'Value of SA’s current account deficit smallest it has been in a year'

The Sarb released its quarterly bulletin, indicating some good news for the country’s economy.

Picture: Reinart Toerien/EWN.

CAPE TOWN - The South African Reserve Bank (Sarb) has announced the value of current account deficit is the smallest it has been in a year.

The Sarb released its quarterly bulletin earlier today, indicating some good news for the South African economy.

Although the value of what is being imported still exceeds what the country is exporting, the margin has narrowed.

The report shows the country's current account deficit has fallen significantly from first quarter's 5.3 percent of GDP to 3.1 percent in the second quarter.

Market analyst Jana van Deventer says, "This is an indication that South Africa is starting to live more within its means. In other words, we're seeing that the import-export imbalances are correcting to some extent."

She adds, the increase in exports on the back of stronger commodity prices have assisted in securing a trade surplus in quarter two.

"In terms of the import component, the value of import remains supported. We did see that import volumes are coming off and this is an indication of South African consumers tapering their consumption demand given the challenging economic environment."