South Africa’s current account deficit narrowed to ZAR 31.6 billion in Q4 2024, down from ZAR 55.6 billion. This was the smallest deficit since Q3 2023, driven by a trade surplus increase to ZAR 232.9 billion. However, it was worse than the anticipated ZAR 3 billion shortfall.
In the fourth quarter of 2024, South Africa observed a reduction in its current account deficit, decreasing to ZAR 31.6 billion from a revised ZAR 55.6 billion in the preceding quarter. However, this figure was less favorable than market forecasts, which anticipated a shortfall of ZAR 3 billion.
This reduction marked the smallest current account deficit since the third quarter of 2023. Contributing to this improvement, the trade surplus expanded to ZAR 232.9 billion in Q4, an increase from ZAR 200.4 billion in Q3, as the value of goods exports outpaced that of merchandise imports.
In conclusion, while South Africa’s current account deficit showed a significant improvement in Q4 2024, it still fell short of market expectations. The widened trade surplus indicates a positive trend in export activities, suggesting resilience in the economy despite external pressures.
Original Source: www.tradingview.com
