March 2007 - Note on flows of funds in South Africa’s national financial accounts for the year 2005
Z Nhleko and D H Meyer
Last Modified Date:
2020-10-01, 09:31 PM
Quarterly Bulletins > Articles and Notes
The flow-of-funds accounts, presented as an addendum to this note and on pages S-44 and S-45 of this issue of the Quarterly Bulletin, summarise the financial interrelationships that run through the monetary and financial statistics, national accounts, balance of payments and government finance statistics.All institutional sectors in the South African economy generate income, incur expenditure and adjust their balance sheets on a continuous basis. The national financial accounts provide an overview of these transaction flows in an integrated framework. By eliminating valuation changes in asset values to reflect only transaction flows, this note analyses both the real and financial flow-of-funds activities in the economy for the year 2005.Surveys and other sources of information available to the Research Department of the South African Reserve Bank are used to compile the flow-of-funds accounts. Twenty-one institutional sectors are balanced individually and consolidated into eleven economic sectors by way of contra-entry accounting in two-dimensional tables.