South Africa First-Quarter Trade Gap Unexpectedly Narrows to $39.4 Million
South Africa’s trade deficit unexpectedly narrowed in May as a surge in exports of precious and semi-precious stones and metals outweighed an increase in imports of vehicles, aircraft and boats.
The deficit of 302 million rand ($39.4 million) followed a 1.9 billion rand shortfall in April, the South African Revenue Service said in an e-mailed statement today. The median estimate of 12 economists surveyed by Bloomberg was for a 2.5 billion rand deficit.
“It’s a good figure,” said Freddie Mitchell, an economist at Efficient Group in Pretoria. “Given international circumstances, the growth in exports is very encouraging. Exports could have been even higher had there not been a strike” at the state-owned transport company.
Exports rose 6.8 percent to 47.2 billion rand in May from the previous month, as shipments of precious and semi-precious stones and metals surged 37 percent, the revenue service said. Exports of mineral products, including coal, rose 5 percent.
Shipments of metals, wine and fruit were partially disrupted when workers at Transnet Ltd., the port and rail operator, embarked on a three-week strike on May 10. Several companies, including Exxaro Resources Ltd., ArcelorMittal South Africa Ltd., and Xstrata Plc, were forced to declare force majeure on metal and coal deliveries, enabling them to miss contracted deliveries.
Imports climbed 3.1 percent to 47.5 billion rand, with purchases of vehicles, aircraft and boats rising 40 percent, and mineral products increasing 7 percent, the Revenue Service said.
The rand traded at 7.6530 per dollar as of 2:57 p.m. in Johannesburg, down from 7.6363 before the release of the data and compared with 7.6652 late yesterday.
Trade figures are often volatile, reflecting the timing of shipments of commodities such as oil and diamonds.
To contact the reporter on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.net;
Rate this Page