SA’s current account deficit widens in second quarter

South Africa’s current account deficit widened more than expected in the second quarter from the first, and the trade balance swung to a deficit, the central bank said on Thursday.

The readings will dampen positive economic momentum generated on Tuesday by data showing GDP grew more than forecast in the second quarter. President Cyril Ramaphosa has promised to kick-start growth after a decade of stagnation.

Read: GDP growth is great but doesn’t signal a recovery

The current account deficit was 4% of gross domestic product (GDP), the South African Reserve Bank said, wider than the average 3% of GDP forecast by economists surveyed by Reuters and than the 2.9% shortfall in the first three months of the year.

The rand, which has gained more than 3% this week thanks the GDP boost, trimmed session gains to trade 0.17% firmer at 14.78 per dollar as of 0920 GMT.

The central bank said the quarterly trade balance swung to a deficit of R27.2 billion ($1.8 billion) in the second quarter from a surplus of R41.9 billion in the first.