Cape Town – In June 2023, South Africa recorded a preliminary trade balance deficit of R3.5 billion, the South African Revenue Service (SARS) says.
This deficit was due to exports amounting to R167.6 billion and imports worth R171.1 billion, including trade with Botswana, Eswatini, Lesotho, and Namibia (BELN).
“The year-to-date (1 January to 30 June 2023) preliminary trade balance surplus of R5.6 billion is a deterioration from the R129.6 billion trade balance surplus for the comparable period in 2022,” SARS said in a statement.
In June 2023, export flows were R167.6 billion, a decrease of 8.3% compared to R182.9 billion in June 2022. On the other hand, import flows increased by 6.5%, rising from R160.7 billion in June 2022 to R171.1 billion in June 2023.
“On a month-to-month basis, exports decreased by R15.8 billion (8.6%) from R183.4 billion to R167.6 billion between May and June 2023, whereas imports decreased by R2.7 billion (1.6%) from R173.9 billion to R171.1 billion over the same period.
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“Export flows decreased in June, driven by iron ores and concentrates, vehicles for goods and vehicles for passengers.
“The value of imports decreased on the back of a decrease in importation of crude oils, telephone sets and unused postage stamps,” SARS said.
The decrease in export flows in June 2023 was mainly driven by declines in iron ores and concentrates, vehicles for goods, and vehicles for passengers. The value of imports decreased due to reduced importation of crude oils, telephone sets, and unused postage stamps.
The trade balance surplus announced for May 2023 at R10.2 billion was revised downwards to R9.6 billion due to ongoing vouchers of correction (VOC). When excluding trade with BELN, the preliminary trade balance deficit for June 2023 was R14.7 billion, with export flows at R151.6 billion and import flows at R166.3 billion.
Overall, the cumulative trade balance deficit for the year 2023 was R54.4 billion, a significant decrease from the R72.6 billion trade balance surplus recorded in 2022. Between May and June 2023, exports decreased by R15.7 billion (9.4%), while imports decreased by R2.4 billion (1.4%) during the same period.
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Compiled by Betha Madhomu
