In terms of the trade account, despite the depreciation in the currency, slower growth in export volumes and the decline in commodity prices have meant that South Africa only experienced marginal growth in the nominal value of merchandise exports.
At the same time, the value of merchandise imports rose by 3.6 per cent in the third quarter of 2015, driven by a boost in the quantity and price of imports, as a result of the weaker rand. Intermediate and capital goods account for approximately three quarters of South Africa’s imports, and as such our demand for imports remains relatively price-inelastic.