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.