Johannesburg - South Africa’s trade deficit widened to the highest in at least four years as oil importers increased purchases to benefit from lower prices.
The trade gap swelled to 21.3 billion rand from 2.9 billion rand in September, the Pretoria-based South African Revenue Service said in an e-mailed statement today.
The median estimate of 16 economists surveyed by Bloomberg was for a shortfall of 6.3 billion rand.
The oil price has dropped 37 percent since June, leading to lower inflation forecasts and prompting importers to step up their purchases.
The volume of South African crude purchases rose 72 percent in October from the month before, revenue service data shows.
“Relatively sizable trade deficits are likely to remain a feature in the coming quarters,” Kamilla Kaplan, an economist at Investec in Johannesburg, said in an e-mailed note to clients before the data was released.
The trade shortfall so far this year widened to 95.11 billion rand compared with 73.08 billion rand for the same period in 2013, the revenue service said.
Imports surged by 17.8 percent to 110.32 billion rand as purchases of mineral products, which include oil, rose by 7.16 billion rand, or 33.5 percent.
Machinery and electronics purchases advanced 14.9 percent, while imports of vehicles and transport equipment rose 24 percent.
Exports decreased by 1.8 percent to 89 billion rand in October as shipments of precious metals and stones fell by 2.12 billion rand, or 13.6 percent, and vegetable products dropped by 38 percent.
The monthly trade figures are often volatile, reflecting the timing of shipments of commodities such as oil and diamonds.
The revenue service revised its data in November last year to include trade with Botswana, Lesotho, Namibia and Swaziland. - Bloomberg News