The South African current account deficit narrowed to -R32bn in Q4 2024 from a revised deficit of -R56bn in Q3 (-R71bn previously). The latest outcome outperformed consensus expectations of -R70bn.

As a percentage of GDP, the current account shortfall improved to -0.4% in Q4 compared to -0.8% in Q3.

For 2024 as a whole, the recorded current account deficit was -0.6 %, a notable improvement from -1.6 % in 2023.

A widening trade surplus in the final quarter of 2024 (R233bn vs R200bn in Q3) drove the improvement in the Q4 current account. This, in turn, was a result of exports expanding by more than imports during the quarter. Goods and services exports increased by R61bn, while the import counterpart increased by only R24bn.

Positively, South Africa’s terms of trade improved in Q4 due to a higher rand price of exports and lower import prices.

In contrast to the trade balance, the balance on services, income and current transfers deteriorated slightly in Q4 after an improvement in Q3 (-R265bn from -R256bn in Q3).