Share

Current account deficit narrows as exports pick up

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
loading...
Loading, please wait...

Pretoria -The shortfall on South Africa's current account deficit narrowed more than expected in the final quarter of 2014 as exports rose on reduced strike activity and improved conditions in some export destinations, the South African Reserve Bank (Sarb) said on Tuesday.

In its latest quarterly bulletin, Sarb said the more competitive exchange value of the rand during the fourth quarter had also helped ease the deficit.

The deficit shrank to 5.1% of gross domestic product from a revised 5.8% in the third quarter. The trade balance improved to a R35bn shortfall from R77bn.

On a year-on-year basis, the deficit on the current account was narrower at 5.4% of GDP in 2014, compared to 5.8% in 2013.

The rand firmed against the dollar after the data was released, reaching a session high of R12.3550 at 08:03 GMT.

Pronounced increases in exports of platinum group metals as well as coal and iron ore were the main contributors to the uptick in exports volumes, while electricity constraints saw a decline in the export of copper and aluminum, the Reserve Bank said.

The export of manufactured goods also rose in the fourth quarter of 2014 for a second consecutive quarter, according to Sarb.

Spending grew at an annualised 0.3% in the fourth quarter of 2014 after rising 3.2% previously, with slowed government spending offsetting accelerated growth in household spending.

READ: Slower state spend offsets household growth

Spending by government increased at an annualised 1.0%, while spending in households ticked up grew at an annualised 1.6%, Sarb said.

Read this for free
South Africans need to be in the know if we want to create a prosperous future. News24 has kept the country informed for 25 years, and we're about to enter a new chapter of fearless journalism. Join our free subscription trial to unlock this story and a world of news aimed to inform, empower, and inspire.
Try our free 14-day trial
Already a subscriber? Sign in
heading
description
username
Show Comments ()
Rand - Dollar
18.98
-0.4%
Rand - Pound
23.99
-0.4%
Rand - Euro
20.52
-0.3%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.4%
Platinum
900.15
+0.4%
Palladium
1,000.00
-0.2%
Gold
2,213.05
+0.8%
Silver
24.68
+0.2%
Brent Crude
86.09
-0.2%
Top 40
68,324
+1.0%
All Share
74,499
+0.8%
Resource 10
57,210
+2.8%
Industrial 25
103,820
+0.5%
Financial 15
16,514
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders