Publications
Partners
Johannesburg - South Africa posted a trade surplus of R5bn in May as exports of vehicles surged and machinery imports fell.
The surplus compared with a revised R1.4bn deficit in April, the Pretoria-based South African Revenue Service (Sars) said in an e-mailed statement on Tuesday. The median estimate of 14 economists surveyed by Bloomberg was for a deficit of R3.1bn.
An improvement in the trade account last month may help to further narrow the deficit on the current account, the broadest measure of trade in goods and services, and bolster the rand.
The current-account gap eased to 4.8% of gross domestic product in the three months through March from 5.1% in the previous quarter.
“We have not had any big strikes this year and it definitely has an impact on South Africa’s ability to export,” Jana van Deventer, an economist at ETM Analytics in Johannesburg, said by phone on Tuesday.
“This is positive in the short term, but South Africa would need positive trade numbers for some time before it will provide permanent support for the rand.”
The rand gained 0.6% to R12.1647 per dollar by 15:10 in Johannesburg, paring its drop this year to 4.9%. Yields on government rand bonds due December 2026 fell four basis points to 8.3%.
Car shipments
Exports rose 4.6% to R88.9bn, led by a 20% surge in shipments of vehicles and transport equipment, the revenue agency said. Machinery imports fell 7.4%, reducing overall purchases from abroad by 2.9% to R83.9bn.
South Africa exported 33 411 vehicles in May, more than double the amount shipped in the same month last year, the National Association of Automobile Manufacturers of South Africa said on June 1. The industry group estimates exports will increase by about 25% this year to a record 330 000.
The International Monetary Fund estimates the current- account deficit will probably narrow to 4.8% of the gross domestic product this year from 5.4% in 2014 as oil prices drop, lowering the nation’s external risk.
The monthly trade figures are often volatile, reflecting the timing of shipments of commodities such as oil and diamonds.
