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July's trade balance surplus has moderated to R36.96 billion, compared to June's revised surplus of R54.48 billion.
The South African Revenue Service on Tuesday released trade statistics for July, which came in below the Bureau for Economic Research's estimate of R47.2 billion. Bloomberg's consensus was for a surplus of R48.1 billion.
Both exports and imports declined between June and July. Total exports of R145 billion are down 11.2% on a month-on-month basis. Total imports came to R108 billion and decreased 0.7% between June and July.
South Africa's Durban and Richard's Bay ports were negatively impacted by unrest during July, Fin24 previously reported.
Investec economist Lara Hodes noted that trade performance was negatively impacted by the unrest, coupled with a cyberattack on Transnet operations, which resulted in a force majeure.
However, year-on-year, both exports and imports have increased, by 18% and 27.6% respectively.
The trade balance surplus for the year to date was still substantially better than recorded last year. From the start of the year to the end of July, the trade balance surplus was R289.99 billion, compared to a trade balance surplus of R94.88 billion recorded last year.
"Imports are expected to remain subdued as weak domestic consumption and investment activity persist," said Hodes. "Lockdowns associated with the third wave and the unrest and looting in the country, are likely to have dampened both business and consumer sentiment, exacerbating SA’s already fragile predicament," she added.
