Balance of Payments and International FDI Position in South Africa: FY2019/20

South African merchandise export earnings have grown consistently since 2017. The faster export earnings have not been sufficient to improve South Africa’s current account balance. The balance of payments has improved and gross official reserves have increased due to the improved capital and financial account surplus and the increasing inward foreign direct investment (FDI) inflows. These capital flows have improved South Africa’s balance of payments and the country’s net international FDI position. Nonetheless, South Africa’s balance of payments is projected to deteriorate to a deficit in 2020 before recovering in 2021 onwards, which is projected to support steady gross official reserves in the medium-term.