SA’s exports drop, widening trade deficits

South Africa’s exports are declining, including its ‘black gold’, causing a widening deficit. Source: Transnet

Owing to a decline in coal and iron-ore exports and an increase in oil imports, South Africa saw its trade deficit widen during August.

According to business publication, Bloomberg, exports declined by 5.9% to R87.6 billion, led by a 20% drop in shipments of minerals products. Imports rose 3.6% to R97.6 billion as purchases of vehicle and transportation equipment jumped 22%, while oil increased by 12%.

“The broadly unfavourable global growth prospects are likely to exert pressure on South Africa’s potential export growth,” said Investec economist Kamilla Kaplan.

 

 


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