South Africa’s current account deficit widened to an annualized 2.3% of GDP in Q2 2023, meeting analysts’ expectations. The country has now posted a current account shortfall for the fifth consecutive quarter. A slowing economy in China, South Africa’s primary trading partner, has reduced demand for its main export, commodities. The deteriorating current account and budget deficits are seen as vulnerabilities that make South Africa susceptible to external shocks.