SA’s current account deficit widened more than expected in the fourth quarter of 2017 to 2.9% of GDP from 2.1% the previous quarter. This was far higher than the Bloomberg economists’ consensus of 2%. But for the year, SA’s current account deficit narrowed to 2.5% in 2017 from 2.8% in 2016. The deficit came in at R137bn in the fourth quarter from R99bn in the third quarter, the Reserve Bank’s Quarterly Bulletin released on Tuesday in Pretoria showed. Although SA achieved a trade surplus for the fifth consecutive quarter, it was too small to offset a growing shortfall on its services, income and current transfer account. SA’s trade surplus narrowed from R92bn in the third quarter to R74bn in the fourth quarter of 2017 based on a faster increase of merchandise imports compared with net gold and merchandise exports. The increase in the value of both imported and exported goods was driven by lower volumes. The shortfall on the services, income and current transfer account continued to w...
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