Trade deficit exceeds expectation

ALAN PEAT THE VALUE of exports declined by 14.7% month-on-month (m/m) to R23.8-billion in October from R27.9-bn in September, according to the latest figures from customs. The value of imports increased by 5% m/m to R29.6-bn from R28.2-bn in September. This saw the trade deficit widening to R5.8-bn from a deficit of R0.3-bn in September. Said Standard Bank’s economics researcher, Rashika Lalla: “Although the import of a warship and aircraft valued at R406-million boosted import numbers, the key driver behind the deficit remains the ‘weak dollar-strong rand’ scenario. “However, the deficit has widened beyond market expectations.”