​The flow of funds in the domestic economy expanded in 2012 and was supplemented by large inflows from the foreign sector, as renewed interest in emerging markets’ debt securities surfaced among global investors.This note analyses the movement of funds across surplus and deficit sectors that participated in the South African economy, in pursuit of their investment and financing interests during 2012. Investment and financing behaviour was influenced by broader macroeconomic conditions, the regulatory environment, and the risk-return profiles of the various financial instruments. The quarterly accounts for 2012 are attached to this note, whereas the annual summary account is presented on pages S–46 to S–47 of this issue of the Quarterly Bulletin.