Current account deficit narrows as exports pick up | Fin24
 
  • Load Shedding Schedules

    Find information for Johannesburg, Durban, Cape Town and other cities.

  • Govt Pension Fund

    The fund says it would be wrong to dismiss R250bn Eskom bailout proposal without all the facts.

  • Sovereign Wealth Fund

    Questions around the fund's scope & mandate remain unanswered, writes Dr. Malan Rietveld.

Loading...

Current account deficit narrows as exports pick up

Mar 17 2015 10:30

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.

sarb  |  current account deficit  |  sa economy
NEXT ON FIN24X

 
 
 

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
1 comment
Comments have been closed for this article.
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...