South Africa recorded a trade deficit of R6.7 billion in July, said the South African Revenue Service.
“The trade deficit for July 2012 increased by R1 billion to R6.7 billion from a deficit of R5.7 billion in June 2012. Exports increased by R1.8 billion (2.9%) to R63.5 billion and imports increased by R2.8 billion (4.1%) to R70.2 billion,” said SARS on Friday.
Increased imports of machinery and electrical appliances, products of the chemicals or allied industries, and original equipment components were the main reasons to the increased trade deficit.
The cumulative deficit for the year to date is R57.3 billion compared to R6.9 billion in 2011.
“Domestic trade performance remained weak, with a seventh consecutive monthly deficit recorded in July,” said Nedbank economists, adding that the bank forecasts a current account deficit of 4.7% of gross domestic product this year.
“The performance of exports is not likely to recover significantly during the remainder of this year due to both global and domestic factors. These numbers do not alter our view of unchanged interest rates for the remainder of this year,” said the bank. SAnews.gov.za