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.
