South Africa posts second consecutive trade surplus in June

South Africa recorded a second consecutive monthly trade surplus in June as exports of vegetable products climbed, while oil imports also rose.

The surplus narrowed to 12.5 billion rand ($880 million) from a revised record 18.4 billion rand in May, the Pretoria-based South African Revenue Service said in an e-mailed statement on Friday. The median of nine economist estimates compiled by Bloomberg was for a surplus of 8.8 billion rand. The cumulative surplus for 2016 is 12.5 billion rand compared with a deficit of 22.95 billion rand in the same period last year.

The rand’s 18 percent drop against the dollar since the start of 2015 has boosted exports, which may help narrow the deficit on the current account that swelled to 5 percent of gross domestic product in the first quarter. Low metal prices and the worst drought in more than a century have weighed on Africa’s most-industrialized economy. GDP contracted 1.2 percent in the first quarter.

“The fact that the trade deficit has narrowed so much is obviously a positive thing for South Africa and perhaps it’s even one of the things supporting rand strength,” Kamilla Kaplan, an economist at Investec Ltd. in Johannesburg, said by phone before the release of the data. “Exports have done well, but if it wasn’t for the weak global growth we would have done even better.”

Exports rose 0.7 percent in June from a month earlier, while imports climbed 7.6 percent, led by a increase in mineral products, which includes oil.

The rand pared losses after the release of the data, and was 0.2 percent weaker at 14.1587 per dollar at 2:13 p.m. in Johannesburg on Friday. Yield on rand-denominated government bonds due December 2026 fell one basis points to 8.73 percent.

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

The South African Revenue Service (SARS) has released trade statistics for June 2016 recording a trade balance surplus of R12.53 billion. The cumulative trade balance surplus (01 January to 30 June 2016) of R12.52 billion is an improvement on the deficit for the comparable period in 2015 of R22.95 billion. These figures include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS).

Including trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)

The R12.53 billion trade balance surplus for June 2016 is due to exports of R105.22 billion and imports of R92.69 billion. Exports for the year-to-date of R556.41 billion are 11.3% more than the exports of R499.79 billion recorded in January to June 2015. Imports for the year-to-date of R543.90 billion are 4.0% more than the imports recorded in January to June 2015 of R522.74 billion.

May 2016’s trade balance surplus was revised downwards by R0.36 billion from the previous month’s preliminary surplus of R18.73 billion to a revised surplus of R18.37 billion as a result of ongoing Vouchers of Correction (VOC’s). Exports increased from May 2016 to June 2016 by R0.72 billion (0.7%) and imports increased from May 2016 to June 2016 by R6.56 billion (7.6%).

On a year-on-year basis, the June 2016’s R12.53 billion trade balance surplus is an improvement from the surplus recorded in June 2015 of R4.64 billion. Exports of R105.22 billion are 17.2% more than the exports recorded in June 2015 of R89.82 billion. Imports of R92.69 billion are 8.8% more than the imports recorded in June 2015 of R85.17 billion.

Trade highlights by category

The month-on-month export movements (R’ million):

The month-on-month import movements (R’ million):

Trade highlights by world zone

The world zone results from May 2016 (Revised) to June 2016 are given below.

Africa:

Trade Balance surplus: R18 950 million – this is a 22.6% increase in comparison to the R15 456 million surplus recorded in May 2016.

America:

Trade Balance deficit: R 761 million – this is a 21.7% decrease in comparison to the R972 million deficit recorded in May 2016.

Asia:

Trade Balance deficit: R11 654 million – this is a 111.4% increase in comparison to the R5 512 million deficit recorded in May 2016.

Europe:

Trade Balance deficit: R3 808 million – this is a 234.0% increase in comparison to the R1 140 million deficit recorded in May 2016.

Oceania:

Trade Balance surplus: R 84 million – this is an 18.0% increase in comparison to the R 71 million surplus recorded in May 2016.

Excluding trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)

The trade data excluding BLNS for June 2016 recorded a trade balance surplus of R3.10 billion. This was a result of exports of R93.06 billion and imports of R89.96 billion.

Exports decreased from May 2016 to June 2016 by R0.73 billion (0.8%) and imports increased from May 2016 to June 2016 by R6.53 billion (7.8%).

The cumulative deficit for 2016 is R38.85 billion compared to R74.33 billion in 2015.

Trade highlights by category

The month-on-month export movements (R’ million):

The month-on-month import movements (R’ million):

Trade highlights by world zone

The world zone results for Africa excluding BLNS from May 2016 (Revised) to June 2016 are given below.

Africa:

Trade Balance surplus: R9 519 million – this is a 27.8% increase in comparison to the R7 449 million surplus recorded in May 2016.

Botswana, Lesotho, Namibia and Swaziland (Only)

Trade statistics with the BLNS for June 2016 recorded a trade balance surplus of R9.43 billion. This was a result of exports of R12.16 billion and imports of R2.73 billion.

Exports increased from May 2016 to June 2016 by R1.45 billion (13.5%) and imports increased from May 2016 to June 2016 by R0.02 billion (0.9%).

The cumulative surplus for 2016 is R51.37 billion compared to R51.39 billion in 2015.

Trade Highlights by Category

The month-on-month export movements (R’ million):

The month-on-month import movements (R’ million):