South Africa recorded a deficit of R175-million for its trade with non-Southern African Customs Union trading partners in September after a deficit of R5,284-billion in August, according to Customs and Excise figures released on Monday.
South Africa’s foreign trade balance with its non-Southern African Customs Union trading partners was expected to have narrowed to a R3,9-billion deficit in September from the R5,284-billion deficit recorded in August, a survey by I-Net Bridge found.
Forecasts ranged from a R3-billion deficit to a R5-billion deficit, with all nine economists surveyed thus expecting a narrowing.
A record R7,746-billion deficit was recorded in July and the size of the deficit has surprised in recent months.
George Glynos, market analyst at ETM, commented: “It’s a pleasant change. Obviously there is a bit of a reduction of oil in that, but it’s also good to see that exports did quite nicely.
“It’s a much better figure than generally expected. It is supportive of the rand and suggests that the weakness in the currency might be having a positive impact on the trade figure.”
Mike Schussler, economist at T-Sec, said: “It’s only a R175-million deficit, and that’s amazing after the big deficits we’ve had recently. It will be good for the rand and good for the bond market.
“It’s a much smaller deficit than most people would have thought. The other thing is one must take trade figures with a pinch of salt because monthly they do vary quite a lot.” — I-Net Bridge