Since the crisis, the weak recovery in the advanced economies constrained South Africa’s export growth which impacted adversely on the trade account of the balance of payments, particularly at a time when the exchange rate was relatively strong in response to strong capital inflows to emerging market economies.
The current account of the balance of payments widened significantly in 2012 when it measured 6,3 per cent. This deterioration was driven in part by strong import growth, particularly those related to infrastructural expenditure investment by the state-owned enterprises.