South Africa’s trade position continued to improve in May as export prices rose faster than import prices, extending a trend that has strengthened the country’s trade surplus. Statistics South Africa reported that export prices increased 11.8% from a year earlier, while import prices fell 3.1%, improving the nation’s terms of trade. Metal products, machinery, and equipment were the biggest contributors to both the rise in export prices and the decline in import costs. Although the stronger trade environment offers a welcome boost, economists remain cautious about the broader economy, with growth forecast to reach just 1.2% this year. Ongoing global uncertainty, weak consumer confidence, and delayed business investment continue to weigh on economic activity, despite encouraging signs, including stronger vehicle sales and modest expansion in private-sector business activity.
IOL