South Africa's current account returns to surplus in Q4 2025
South Africa's current account recorded a surplus of R50.2 billion in the fourth quarter of 2025, switching from a R72.0 billion deficit in the previous quarter. This marks the first surplus since the third quarter of 2023.
Trade surplus fuels current account turnaround
The current account balance shifted from a R72.0 billion deficit in the third quarter of 2025 to a R50.2 billion surplus in the fourth quarter, the first surplus since Q3 2023.
This was primarily driven by a substantial widening of the trade surplus, from R169.0 billion to R282.2 billion.
Exports of goods and services rose by R51.1 billion due to higher prices, while imports decreased by R54.4 billion from lower prices.
As a percentage of GDP, the current account moved from a 0.9 percent deficit to a 0.6 percent surplus in Q4 2025.
Annually, the current account deficit narrowed to R35.2 billion (0.5 percent of GDP) in 2025 from R48.0 billion (0.7 percent of GDP) in 2024.
Narrower services deficit and improved terms of trade
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.
This was mainly due to a smaller shortfall on the primary income account, despite wider deficits in the services and current transfer accounts.
As a percentage of GDP, this deficit decreased from 3.1 percent in Q3 2025 to 3.0 percent in Q4 2025.
Additionally, South Africa's terms of trade, including and excluding gold, improved in the fourth quarter of 2025, as the rand price of exported goods and services increased while import prices decreased.