Trade balance edges close to a surplus

A JUNE jump in SA exports narrowed the trade deficit, bringing it close to a surplus. According to Stats SA figures, the trade deficit continued narrowing to R0.183-billion from a R1.7-bn deficit in May. Exports increased 7% month-on-month (m/m) to a total of R60.160-bn from R56.240-bn in May. Imports, meantime, also climbed, increasing to R60.344-bn from R57.9-bn in May (+4.2% m/m). “The more favourable trade balance, despite remaining in deficit territory,” said Standard Bank economics researcher, Shireen Darmalingam, “is a welcome reprieve after reflecting an average monthly deficit of R6.5-bn in the year-to-date.” Progressive figures so far this year reflect a trade deficit of R34.2-bn compared to a deficit of R30.3-bn recorded in the first six months of 2007. Four product groupings – mineral products, chemicals, precious and semi-precious stones and vehicles – were the main driving force behind the June increase in exports.