S. Africa’s current account deficit narrows in Q3 ’24

South Africa’s current account deficit narrowed to R70.8 billion in the third quarter of 2024, from a revised R75.3 billion in the second quarter. As a percentage of gross domestic product (GDP), the current account deficit remained stable at 1.0 per cent during the same period.

The trade surplus in South Africa saw a slight decrease, from R179.5 billion in the second quarter to R177.0 billion in the third quarter. This decline was driven by a greater decrease in the value of goods exports compared to merchandise imports. The reduction in both exports and imports of goods and services was attributed to lower volumes and prices.

The shortfall in the services, income, and current transfer account narrowed for the second consecutive quarter, from R254.7 billion in the second quarter to R247.8 billion in the third quarter.

Moreover, while the income account deficit widened, a reduction in deficits in the services and current transfer accounts helped lower the overall shortfall.

As a proportion of GDP, the deficit in the services, income, and current transfer account decreased slightly to 3.4 per cent from 3.5 per cent in the previous quarter.

South Africa’s terms of trade, including gold, improved marginally in the third quarter, as the rand price of imports decreased more than that of exports.

Attribution: Current account release – December 2024

Subediting: M. S. Salama