South Africa trade deficit narrows

JOHANNESBURG, July 1 (AFP) : South Africa's trade deficit narrowed to 6.57 billion rand ($619 million, 453 million euros) in May, but fears of a hit from another protracted mining strike loomed. Imports fell by 5.9 per cent during the month, helping to slash the deficit from a revised level of 12 billion rand in April.

Economists had predicted that a five-month strike in South Africa's mining industry would bite hard in May, widening the gap between the value of imports and exports. The data was seen as giving some temporary relief to the beleaguered South African rand, which has slumped this year as the longest mining strike in the country's history has cut economic growth. But any rally may be short-lived.