* Trade account revisions exceed central bank's estimates
* FDI almost triples, outflows reverse in Q3
* Spending growth slows, growth likely to be hit
By Xola Potelwa
PRETORIA, Dec 3 (Reuters) - South Africa's current accountdeficit widened in the third quarter to its biggest in fiveyears despite positive revisions to trade numbers, increasingthe economy's vulnerability to external shocks.
Overall spending growth slowed in the quarter, withhouseholds constrained by stricter lending and the effect oflabour strikes on wages, reducing hopes of a consumer-driveneconomic recovery in 2013.
Analysts said South Africa was among the most exposed of theso-called "fragile five" economies, which also include India,Turkey, Indonesia and Brazil, with a poor growth outlook and notenough reserves to defend its currency.
South Africa's strong demand for imports came at a higherprice in the third quarter because of the weak rand exchangerate, which worsened the terms of trade for Africa'sbiggest economy.
The current account deficit expanded to 6.8 percent of GDPfrom a revised 5.9 percent in the second quarter, the largestdeficit seen since 2008, the South African Reserve Bank said inits December Quarterly Bulletin on Tuesday.
The Bank had previously reported a 6.5 percent gap in thesecond quarter. That shortfall dropped after the revenue serviceincluded trade with neighbours Botswana, Lesotho, Namibia andSwaziland, with which South Africa runs a large surplus.
"This quarter's deficit is essentially a strongerdeterioration than any seen," said Anisha Arora of 4Cast, addingthat the deficit would remain volatile well into next year.
Excluding trade with neighbouring countries, the deficitwould have been more than 7 percent, bank officials said. Thehighest deficit in South Africa's recent history was in thethird quarter of 2008 when the gap rose to 7.8 percent of GDP.
The bank said the deficit was financed mainly by direct andportfolio investments, which are seen at risk of drying up whenthe U.S. Federal Reserve begins to scale back its monetarystimulus programme, making the rand more vulnerable.
"The global backdrop, the U.S. Fed and the ongoing miningwoes will all contribute to uncertainty and volatility ofinflows and outflows to the emerging markets and South Africanassets," it said in its quarterly report.
Foreign direct investment almost trebled in the thirdquarter, resulting in the financial account more than doublingas a proportion of GDP, to 9.5 percent.
The rand retreated after the data and was down nearly 1.2percent by 1117 GMT.
The yawning deficit and South Africa's relatively smallreserves and weak growth outlook leave the rand exposed. Thespectre of Fed "tapering" has also helped knock the currencyabout 20 percent lower versus the dollar this year.
Separately, the quarterly bulletin showed spending growth inthe economy moderated in the third quarter, with householdsconstrained and the finance ministry putting a lid on increasedspending by government departments.
Growth in spending slowed to an annualised 1.9 percent inthe third quarter, from 2.7 percent in the second quarter.
Analysts said the downward trend in household consumptionexpenditure, which makes up a significant proportion of GDP,means overall economic growth is likely to fall short ofofficial forecasts of around 2 percent this year.