Weak Rand, Cheap Oil Fall Short on South African Current Account

South Africa’s efforts to shrink the current-account deficit are falling short as the benefits of a weaker rand and low oil prices are negated by power shortages and the broader slump in commodities.

The gap on the measure, the broadest gauge of trade in goods and services, probably narrowed to 5.8 percent of gross domestic product in the fourth quarter, down 0.2 percentage point from the prior period, the median estimate of 12 economists surveyed by Bloomberg shows. The National Treasury forecast an average 4.5 percent deficit for the year in the Feb. 25 budget.