South Africa recorded a trade deficit of R9,1-billion in August, compared with July’s R9,4-billion shortfall, the South African Revenue Service said on Friday.
Economists polled by Reuters last week had forecast a deficit of R5,3-billion, but the number is notoriously volatile and hard to predict.
Compared with the previous month, exports rose by 0,8 % while imports increased by 0,1%.
The cumulative trade deficit for the first eight months of the year was R50,1-billion compared with R41,6-billion during the same period in 2006.
The rand moved to 6,8910 to the dollar before coming back to 6,88 to the dollar at 12h15 GMT, compared with 6,8825 before release of the data at 12h00 GMT. But analysts saw pressure on the currency later on.
”It is a bigger deficit than expected and it will definitely put the rand under pressure,” said Efficient Group economist Nico Kelder.
”There has been a general weakness in our exports, which is very concerning, especially from the auto industry,” he added.
Sustained gains in the rand between 2002 and 2003 eroded the value of South Africa’s exports and attracted relatively cheap imports, widening the country’s trade deficit and current-account gap.
The currency weakened about 10% against the dollar in 2006, knocked in part by the current-account shortfall.
The deficit on the current account narrowed to 6,5% of gross domestic products in the second quarter of 2007, from 6,9% in the first quarter and after widening to a near three-decade record of 7,8% in the fourth quarter of 2006.
Economists have predicted pressures on the trade balance in coming months relating to imports of oil and the inputs for government’s infrastructure building programme.
South Africa plans to spend over R400-billion over the next three years on roads, rail and stadiums ahead of its hosting of the 2010 Soccer World Cup. — Reuters