NO CAUSE FOR CONCERN
SA’s current account deficit – the trade balance less net payments for “invisibles” – widened to 3,1% of gross domestic product in first quarter 2011 from 1% in fourth quarter 2010. At those levels there’s not yet cause for concern. Stanlib’s Kevin Lings says SA’s import intensity is likely to rise as domestic expenditure improves, which implies increased pressure over the next year.
Current account as % of GDP