South Africa’s current-account surplus for the second quarter missed estimates even as it widened to a record amid improving economic activity and growing exports following the easing of restrictions to curb the spread of Covid-19.

The balance on the current account, the broadest measure of trade in goods and services, widened to an annualized surplus of 5.6% of gross domestic product, or R342.8-billion ($24.2-billion), from a revised 4.3% positive balance in the previous quarter, the South African Reserve Bank said in a report on Thursday. While that’s the largest quarterly current-account surplus on record, it’s still less than the 6.7% median estimate of 13 economists in a Bloomberg survey.

Significant revisions to first-quarter data follow recent changes to the way that statistics authorities calculate GDP data, the central bank said in an emailed response to questions.

KEY INSIGHTS
* The smaller-than-anticipated surplus on the current account could weigh on the rand, which has gained 3.8% against the dollar since the beginning of the year. Persistent current-account deficits, together with a budget shortfall, which the Treasury sees at 9.3% of GDP for the fiscal year through March 2022, have been key risks for South Africa in the past as they make the country vulnerable to external shocks.

* The positive balance was mainly driven by an annualized trade surplus that widened to record high R613.7-billion. The value of merchandise exports rose to R1.8-trillion from R1.6-trillion in the first quarter, pushed up by higher volumes. The value of merchandise imports grew to R1.3-trillion from 1.27-trillion.

* The deficit on the services account, where tourism income makes up a large part, narrowed to 66.3-billion from R71.6-billion. While South Africa has reopened its international borders to business and leisure travelers, the tourism industry is still reeling from the virus-induced disruptions. Data for the three months through September is likely to show that a return to strict lockdown measures to curb a third wave of infections weighed on domestic tourism.

* The quarterly shortfall on the nation’s primary-income account, which reflects outflows due to dividends and interest payments to foreign shareholders, widened to R168.9-billion from R63.1-billion.