Current Account Deficit Declines; Economy Weakens

Current Account Deficit Declines; Economy Weakens

Lower imports during fourth quarter helped in keeping current account deficit in control. However, the bigger trouble for the economy is the lower spending, which touched low of year 2009 in fourth quarter.

As per the data released by Reserve Bank, the current account deficit declined to 5.1 percent during Q42013. Compared to high of 6.4 percent during third quarter, the current data would give some breather to Reserve Bank and the Ministry of Finance.

The yearly average CAD in 2013 was higher at 5.8 percent compared to 5.2 percent in year 2012. Market experts were expecting lower CAD at 4.7 percent. The decline in fourth quarter could be attributed to lower imports during the last quarter.

In January, the Reserve Bank increased repo rate. Rand has continued the downtrend that started in year 2013. Inflation and higher CAD will be headache for Finance Minister as the country goes for general elections in May this year.

The ongoing strike at platinum mines could spell further trouble for the economy in first quarter. The domestic demand is expected to stay low as people cut on spending during to higher prices.

User login

You May Have Missed...

Ted Cruz’s speech frightens a 3-year-old girl
Mon, 03/16/2015 - 13:29

On Sunday, US Sen. Ted Cruz was speaking against the Affordable Care Act, the current administration on the economy and national security, during...

Nigeria Update

World Malaria Day Draws Attention over Need for Renewed Commitment
Sat, 04/26/2014 - 12:48

The world commemorated the Annual Malaria Day on April 25 and the attention was drawn towards...

Economy Watch

President Obama Proposes $4 Trillion Budget, 15% goes to Defense
Tue, 02/03/2015 - 07:58

The Obama administration has proposed a $4 trillion budget on Monday. The budget has included $...

Health Tonight

NYC Health officials say majority of HIV-infected invidivuals have been diagnose
Sat, 02/28/2015 - 13:45

The city health officials have reported that a majority of New York City residents with human...

Science Tonight

Astronomers witness Multiple-Star System in Initial Stage of Formation
Sun, 03/15/2015 - 05:08

Astronomers said that for the first time they have observed a multiple-star system in the first...

UK News

Candy Crush Soda Saga boosts King Digital’s Q4 revenue and profit
Fri, 02/13/2015 - 05:32

The quarterly revenue and profit of King Digital Entertainment, mobile game maker beat market...


Astrazeneca’s Experimental Drug to Treat COPD Fails to Reduce Acute Exacerbation
Mon, 09/08/2014 - 13:17

On Monday, AstraZeneca PLC announced that Phase IIa study of benralizumab, an experimental drug...

US News

Students present a zombie apocalypse simulation to explain spread of disease
Fri, 03/06/2015 - 14:16

A group of students at the Cornell University have adopted a unique concept to explain how...

Technology Tonight

Barack Obama
Fri, 02/13/2015 - 08:59

It is highly probable that the President Barack Obama will announce a new plan with regard to...