South Africa’s current account deficit decreased to ZAR 31.6 billion in Q4 2024, from ZAR 55.6 billion in Q3, despite exceeding market estimates of ZAR 3 billion. The trade surplus rose to ZAR 232.9 billion due to increased goods exports, marking the smallest deficit since Q3 2023.
In the fourth quarter of 2024, South Africa experienced a significant reduction in its current account deficit, which decreased to ZAR 31.6 billion. This figure is an improvement from the revised ZAR 55.6 billion deficit seen in the previous quarter. However, it exceeded market expectations, which forecasted a shortfall of only ZAR 3 billion.
This quarter marked the smallest current account gap since the third quarter of 2023, driven by a notable increase in the trade surplus. The trade surplus expanded to ZAR 232.9 billion in Q4, a rise from ZAR 200.4 billion in Q3, attributed to the growth of goods exports outpacing the rise in merchandise imports.
In summary, South Africa’s current account deficit narrowed significantly in the fourth quarter of 2024, although it remained higher than anticipated by market analysts. The growth in the trade surplus illustrates a favorable shift, attributed to robust export performance compared to imports. This development marks a positive trend for the country’s economic indicators.
Original Source: www.tradingview.com
