Johannesburg — South Africa’s current account balance switched to a deficit of 2.6% of gross domestic product in the final quarter of 2022 from a small surplus in the third quarter, central bank data showed on Thursday.
In rand terms the current account deficit for the October-December period was 174.0 billion rand from a surplus of 3.1 billion in the previous quarter.
The trade surplus fell to 12.2 billion rand in the fourth quarter from 248.8 billion rand in the third quarter, as the value of the country’s imports increased while that of exports decreased.
“The increase in the rand price of imported goods and services was broad-based, however the prices of machinery and electrical equipment, travel services and transportation services increased the most. The decrease in the rand price of exported goods and services reflected decreases in price of mining exports, especially mineral products and platinum group metals,” the central bank explained.
Data showed on Tuesday that South Africa’s economy contracted by 1.3% in the fourth quarter as rolling power cuts contributed to most sectors from agriculture to mining shrinking.
*Nellie Peyton, Editing: Alexander Winning – Reuters
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