The Covid-19 lockdowns led to some unusual economic developments in SA. Among them was that gross savings came to exceed all spending on new capital goods such as plant and equipment. As a result, already capital-light SA became an exporter of scarce savings.

Last year normal service was resumed, capex increased by more than savings and SA resumed net imports of foreign capital to fund the savings deficit. This also meant by dint of the national income accounting conventions that all SA incomes fell short of all spending in 2023, and the current account of the balance of payments went into deficit to balance the shortage of supply over demand, equivalent to a modest 1.6% of GDP. ..

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.