R5.1bn trade surplus is the third in a row

SOUTH Africa posted a R5.1 billion trade surplus in April following a revised R11.3bn surplus in March, SA Reserve Bank data showed yesterday. The trade account’s year to date position had improved to R9.9bn compared to the deficit seen in April 2016 (-R26.4bn), according to Standard Bank head of Commercial Banking Karl Gotte. The surplus was in line with the market expectations and with the country’s historical trends (2016 April posted a R0.4bn surplus). Investec economist Kamilla Kaplan said the improvement in the trade account was expected to be sustained this year. “The comparative strengthening bias in South Africa’s export growth is likely to remain intact if expectations of a sustained moderate lift in global growth and global trade momentum materialise,” she said. NKC African Economics senior economist Elize Kruger said monthly trade statistics were notoriously volatile, but with three consecutive monthly trade surpluses now recorded, the early indications for this year were indeed positive. “Export growth is supported by a moderate recovery in South Africa’s major trading partners and higher commodity prices,” she said. – Sizwe Dlamini