South Africa’s current account deficit for Q4 2024 decreased to ZAR 31.6 billion from ZAR 55.6 billion in the previous quarter, although it was higher than expected. The trade surplus also increased, reaching ZAR 232.9 billion in Q4, reflecting stronger exports relative to imports.
In the fourth quarter of 2024, South Africa’s current account shortfall decreased to ZAR 31.6 billion, a significant reduction from the revised figure of ZAR 55.6 billion recorded in the preceding quarter. Despite this improvement, the deficit surpassed market predictions, which anticipated a much smaller shortfall of ZAR 3 billion.
This reduction resulted in the smallest current account deficit observed since the third quarter of 2023, attributed to an expansion in the trade surplus. The trade surplus grew to ZAR 232.9 billion in Q4, up from ZAR 200.4 billion in Q3. This growth was fueled by an increase in the value of goods exports, which outpaced the rise in merchandise imports.
In summary, South Africa’s current account deficit has shown notable improvement in Q4 2024, shrinking significantly compared to the previous quarter. However, it still exceeded market expectations. The trade balance played a critical role in this development, highlighting the importance of export growth in reducing the current account gap.
Original Source: www.tradingview.com
