Current account deficit grows
● Despite expectations of an improvement, the current account deficit continued to widen in the second quarter of 2017 — to 2.4% of gross domestic product from 2% the previous quarter.
The Reserve Bank’s quarterly bulletin, released on Thursday, said the country had a trade surplus for the third consecutive quarter.
The surplus widened to R64.6-billion in the second quarter of 2017, from R57.4-billion in the first, thanks to a faster increase in the value of exported gold and merchandise goods compared with imports.
Despite the trade surplus. the shortfall on the services, income and current transfer account continued to widen, from R91-billion in the first quarter of 2017 to R110-billion in the second.
In the period 2012-2016, South Africa had one of the largest current account deficits among emerging markets, with the shortfall often exceeding 6% of GDP.