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Pricier narrowly imports SA’s current account surplus

The value of merchandise imports has reached all-time highs since the first quarter of 1960.

  • The country’s current account surplus was limited to R120 billion in the fourth quarter.
  • During the period, the value of imports of merchandise increased to a very high of R1.49 trillion.
  • Higher demand for foreign-produced goods, higher crude oil prices and a weaker rand pushed up the value of imports.

The value of imports of merchandise reached a high of R1.49 trillion in the fourth quarter, which contributed to narrowing the surplus on current accounts, data from the SA Reserve Bank (SARB).

The SARB on Thursday released the current balance for the fourth quarter. The surplus decreased to R120 billion, from the R216 billion raised in the third quarter.

The balance of the current account is an indicator of the health of an economy. It’s the difference between credits – income and receipts – and debits – imports and payments.

As a percentage of GDP, the surplus is 1.9%, compared to 3.5% recorded in the third quarter. On an annual basis, it has increased to 3.7% of GDP, compared to 2% recorded in 2020.

The country’s trade surplus decreased from R439 billion earlier to R324 billion. The SARB plays this on the increasing value of imports of merchandise, which exceeds the value of merchandise and gold exports.

“The value of merchandise exports rose sharply to an all-time high in the fourth quarter of 2021, while exports of goods recovered over the period,” the Reserve Bank said.

Increased demand for foreign-produced goods drove up volumes and prices of imports. In addition, a higher crude oil price during the period and a weak rand also contributed to higher values ​​of imported merchandise, the Reserve Bank said.

The country’s trading conditions declined in the fourth quarter as the marginal price of exports of goods and services declined, he added. For the year, trading conditions increased by 4.6%.

The deficit in services, revenue and current transfers decreased from R222 billion to R204 billion. This means that the deficit of the account, as a ratio of GDP, decreased slightly from 3.6% to 3.2%.

Pricier narrowly imports SA’s current account surplus

Source link Pricier narrowly imports SA’s current account surplus

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