• Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

All data is delayed
See More

Current account deficit swells

Jun 21 2012 10:56
I-Net Bridge

Johannesburg - The deficit on South Africa's current account widened to 4.9% of gross domestic product (GDP) in the first quarter, its biggest in more than three years, mainly because of higher net dividend payments to offshore investors in the quarter.

In its June Quarterly Bulletin which reports on data from the first quarter, the South African Reserve Bank said on Thursday the shortfall on the current account had expanded from 3.6% in the previous quarter.

A stronger rand and lower domestic supply had led to smaller export proceeds over the first quarter.

The value of export earnings contracted by 2.4% in the first quarter compared to a 6.4% expansion in the fourth quarter of last year as prices fell in tandem with a 0.4% contraction in volumes, which were hampered by lower demand and domestic supply constraints, especially in the mining sector.

Merchandise imports nudged up 0.3% in value and the price of imports declined due to lower inflation in the trading countries and a firmer rand in South Africa.

The Reserve Bank said the pace of foreign portfolio capital inflows increased in the first three months of the year compared to the last quarter of 2011, resulting in R50.5bn of flows compared to R19.9bn in the fourth quarter.

The bank said the gap in the current account continued to be adequately funded by foreign inflows.

sarb  |  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
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

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

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote