South Africa’s current account deficit saw a significant reduction in the fourth quarter of 2024, dropping to R31.6 billion from a revised R55.6 billion in the previous quarter. The improvement was largely driven by a stronger trade surplus, which rose from R200.4 billion to R232.9 billion due to higher export volumes and stronger commodity prices. While imports also increased, they grew at a slower rate than exports, further supporting the trade balance. As a percentage of GDP, the deficit improved to 0.4%, down from 0.8% in the third quarter. However, despite the positive trade balance, the country’s income account deficit widened, highlighting the continued outflows of dividends, interest payments, and profits to foreign investors.
For the full year, South Africa’s current account deficit narrowed sharply to R44.5 billion (0.6% of GDP), a substantial improvement from the R112.1 billion (1.6% of GDP) recorded in 2023. This was almost entirely attributed to the significant expansion in the trade balance, which more than doubled to R216.4 billion (3.0% of GDP). The Reserve Bank identified gold exports as the most significant contributor to the trade surplus, with higher physical gold shipments and record-breaking prices boosting revenue. Additional gains came from increased exports of platinum group metals, pearls, and semi-precious stones. On the import side, declines in the value of chemical products, machinery, and refined petroleum—particularly diesel—helped further widen the trade surplus.
While the transport and logistics sector showed slight improvements, the Bank acknowledged that ongoing challenges remained. The volume of cargo handled at ports increased from the third to the fourth quarter, contributing to higher export activity. However, logistical disruptions, including post-election unrest in Mozambique, affected mineral shipments through the Port of Maputo. The fourth quarter’s data marked the 11th consecutive period of current account deficits, though the annual figures suggest a stabilising trend. Moving forward, maintaining export growth and improving domestic infrastructure will be key to sustaining this positive trajectory in South Africa’s trade balance.