More exports and higher commodity prices reasons for trade surplus in July
SA recorded a sixth consecutive trade surplus in July, following a growth in exports and recovery in commodity prices. The South African Revenue Service (SARS) recorded an R8.99bn trade surplus for July 2017, attributable to exports of R93.1bn and imports of R84.1bn. The year-to-date trade surplus of R36.63bn is an improvement on the R4.70bn deficit for the comparable period in 2016. Novare economist Tumisho Grater said lower import growth coupled with an increase in exports had been behind the positive trend. She added that the decline in imports mirrored the weakness of SA’s economy. "The positive trends seen in the trade balance figures are likely to continue for the remainder of 2017. This should provide an element of support for the current account and therefore the local unit," Grater. Investec economist Kamilla Kaplan said: "Import compression reflects subdued domestic demand amid depressed business and consumer confidence. Export growth has been aided by the lift in global i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.