South Africa’s Current Account Deficit Shrinks To 0.7% Of GDP In Q3, Trade Surplus Faces Future Pressure

South Africa’s current account deficit narrowed to 0.7% of GDP in the third quarter of 2025, down from 1% in the previous quarter, according to the latest Balance of Payments report from the Reserve Bank.

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Measured in rand, the deficit fell to R57 billion, an improvement from the revised R72 billion recorded in the second quarter. The report offers a detailed look at South Africa’s trade and financial flows with the rest of the world, including exports, imports, income, and transfers.

The latest figures signal some stabilisation in the country’s external accounts after a period of wider deficits.

Drivers Behind South Africa’s Current Account Improvement

The reduction in the deficit is largely due to a smaller shortfall in the primary income account, while the secondary income account remained steady. The trade account surplus, however, narrowed as imports grew faster than exports.

Despite the narrowing trade surplus, South Africa’s exports have shown resilience this year, and imports have remained relatively moderate. As a result, the current account has stayed close to levels seen in early 2024.

Outlook: Trade Surplus May Narrow Further Amid Global Challenges

Looking forward, Nedbank cautions that global demand is expected to remain subdued, limiting growth in export volumes. The country also faces higher tariffs in the US market compared with most competitors.

Some factors are likely to support the external balance, including robust gold and platinum prices, improved domestic energy supply, and smoother logistics.

However, lower interest rates and a stable rand may boost domestic demand, driving imports higher. As a result, Nedbank forecasts the trade surplus could continue to narrow into 2026.

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