PRETORIA, March 19 (Reuters) – South Africa’s current
account deficit narrowed to 3.6 percent of gross domestic
product in the fourth quarter of 2011 from a revised 4.1 percent
in the third quarter, helped by lower dividend payments to
non-residents.
However, in its March Quarterly Bulletin, released on Monday,
the Reserve Bank said the current account shortfall for the
whole of 2011 widened to 3.3 percent of GDP from 2.8 percent in
2010, largely due to a sharp deterioration during the second
quarter.
Analysts polled by Reuters had predicted a 4.1 percent gap
in the current account for the fourth quarter.
The deficit on the income and current transfer payments
account was at 93.1 billion rand ($12.3 billion) in the fourth
quarter, narrowing substantially from 137.8 billion rand in Q3.
The trade balance switched from surpluses at the start of the
year to a deficit in the final quarter as rising domestic demand
pushed imports higher.
However, the deficit on the current account was adequately
funded by portfolio flows, the Reserve Bank said.
($1 = 7.5948 South African rand)
(Reporting by Stella Mapenzauswa; Editing by Ed Cropley)
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