2025.09.1109:00:00UTC+00South Africa's Current Account Deficit Expands in Second Quarter of 2025

South Africa's current account deficit, as a percentage of GDP, widened to -1.10% in the second quarter of 2025, marking a decline from -0.60% in the first quarter, according to the latest data released on 11 September 2025. The increase highlights ongoing economic challenges facing the nation as it navigates global market shifts.

The widening deficit underscores the expanding gap between national spending and savings within the South African economy. Factors contributing to the downturn may include increased imports or diminished exports, reflecting potentially adverse trade balances or enhanced investment outflows.

As South Africa grapples with this growing fiscal deficit, pressure mounts on policymakers to implement strategies that bolster economic stability. This shift could influence broader economic policy, including exchange rates and interest rates, potentially impacting both local and international investors monitoring the region's economic health closely. The coming quarters will be crucial as the government and financial institutions work to mitigate these growing imbalances.