SA's trade deficit widens as exports drop

29 May 2015 - 16:42 By Amogelang Mbatha
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SARS Pretoria office. File Photo.
SARS Pretoria office. File Photo.
Image: Gallo Images/Foto24/Cornel van Heerden

South Africa’s trade deficit widened to R2.5 billion in April as exports declined more than imports in the month.

 The trade deficit compared with a revised R9 million shortfall in March, the South African Revenue Service (SARS) said in a statement on its website Friday. The median estimate of 16 economists surveyed by Bloomberg was for a deficit of R4.9 billion.

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A widening trade deficit has added to pressure on the current account, the broadest measure of trade in goods and services, and the rand. The current-account gap averaged 5.4% of gross domestic product in 2014 and will narrow to 4.5% this year, according to the National Treasury.

Exports declined 7.5% as machinery shipments decreased, while imports fell 4.8% in April compared with the previous month, led by vehicle and transportation equipment, the Revenue Service said.

Eskom is rationing electricity supply because its aging plants can’t meet demand. The shortage has “very severe” implications for growth prospects in Africa’s most-industrialised economy, according to the World Bank.

The monthly trade figures are often volatile, reflecting the timing of shipments of commodities such as oil and diamonds.

- Bloomberg

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