South Africa’s trade deficit widened to 5.1% of the gross domestic product (GDP) in the fourth quarter, due to exports dipping despite the weak rand, according to the latest figures from the South African Reserve Bank.
“Anything larger than the international benchmark of 3% of GDP puts pressure on the rand exchange rate,” Johannesburg-based economist, Colen Garrow, was quoted by Bloomberg news agency as saying.
The trade gap more than doubled to R57 billion in the fourth quarter as exports, excluding gold, fell to R969 billion rand. Imports rose R1.1 trillion in the same period, reported Bloomberg.
