SA's current account deficit widens more than expected in Q2

JOHANNESBURG - South Africa’s current account deficit has widened more than expected in the second quarter of the year, as exports drop.

The current account is now at R82.8 billion from a revised R47.8 billion in the first quarter.

The reserve bank released its latest report on the balance of payments on Thursday, giving insights into how the country trades with the rest of the world, including exports, imports, income flows and current transfers.

As a share of GDP, the current account deficit widened to 1.1% in the second quarter of 2025 from 0.6% in the first quarter.

This is the seventh consecutive shortfall in the current account.

"South Africa’s trade surplus narrowed further from R211.0 billion in the first quarter of 2025 to R177.1 billion in the second quarter as the value of goods exports decreased more than that of merchandise imports," according to the report.

The value of exports of goods and services decreased by R23.3 billion, reflecting lower volumes.

The total value of imports, including services, increased by a third of that amount due to higher prices.

The deficit comes as trade tensions continue across the world after US President Donald Trump imposed tariffs on all trade partners.

South Africa has been slapped with a 30 percent levy on exports to the US, with the exception of some mining commodities.