South African Reserve Bank records a widening account deficit of R82.8 billion in quarter 2 of 2025 Image: The Economic Times
(The Post News) – South Africa’s second-quarter current account deficit increased more than expected in 2025, following weaker export performance and higher import prices, according to the most recent quarterly report from the South African Reserve Bank (SARB) released on Thursday, 11 September.
The gap rose to 1.1% of gross domestic product (GDP) in April–June, from a revised 0.6% shortfall in the first quarter. In rand terms, the gap rose to R82.8 billion ($4.72 billion), from R47.8 billion in the previous quarter.
This is the seventh consecutive quarterly deficit, which indicates structural trade challenges in the economy.
Trade Surplus Declines
South Africa‘s trade surplus also fell to R177.1 billion in the second quarter from R211.0 billion in the first. This decline was spearheaded by a R23.3 billion fall in goods and services exports, with lower export volumes particularly weighing on earnings.
Imports increased modestly, however, as firmer foreign prices prevailed over weaker demand. Import value, reported by the Reserve Bank, was boosted by about a third of the fall in exports, further cutting into the trade surplus.
The difference has widened at a time of increased global trade tensions. U.S. President Donald Trump earlier in the year levied tariffs on all trading partners. South Africa was hit with a 30% duty for exporting to America, apart from some mining goods.
Economists say that the tariffs have diminished South African competitiveness abroad, adding to local issues such as weak industrial production and port congestion.
Economic Risks and Outlook
Analysts warn that the growing deficit leaves South Africa more dependent on foreign capital to service its external obligations.
“The current account weakening is due both to global headwinds and structural weaknesses in the South African economy,” said a Johannesburg-based economist. “If the exports don’t rebound, the rand could take a hit again.”
Notwithstanding these risks, the Reserve Bank said financial account inflows are still stable, counterbalancing the deficit and ensuring balance of payments stability in the near term.
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