​The national financial account shows the flow of funds among institutional sectors of both real and financial transactions. The flow of funds represents the linkages between institutional sectors’ sources of funds, such as savings and borrowings, and the uses, such as investment in financial and non-financial assets.South Africa’s national financial account for 2019 reflected the continuation of the longest downturn in economic activity on record as well as low consumer and business confidence, culminating in a technical recession from the second half of the year. Economic conditions were also affected by drought and severe power outages.This note reflects the impact of economic conditions on the various institutional sectors’ transactions. The quarterly national financial accounts for 2019 are appended to this note, and the annual summary is published on pages S–48 and S–49 of this Quarterly Bulletin