As SA records its biggest trade deficit in 10 months, economists warn that trade tensions could keep the trade account in the negative for the next few months. SA recorded a trade deficit of R5.5bn in October, attributable to exports of R122.32bn and imports of R127.87bn, data from the SA Revenue Service showed on Friday. This is the first of the data from the fourth quarter, which could see the current account widen. The balance of trade is an indicator of the difference in value between the country’s imports and exports and dictates SA’s current account, which is indicative of SA’s trade with the rest of the world. SA has recorded a trade deficit for the past three months, mainly as a result of an acceleration in import demand. “The dismal trade performance in 2018 is one of the major disappointments of what turned out to be difficult year for SA,” said NKC economist Elize Kruger.
Despite the resilience of the global economy and a notable depreciation in the rand exchange ra...
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