South Africa Current Account Gap Largest in 1-1/2-Years

South Africa's current account deficit widened to ZAR 82.8 billion in Q2 2025, from a revised ZAR 47.8 billion in the previous three-month period. It was the largest current account shortfall since Q4 2023, as the trade surplus narrowed further to ZAR 177.1 billion from ZAR 211.0 billion in Q1. At the same time, the deficit on the services, income, and current transfer account widened slightly to ZAR 259.9 billion from ZAR 258.9 billion, driven by a larger income account deficit, even as the deficits in the services and current transfer accounts narrowed. The current account deficit as a ratio of gross domestic product (GDP) widened to 1.1% in Q2 from an upwardly revised 0.6% in the preceding quarter and above analysts' expectations of 0.7%.