* Current account deficit balloons to 6.4 pct of GDP
* Mining unrest may hit Q3 GDP -central bank
* Manufacturing rebounds in second quarter but outlook bleak
By Xola Potelwa
JOHANNESBURG, Sept 11 (Reuters) – South Africa’s current
account recorded its largest deficit in nearly four years in the
second quarter of 2012 as exports fell because of subdued
external demand that is likely to hit manufacturing throughout
the rest of the year.
The central bank also said labour unrest in the mining
sector – in particular, fallout from the police shooting of 34
striking miners at a platinum mine last month – might cause
economic growth to slump in the third quarter. A 30 percent rise
in mining output propped up the economy in the second quarter.
In its latest Quarterly Bulletin, released on Tuesday, the
bank said the current account gap widened to 200 billion rand
($24.5 billion) or 6.4 percent of GDP from 4.9 percent in the
first quarter, while state spending on wages pushed gross
domestic expenditure to 4.7 percent.
Economists had expected a deficit of only 4.7 percent
because of record portfolio flows into South Africa’s domestic
debt market ahead of its inclusion in the prestigious Citi World
Government Bond Index (WGBI) on Oct. 1.
Bond yields have hit a string of record lows since the WGBI
inclusion was announced in April, with index-tracking investors
forced to increase their holdings of South African debt.
Continued…
