South Africa’s trade deficit increased to R7.1bn in September, resulting in a record R26bn deficit for the 3<sup>rd</sup> quarter (see graph). After nine months of the year, it would seem that the 2008 trade deficit will at least be of the same magnitude as in 2007. These numbers indicate little relief for the current account deficit in 2008 and a figure of close to 8% of GDP is expected (7.3% of GDP in 2007).