South Africa has biggest trade surplus on record in December

South Africa’s trade surplus was the biggest on record in December as imports shrunk 26 percent from the previous month.

The R17.2 billion (US$1.3 billion) positive balance compares with the previous month’s revised R3.3 billion (US$250 million) surplus, the Pretoria-based South African Revenue Service said in an emailed statement Thursday.

Key Insights:

  – The surplus eases pressure on the current account, which is the broadest measure of traded goods and services. The rand has weakened 9.9 percent against the dollar since the start of 2018, battering confidence even as President Cyril Ramaphosa has pledged to attract US$100 billion of investment over 5 years.
  – Imports by Africa’s most-industrialized economy plummeted 26 percent from month earlier to R85.6 billion (US$6.5 billion), the least since July 2017. The biggest decline by value was in machinery imports, which decreased 31 percent, or R8.1 billion (US$615 million).
  – Exports decreased 13 percent from November to R102.7 billion (US$7.8 billion), led by a 19 percent drop in shipments of precious metals and stones.
  – The trade surplus for 2018 was R11.3 billion (US$854 million) compared with a positive balance of R76.7 billion (US$5.8 billion) a year earlier.

Source: Bloomberg News