South Africa current account gap widens more than forecast
South Africa’s current-account deficit widened more than expected in the fourth quarter of 2023, as dividend and interest payments to foreign investors resulted in the biggest outflow since the second quarter of 2022.
The overall balance on the current account, the broadest measure of trade in goods and services, expanded to an annualized deficit of 2.3% of gross domestic product, or R166-billion, from a revised 0.5% of GDP in the prior quarter, the South African Reserve Bank said in a statement on Thursday.
The median estimate of eight economists in a Bloomberg survey was for a shortfall of 1.2% of GDP.
South Africa has now posted a current-account gap for a seventh straight quarter.
The deficit meant the full-year shortfall was 1.6% of GDP, the deepest in four years.
The deeper-than-expected quarterly deficit was largely driven by a bigger shortfall on the services, income and current transfer account of R253.7-billion in the fourth quarter, compared R215.4-billion in the prior three months.
The main contributor to the increased shortfall was a larger deficit on the primary income account “mainly be attributed to higher dividend payments by companies across the board,” the central bank said.
The data may weigh on the rand, which is among the worst performing emerging-market currencies tracked by Bloomberg this year. It has depreciated 2.7% against the dollar.
Comments
Research Reports
Projects
Latest Multimedia
Showroom
For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...
VISIT SHOWROOM
Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
