South Africa recorded a R4,9-billion trade deficit in January, largely owing to major decreases in exports of mineral products, machinery and electrical appliances and vehicles, aircraft and vessels.

This was compared with the prior month’s surplus of R10,3-billion, which buoyed by higher commodity exports, specifically in iron-ore, precious metals and base metals.

Exports from South Africa dropped by 17% to R44,7-billion in January, the South African Revenue Service (Sars) reported Monday.

Imports increased by 14% to R49,6-billion, which was up from R43,5-billion in December.

In January 2010, South Africa had recorded a deficit of R3,3-billion.
Year-on-year both imports into and exports from South Africa had increased in January 2011.

Nedbank Economics stated that the outlook for exports remained uncertain for 2011. The positive impact of higher commodity prices, which were rising on a recovering global economy, was likely to be limited by the still hesitant pace of the economic recovery.

Imports, on the other hand, were likely to benefit from improving consumer demand and rising imports of capital equipment on the back of the government’s infrastructure spending programme, noted the bank

“We forecast the current account deficit to widen to just over 4% of GDP this year, from about 2,7% in 2010,” added Nedbank.

Sars said that in the month under review, textile and textile article imports increased by R428-million or 34%, and base metals and articles thereof increased by R806 million, which represented a 51% increase.

Exports of vehicles, aircraft and vessels decreased by R2,2-billion, which was -48%, and exports of precious and semi-precious stones and metals decreased by R2,9-billion, which was a drop of 21%.