• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

SA deficit narrows in Q4

Mar 19 2012 10:26

Related Articles

SA's trade account in R13.5bn deficit

SA's trade account in surplus

SA's trade account deficit narrows

Current account deficit widens

SA trade account in deficit

Deficit at 4.6% in 'good health' budget

 
Pretoria - South Africa’s current account deficit narrowed to 3.6% of gross domestic product (GDP) in the fourth quarter of 2011 from a revised 4.1% in the third quarter, helped by lower dividend payments to non-residents.

However, in its March Quarterly Bulletin, released on Monday, the Reserve Bank said the current account shortfall for the whole of 2011 widened to 3.3% of GDP from 2.8 % in 2010, largely due to a sharp deterioration during the second quarter.

Analysts polled by Reuters had predicted a 4.1% gap in the current account for the fourth quarter.

The deficit on the income and current transfer payments account was at R93.1bn in the fourth quarter, narrowing substantially from R137.8bn in Q3.

The trade balance switched from surpluses at the start of the year to a deficit in the final quarter as rising domestic demand pushed imports higher.

However, the deficit on the current account was adequately funded by portfolio flows, the Reserve Bank said.

Lower than expected

Dennis Dykes, chief economist at Nedbank said the lower than expected deficit is a "positive signal".

“The outlook remains one of a widening current account balance rather than a contracting one, simply because domestic demand has been increasing at a faster rate than total output.

"That does tend to suggest that we will see a widening in the current account deficit going forward, which will be alright if it’s because of investment rather than consumption reasons but the jury is still out,” he said.

Christie Viljoen of NKC independent economists said the figure was good.

"A narrowing current account is always good and higher spending growth is also obviously good. The fact that it’s the government is not surprising as it just keeps spending more and more, but it’s good to see that households are also doing the same.

“For economic growth it means we did not end 2011 as bad(ly) as expected. And when you look at interest rates, the healthier the economy is, the closer we will get to higher interest rates."
sarb  |  sa economy  |  deficit  |  gdp  |  state spending
NEXT ON FIN24X

PPI quickens to 8.2%

2014-04-24 12:23

 
 
 

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

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

SAPS waited too long to complain about ad - DA

The DA has told a public hearing that the SA Police Service was "hopelessly out of time" to lodge a complaint against its election advert.

 
 

Latest elections multimedia

13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille
The EFF's ad was banned, see why

Money Clinic

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