Trade deficit booms out of control

SA’s trade deficit has
boomed out of all
proportions this year,
according to SA Revenue
Service (Sars) figures.
These showed that the
trade deficit in October
was R21.2 billion – the
tenth consecutive such
deficit. This knocked
the market consensus of
R15.4bn out of the ring.
The deficit, said Sars,
was because exports
increased by R4.4bn
(7.8%), but imports
increased by R11.8bn
(16.7%) - mainly in
machinery and electrical
appliances, chemical
products and vehicles,
aircraft and vessels.
The cumulative deficit
for the 10-month period
reached R104.6bn,
compared to R9.4bn for
the same period in 2011.
Economists say
that the country’s trade
performance will remain
weak in the coming
months due to the
unfavourable global and
local environment.