In the second quarter of 2023, South Africa’s merchandise exports saw a notable year-on-year decline, falling by 10.2% to R490 billion (constant rand terms) from R546 billion in Q2 2022, with a marginal drop of 0.1% from the previous quarter (Q1 2023). The fall in exports continues to be driven by a drop in mining exports, which saw a 20% decline due to a fall in the price of coal. Growth in imports moderated, slowing down to a year-on-year increase of 1.5%, amounting to R481 billion in Q2 2023, and a 2.3% decrease from the previous quarter. The moderation of imports resulted in a reversal of the trade deficit experienced in the first quarter of 2023, with South Africa’s trade balancing amounting to R9.6 billion.