The current account deficit widened from 2,3 per cent of GDP in 2011 to 5,8 in 2013, with the trade account accounting for about half of this number. This deterioration has occurred despite the significant depreciation of the nominal effective exchange rate of the rand of over 22 per cent since the beginning of 2012.
Apart from the usual adjustment lags and J-curve effects there are a number of factors that could explain the slow response. First, to the extent that the depreciation is an adjustment to the declining terms of trade, it is cushioning the mining sector, rather than being a stimulus to further output and investment.