South Africa’s current account balance switched from a deficit of R72.0 billion in the third quarter of 2025 to a surplus of R50.2 billion in the fourth quarter – the first surplus in two years.
This is according to data on the current account of the balance of payments for the fourth quarter of 2025 released on Thursday by the South African Reserve Bank (SARB).
The current account provides a summary of transactions between South African residents and the rest of the world, including trade in goods and services, income and current transfers.
The SARB attributed the improvement in the current account in the fourth quarter of 2025 to higher rand prices for exports and lower import prices.
“Similarly, the current account balance as a ratio of gross domestic product (GDP) switched to a surplus of 0.6% in the fourth quarter of 2025 from a deficit of 0.9% in the third quarter. On an annual basis, the deficit on the current account narrowed to R35.2 billion (0.5% of GDP) in 2025 from R48.0 billion (0.7% of GDP) in 2024.
“South Africa’s trade surplus widened substantially from R169.0 billion in the third quarter of 2025 to R282.2 billion in the fourth quarter as the value of merchandise and net gold exports increased while that of merchandise imports decreased,” SARB said.
The value of exports of goods and services in the fourth quarter of 2025 increased by R51.1 billion, reflecting higher prices, while the value of imports of goods and services decreased by R54.4 billion due to lower prices.
For 2025, the trade surplus narrowed slightly to R212.1 billion (2.8% of GDP) from R214.3 billion (2.9% of GDP) in 2024.
“The deficit on the services, income and current transfer account narrowed from R241.0 billion in the third quarter of 2025 to R232.1 billion in the fourth quarter. The narrower deficit stemmed from a smaller shortfall on the primary income account while the deficits on the services and current transfer accounts widened.
“As a percentage of GDP, the deficit on the services, income and current transfer account narrowed from 3.1% in the third quarter of 2025 to 3.0% in the fourth quarter and similarly narrowed on an annual basis from 3.6% in 2024 to 3.2% in 2025,” SARB said. -SAnews.gov.za
