets.

China is now SA's biggest import market, pipping Germany, according to the latest DTI statistics.

Increased trade

Trade in South Africa has picked up markedly over the past decade. In 1998, exports only added up to R144.9-billion. By comparison, they ended 2008 at a very healthy R663.099-billion, although an overall deficit of R64.5-billion was seen.

South Africa's bulk export volumes surprised once again as they surged 29.01% year-on-year (y/y) in August from the whopping 36.82% jump in July, according to data supplied by the National Ports Authority of South Africa.

The current recession, though, has crimped back strongly on the level of trade, and exports are down 19.2% y/y (July data). However, the fall in imports has exceeded this, at -24.3% y/y.

Trade surplus

However, data this year has shows a number of surprise trade surpluses. South Africa recorded a surplus of R446.758-million for its trade with non-Southern African Customs Union trading partners in July, following a R3.221-billion surplus for June.

For the first half of 2009, the largest growth (relative to 2008) for significant export sectors, apart from unclassified goods, was for fruit and nuts (11%), but the number one sector was precious or semi-precious stones at 24% of the cumulative total, according to the DTI data.

The largest import growth among major goods took place for pharmaceutical products (6.3%), with the biggest sector being mineral fuels and oil at 20.3% of the total.

Sapa