South Africa’s current account deficit widened sharply to South African Rand (ZAR) 110.5 billion which is 2.4% of GDP, in the second quarter of 2017 from ZAR 91.5 billion (2%) of GDP the previous period.
Current Account is the sum of the balance of trade exports, excluding imports of goods and services, net factor income—such as interest and dividends— and net transfer payments like foreign aid
The 2.4% GDP increase is said to be because of an offset in increased trade surplus by a larger shortfall on services; income and current transfer payments, the central bank.
Also, a rise in the value of exported gold and merchandise goods, helped widen the trade surplus widened to 65 billion rand ($4.95 billion) from 57 billion rand in the first quarter, according to the Reserve Bank.
The services, income and current transfer account deficit widened to 3.8 percent from 3.3 percent as against the Q1 when ZAR rose 7.2 billion from ZAR 4.0 billion; the income deficit went up to ZAR 124.1 billion from ZAR 116.2 billion, and the current transfers gap rose to ZAR 43.8 billion from ZAR 28.7 billion.
Current Account in South Africa averaged -26840.78 ZAR Million from 1960 until 2017 meanwhile the rand was barely moved by the data, because as at 0820 GMT it traded 13.1225 per dollar. A 0.19% firmer at
However, transfers rose on a 42% year-on-year increase to 14 billion rand in the amount the country paid to its trading partners in Southern African Customs Union (SACU).