South Africa’s current account deficit narrowed to ZAR 31.6 billion in Q4 2024, down from ZAR 55.6 billion in Q3, but was higher than the expected ZAR 3 billion shortfall. The trade surplus increased significantly, driven by higher goods exports compared to imports.
In the fourth quarter of 2024, South Africa’s current account deficit decreased to ZAR 31.6 billion, a drop from a revised ZAR 55.6 billion recorded in the third quarter. Despite this improvement, the deficit was larger than market predictions, which estimated a shortfall of ZAR 3 billion. This marks the narrowest current account gap since the third quarter of 2023.
The enhancement in the current account was primarily due to an expansion in the trade surplus, which grew to ZAR 232.9 billion in Q4, compared to ZAR 200.4 billion in Q3. This increase was driven by a rise in the value of goods exports, which outpaced the growth of merchandise imports during the same period.
In conclusion, South Africa’s current account deficit showed a significant reduction in the fourth quarter of 2024, although it exceeded market expectations. The widening trade surplus contributed positively to this outcome, highlighting the improvements in the country’s export performance over imports.
Original Source: www.tradingview.com
