Loading...
See More

Current account deficit seen widening

Jun 18 2012 13:01 Reuters

Related Articles

SA's current account deficit swells

SA's deficit, spending back rate hike

SA's current account deficit widens

Current account deficit shrinks

SA's deficit narrows sharply

Current account deficit widens

 

Johannesburg - South Africa’s current account deficit is likely to have swollen to 4.5% of GDP in the first quarter of this year from 3.6% the previous quarter, a Reuters poll showed.

The 10 economists surveyed forecast that the deficit, due to be reported on Thursday, will have widened due mainly to reduced exports to Europe - South Africa’s largest trading partner - which is struggling on through a debt crisis.

“We are looking for quite a significantly wider trade deficit on the quarter, largely on the back of a deteriorating trade balance,” said Jeffrey Schultz, macro strategist at Absa Capital.

Fourteen economists saw inflation in Africa’s biggest economy, due out on Wednesday, braking to 5.95% in May, just below the top of the Reserve Bank’s 3% - 6% target band, from 6.10% the previous month.

On a month-on-month basis, the pace of rise in consumer prices is forecast unchanged at 0.4% in May.

CPI has been posting lower prints in recent months, in line with central bank predictions, and inflation looks likely to average around 6.0% for the second quarter, especially with relatively few price categories analysed in May.

“May is a low survey month, so the main drivers are likely to be food and fuel prices,” said Elize Kruger, economist at Kadd Capital.

 
current account deficit  |  sa economy  |  gdp

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

The Fast and Furious R40 million

With the Fast and the Furious 7 hitting South African cinema’s this April, all eyes are on the cars and we’re in for a treat!

 
 

Luxury living

This is the most expensive burger in the world!
Exclusive food items that WILL break the bank
Top 10 most expensive homes in the world
You can permanently live on a ship and sail the world!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote

Loading...