S. Africa Q1 Current Account Deficit Widens Unexpectedly

(RTTNews) - South Africa's current account deficit increased unexpectedly in the three months ended March, figures from the South African Reserve Bank showed Tuesday.

The current account deficit rose to a seasonally adjusted 5.0 percent of the gross domestic product from 4.6 percent in the previous quarter. It was expected to fall to 4.1.

In value, the current account deficit was ZAR 211 billion in the second quarter against ZAR 191 billion in the three-month period to March. Meanwhile, economists had expected the deficit to narrow to ZAR 168 billion.

The South African economy contracted in the first quarter of this year. Real gross domestic product fell at an annualized rate of 1.2 percent.

This disappointing outcome also dragged the growth rate over four quarters down to a negative value - the first year-on-year contraction since 2009, when economic conditions were dominated by the global financial crisis.