/ 6 March 2002

TRADE LEVELS EXPECTED TO EASE

JANUARY’S foreign merchandise trade was likely to have been affected somewhat by the clearing of backlogs following industrial action at South Africa’s ports late last year, according to SCMB Securities. Previewing the release of South Africa’s external trade balance in Pretoria at 2pm on Thursday, SCMB Securities said that in December, imports fell by 25% largely as a result of operational constraints at the ports. January’s figures would probably reflect some “correction” and one was likely to see imports recover substantially. “It would therefore be prudent not to read too much into the monthly data. “However, more longer-term trends indicate that exports and imports are easing, a consequence of the economic slowdown in SA’s major export markets and the rand’s weakness. “These trends will probably be sustained until late into the second quarter.” – Sapa