Finally, there is the relatively inelastic nature of import demand with respect to capital equipment for the ongoing much-needed infrastructure expenditure, which we must not cut back on. There are tentative signs that we may have reached the turning point with respect to the adjustment process.
The current account deficit narrowed to 5,1 per cent of GDP in the final quarter of 2013, down from 6,4 per cent in the previous quarter, and although the trade deficit widened further in January to R16,9 bn, February saw a surplus of R1,7 bn, following a R6,1 bn increase in the value of exports, and a R12,5 bn decline in imports.