September 14, 2017 / 8:18 AM / 2 years ago

South Africa's current account deficit widens in second quarter

A worker walks near a row of cars at BMW's manufacturing plant in Rosslyn, outside Pretoria, file. REUTERS/Siphiwe Sibeko

PRETORIA (Reuters) - South Africa’s current account deficit widened to 2.4 percent of GDP in the second quarter as an increased trade surplus was offset by a larger shortfall on services, income and current transfer payments, the central bank said on Thursday.

The overall deficit was wider than forecast by economists surveyed by Reuters, who had expected it to match the first quarter figure of 2.0 percent.

The rand was barely moved by the data, and at 0820 GMT it traded 0.19 percent firmer at 13.1225 per dollar.

A rise in the value of exported gold and merchandise goods, helped widen the trade surplus widened to 65 billion rand ($4.95 billion) from 57 billion rand in the first quarter, the Reserve Bank said in its September quarterly bulletin.

The services, income and current transfer account deficit widened to 3.8 percent from 3.3 percent, it said.

Transfers rose on a 42 percent year-on-year increase to 14 billion rand in the amount South Africa paid to its trading partners in the Southern African Customs Union (SACU).

In February, the Treasury had budgeted for SACU payments of 56 billion for the 2017/18 fiscal year, up 42 percent from 2016/17.

The net income deficit widened as both dividend payments to non-resident investors and dividend receipts from abroad fell, the bank said.

($1 = 13.1338 rand)

Reporting by Olivia Kumwenda-Mtambo; Editing by Ed Cropley and John Stonestreet

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below