Trade deficit broadens to R6.7bn

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Stock picture by Reuters.

South Africa's trade deficit widened for the first time in three months in July as imports of machinery offset a rise in chemical and mineral exports. The shortfall was R6.7 billion from R5.7bn in June, the SA Revenue Service (Sars) said on Friday. Economic growth will probably slow this year to 2.7 percent from 3.1 percent last year as the European debt crisis saps demand for manufactured goods. Weaker demand drove the trade deficit to R57.3bn in the first seven months of the year from R6.9bn in the same period last year. Exports added 2.9 percent to R63.5bn in July from the previous month, led by a 44 percent rise in chemical shipments, Sars said. Imports rose 4.1 percent to R70.2bn as machinery shipments lifted 14 percent and chemical purchases rose 28 percent. - Bloomberg