South Africa’s Current Account Deficit Declines Significantly in Q4 2024

South Africa’s current account deficit reduced to ZAR 31.6 billion in Q4 2024 from ZAR 55.6 billion in Q3. This was the smallest shortfall since Q3 2023, with a trade surplus expanding to ZAR 232.9 billion. While improved, the deficit was worse than anticipated by markets.

In the fourth quarter of 2024, South Africa’s current account deficit decreased to ZAR 31.6 billion, down from a revised ZAR 55.6 billion in the previous quarter. Notably, this figure exceeded market expectations, which anticipated a shortfall of only ZAR 3 billion. This development marked the smallest current account deficit since the third quarter of 2023.

The improvement in the current account was attributed to a widening trade surplus, which increased to ZAR 232.9 billion in Q4 from ZAR 200.4 billion in Q3. This growth resulted from a higher value of goods exports outpacing that of merchandise imports, reflecting positive trade dynamics in the South African economy.

In summary, South Africa’s current account deficit showed significant improvement in Q4 2024, shrinking considerably from the previous quarter. The notable increase in the trade surplus, driven by stronger goods exports relative to imports, contributed to this positive shift. Despite this progress, the actual deficit was higher than market estimates.

Original Source: www.tradingview.com