S. Africa’s current account deficit significantly narrowed in Q2, surplus at R187.4b

South Africa’s current account deficit narrowed significantly in the second quarter of 2024, decreasing from R106.9 billion in the first quarter to R64.6 billion, according to latest data by the central bank on Thursday.

The deficit now stands at 0.9 per cent of GDP, down from 1.5 per cent in the prior quarter.

This improvement followed a rise in the trade surplus, which increased to R187.4 billion from R165.8 billion as export values surged while imports grew at a slower pace.

Higher export prices drove the surplus in goods exports, while both volume and price increases led to rising import values. The deficit in services, income, and current transfers narrowed to R252.1 billion from R272.7 billion, mainly due to a reduced shortfall in the primary income account, despite widening deficits in services and secondary income accounts.

South Africa also saw further improvement in its terms of trade, with the value of exported goods and services exceeding that of imports.

Attribution: South African Reserve Bank

Subediting: Y.Yasser