China recovery could aid SA

Published Jan 18, 2013

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The recovery in China’s gross domestic product (GDP) growth to 7.9% year on year (y/y) in the fourth quarter 2012 from 7.4% y/y in the third quarter 2012 could aid SA in 2013 as it will boost its exports to China.

China is SA’s largest trading partner so what happens there has a sizeable effect on SA. SA exported R90.2 billion worth of goods to China in 2011‚ while it imported goods worth R103.2 billion from it. Bilateral trade in 2012 was expected to exceed R200 billion.

SA's bulk export volumes rose by 4.8% in 2012 to a record 148.4 million tons (Mt)‚ data from the Transnet National Ports Authority (TNPA) showed on Monday.

Bulk exports rose by 6.8% in 2011 after a 9.0% jump in 2010 and were up 9.2% y/y in the first nine months of 2012 before industrial action in the mining sector curtailed exports.

Chinese industrial production‚ which consumes SA exports such as iron ore and ferroalloys‚ rose to 10.3% y/y in December from 10.1% y/y in November after bottoming at 8.9% y/y in August. - I-Net Bridge

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