This is what is driving SA’s current account surplus
In SA’s case, it is due to a collapse in consumer demand that has resulted in lower imports, coupled with a big increase in the price of the commodities SA exports
After posting current account deficits for 17 years, SA recorded a current account surplus for the first time in 2020. According to the SA Reserve Bank, the current account surplus narrowed to 3.7% in the fourth quarter of 2020, from 5.9% in the third quarter.
What is driving this current account surplus — and what factors could potentially turn this surplus into a deficit?..