South Africa’s current account position improved slightly in the third quarter of the year, according to data released by the South African Reserve Bank on Thursday. The deficit narrowed to 0.7% of GDP, down from 1.0% in the previous quarter, signalling a modest strengthening in the country’s external balance.
Measured in rand terms, the shortfall on the current account eased to 57.0 billion rand (about $3.34 billion) between July and September. This marks an improvement from the 72.2 billion rand deficit recorded in the second quarter.
However, the underlying figures show mixed dynamics. The country’s trade surplus — the difference between export and import values — shrunk to 178.3 billion rand, compared with 187.2 billion rand in the prior quarter. The central bank noted that this was mainly due to imports rising at a faster pace than exports, reducing the net contribution of trade to the current account. Despite the narrowing surplus, the improved current account ratio suggests that South Africa’s external finances remain relatively stable amid global economic headwinds.
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