THE deficit on South Africa’s trade account widened to its worst level in several years in October, partly reflecting the impact the global economic slowdown is having on the country.

A shocking R21.2bn deficit was recorded in October‚ following a R13.8bn deficit in September‚ South African Revenue Service customs and excise figures released on Friday showed. The closest deficit to the R21.2bn was R17.4bn, recorded in January 2009 when the economy was in recession.

Exports increased by R4.4bn to R61.1bn, while imports rose R11.8bn to R82.3bn.

"That is a massive amount and will mean that the current account deficit will remain huge," Meganomics economist Colen Garrow said.

The trade account has been in deficit since the beginning of this year‚ showing the extent to which exports are being affected by the slowdown in global demand and South Africa’s main trading partners. Strikes in the third quarter also negatively affected sectors that export commodities, including mining.

The implications of the worse than expected deficit are likely to be negative for the rand and current account.

"The numbers paint a gloomy picture for the current account balance‚ which in turn will impact negatively on the rand," Efficient Group economist Merina Willemse said.

Figures showed that the deficit from January to October was R104.6bn, compared with a cumulative deficit of just R9.4bn in the same period last year.

Nedbank economist Busisiwe Radebe said: "South Africa’s trade performance will remain weak in the coming months on the back of the unfavourable global and local economic environment.

"As a result of the substantially larger cumulative trade deficit‚ the current account deficit as a percentage of gross domestic product will deteriorate to well over 6% this year from 3.3% in 2011."