As China continues its ambitious shift towards a services-and consumption-led economy, and remains engaged in a trade dispute with the US – the world’s largest producer of goods and services – there will inevitably be an impact on South African exports.
SA exporters shipped goods worth R1.247tr, or 25.5% of nominal GDP, during 2018. That is equal to a quarter of all produced goods and services. In the same vein, the country imported goods worth R1.231tr, or 25.2% of nominal GDP, during the same year, according to data from Sars and Stats SA.
This data also shows that during the first three quarters of 2019, goods worth R956.26bn, or 25.4% of nominal GDP, were exported and merchandise worth R953.75bn, or 25.3% of nominal GDP, was imported. For a breakdown of SA’s top export destinations and the origins of imports, see the accompanying tables in this article.
For such an open economy, or an economy reliant on trade, the happenings in the world’s two largest economies are important as this will have a direct impact on local economic output and, subsequently, job creation and tax receipts for the government. And when two of SA’s top three trade partners are in a tussle, or at “war” as some commentators refer to the US and China tariff dispute, local policymakers should take note.
China shipped R198.9bn worth of goods to SA during the first ten months of 2019. Exports to China from SA totalled R116.6bn, trade data from Sars shows. The second-largest economy in the world accounted for 18.5% of all SA imports and 10.8% off all exports during the first ten months of 2019, trade statistics show. The bulk of exports to China comprise mineral products, iron and steel, which totalled R103.1bn, or 88.4% of all exports to this country, in the first ten months of 2019.
This story is from the 16 January 2020 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the 16 January 2020 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
