SOUTH AFRICA SWINGS INTO Q2 CURRENT ACCOUNT DEFICIT AMID RISING OIL COSTS

South Africa’s current account moved into deficit in the second quarter of 2026 after recording a strong surplus during the opening three months of the year, with higher import costs linked to the ongoing conflict in the Middle East putting pressure on the country’s external position. Data released by the South African Reserve Bank showed that the current account deficit stood at 2.6 per cent of gross domestic product between April and June, compared with a surplus of 2.3 per cent recorded in the first quarter.

In monetary terms, the country recorded a current account deficit of 205.5 billion rand, equivalent to about $12.81 billion, during the second quarter. This represented a sharp reversal from the 181.6 billion rand surplus recorded between January and March. The central bank attributed the deterioration largely to a significant narrowing of South Africa’s trade surplus, which fell to 146.4 billion rand from 428.8 billion rand in the previous quarter.

The South African Reserve Bank said the value of crude oil and refined petroleum imports rose significantly during the period as global energy markets faced increased supply concerns linked to the ongoing war in the Middle East. The value of South Africa’s crude oil imports increased by 82.1 per cent in the second quarter, while the actual quantity imported rose by only 1.8 per cent, highlighting the impact of higher international prices on the country’s import bill.

South Africa remains heavily exposed to movements in global energy prices because it imports most of the fuel consumed domestically. The rise in petroleum costs has therefore placed additional pressure on the country’s trade position and broader economic outlook as the conflict continues to disrupt energy markets and raise concerns over global supply.