South Africa’s current account deficit narrows

By Khanyisa Tabata
04 September 2009


The South African Reserve Bank has announced that the country’s current account is in deficit.

The current account is the difference between a country’s imports and exports of goods.

It also includes the payment of services and income received or paid to foreigners.

The Reserve Bank said attributed this to the trade balance coming into a surplus for the second quarter.

Imports of especially machinery and electrical equipment and cars receded strongly in the second quarter.


In 2009 South Africa recorded a capital inflow of R23.9 billion in the second quarter of 2009 compared with inflow of 2007.


Meanwhile, gross savings as a percentage of gross domestic product rose from a 15 percent low in the third quarter of 2008 to 16.5 percent in the second quarter of 2009.

The SARB said the investment improved in the saving performance because there is a growth in the gross saving of the private sector relative gross domestic product.