South Africa’s current account deficit fell to ZAR 31.6 billion in Q4 2024 from ZAR 55.6 billion in Q3. This was the smallest shortfall since Q3 2023, though it exceeded market expectations of a ZAR 3 billion deficit, largely due to an increase in the trade surplus.
In Q4 2024, South Africa’s current account deficit decreased to ZAR 31.6 billion from a revised ZAR 55.6 billion in Q3. Despite this reduction, the deficit was greater than market expectations, which projected a shortfall of ZAR 3 billion. This marked the smallest deficit since Q3 2023 as the trade surplus expanded.
The trade surplus increased to ZAR 232.9 billion in Q4, up from ZAR 200.4 billion in Q3. This improvement was largely attributed to a rise in the value of goods exports, which outpaced the increase in merchandise imports, contributing to a healthier trade balance for the economy.
In summary, South Africa’s current account shortfall improved significantly in Q4 2024, yet remained larger than anticipated by analysts. The increase in the trade surplus, driven by higher exports, indicates a positive trend for the country’s economic balance.
Original Source: www.tradingview.com
