SA’s current account deficit widened more than expected in the third quarter, as the value and volume of exports fell amid weaker output data from the productive sectors of the economy. The surplus on the trade account in the second quarter — when gross domestic product (GDP) growth also lifted to a surprise 3.5% — swung to a small deficit in the third quarter, which led the current account deficit to expand to 4.1% of GDP, the Reserve Bank said on Friday. That is up one percentage point from a deficit of 3.1% in the second quarter, and compares with economists’ forecasts of between 3.3% and 4% of GDP. The deficit widened to R176bn in the third quarter from R123bn in the second quarter. The Reserve Bank said factors contributing to the widening deficit included weaker international demand for domestically produced goods; some strengthening in the exchange value of the rand, which more than offset the benefit from higher international commodity prices; and weaker demand for imports. ...
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