S. Africa trade deficit widens in quarter 2
South Africa’s current account deficit widened to 2.4 per cent of GDP in the second quarter, despite an improved trade surplus, as a larger shortfall on the services, income and current transfer payments weighed, the country’s central bank said yesterday.
The overall first quarter deficit was two per cent and economists surveyed by Reuters had expected a similar deficit for the second quarter.
The trade surplus widened to 65 billion rand ($4.94 billion) in the three months to end of June from 57 billion rand in the prior quarter, the Reserve Bank said in its September quarterly bulletin. “Contrary to the improvement in the trade balance, the shortfall on the services, income and current transfer account widened further in the second quarter,” the Reserve Bank said.