(Adds details)
JOHANNESBURG, June 21 (Reuters) – The deficit on South
Africa’s current account widened to 4.9 percent of gross
domestic product in the first quarter, its biggest in more than
three years, mainly because of higher net dividend payments to
off-shore investors in the quarter.
In its June Quarterly Bulletin which reports on data from
the first quarter, the South African Reserve Bank said on
Thursday the shortfall on the current account had expanded from
3.6 percent in the previous quarter.
A stronger rand and lower domestic supply had led to smaller
export proceeds over the first quarter.
The value of export earnings contracted by 2.4 percent in
the first quarter compared to 6.4 percent expansion in the
fourth quarter of last year as prices fell in tandem with a 0.4
percent contraction in volumes, which were hampered by lower
demand and domestic supply constraints, especially in the mining
sector.
Merchandise imports nudged up 0.3 percent in value and the
price of imports declined due to lower inflation in the trading
countries and a firmer rand in South Africa.
The Reserve Bank said the pace of foreign portfolio capital
inflows increased in the first three months of the year compared
to the last quarter of 2011, resulting in 50.5 billion rand of
flows compared to 19.9 billion rand in the fourth quarter.
The bank said the gap in the current account continued to be
adequately funded by foreign inflows.
(Reporting by Xola Potelwa; Editing by Ed Cropley)
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