As the month draws to a close, Sars has released its preliminary trade statistics for January.

The data suggests that the country recorded a preliminary trade balance deficit of R23.05b in January, but what does this mean?

The World Economic Forum explains: “A country has a trade deficit when the value of its imports exceeds the value of its exports. Trade deficits can be damaging, but they also bring welcome economic benefits.”

Latest data

Sars states that the preliminary trade balance deficit is due to exports of R139.36b and imports of R162.41b.

“These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia. The year-to-date (January 1 to January 31) preliminary trade balance deficit of R23.05b is a deterioration from the R4.64b trade balance surplus for the comparable period in 2022.

“Against January 2022, the January 2023 exports increased by 6.1% (from R131.39b to R139.36b), while imports increased by 28.1% (from R126.76b to R162.41b),” says Sars.

Sars noted that on a month-to-month basis, exports decreased from R162.83b to R139.36b (-14.4%) between December 2022 and January, while imports increased by R4.56b from R157.85b to R162.41 (2.9%) over the same period.

“The December 2022 preliminary trade balance surplus was revised downwards by R0.45b due to the ongoing vouchers of correction. The revision was from the preliminary trade balance surplus of R5.43b to the revised trade balance surplus of R4.98b,” Sars adds.

Botswana, Eswatini, Lesotho and Namibia data excluded

If trade data with Botswana, Eswatini, Lesotho and Namibia (BELN) is excluded, January recorded a preliminary trade balance deficit of R30.26b.

Sars says this is due to exports of R126.81b and imports of R157.07b. “Exports decreased by R20.82b (-14.1%) between December 2022 and January 2023 and imports increased by R3.22b (2.1%) over the same period. The preliminary cumulative trade balance deficit for 2023 is R30.26b compared with R2.63b trade balance deficit during 2022.”

BELN data

Trade statistics with the BELN countries for January 2023 recorded a preliminary trade balance surplus of R7.21b as a result of exports totalling R12.55b and imports of R5.34b.

“Exports decreased by R2.67b (-17.5%) between December 2022 and January 2023 and imports increased by R1.34b (33.4%) over the same period. The preliminary cumulative trade balance surplus for 2023 was R7.21b compared to R7.26b in 2022.”

Read the full report and see graphs here.