Lower Exports of Diamonds/Metals Hits South Africa's Trade Surplus

Finance and Trade
01/09/2016 10:24

South Africa posted a sharply lower trade surplus in July, hit by falling exports of precious metals and stones, including gold and diamonds. The surplus decreased to 5.2 billion rand ($356 million) from 12.5 billion rand ($860 million) in June, Bloomberg, reported, adding nine economist estimates expected a surplus of around 8 billion rand. The rand’s 27 percent drop against the dollar in 2016 has boosted exports, even as demand in South Africa’s largest trading partners was subdued. Low metal prices and the worst drought in more than a century have weighed on Africa’s most-industrialized economy, which will probably not grow at all this year, according to the central bank.