Current account deficit widens in the second quarter
South Africa's current account deficit widened to 2.3% of gross domestic product in the second quarter from a revised 0.9% in the first quarter, central bank data showed on Thursday.
In rand terms, the current account balance for the April-June period recorded a deficit of R160.7-billion from a revised R63.7-billion deficit in the preceding three months.
The trade surplus narrowed to R31.1-billion in the second quarter of the year from R110.6-billio in the first quarter.
"The increase in the value of imports of goods and services mainly reflected higher volumes while the decrease in exports of goods and services reflected lower prices," the South African Reserve Bank said in a statement.
South Africa's weakening fiscal position due to low growth, lower commodity prices, sustained imports for renewable projects and exchange rate fluctuations widened its current account deficit, Nedbank economists said in a note this week.
The current account deficit or surplus is measured as a percentage of GDP and reflects a country's international transactions with the world.
The National Treasury had projected a current account deficit of 1.8% of GDP in its February budget.
Economists have also highlighted that higher wages and poor revenue collections would impact the country's budget deficit this year.
A downward revision to gross domestic product growth forecasts and other key metrics is expected in the medium-term budget policy statement in October.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
