June 2021 – Note on the flow of funds in South Africa’s national financial account for the year 2020
Last Modified Date:
2021-07-05, 02:44 PM
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South Africa’s national financial account reflects both real and financial transactions in the economy. The flow of funds illustrates the linkages between institutional sectors in the economy and their underlying economic activity. The purpose of the flow of funds is to describe the financing of various institutional sectors by sourcing funds through borrowing from counterpart sectors with savings, and using those funds for investment in financial and non-financial assets.
This note reflects the impact of the coronavirus disease 2019 (COVID-19) pandemic and lockdown restrictions on the various institutional sectors’ real and financial transactions in 2020. The pandemic has severely affected the already weak domestic economic activity as recessionary conditions have been prevailing since the second half of 2019. The quarterly national financial accounts for 2020 are appended to this note, and the annual summary is published on pages S–48 and S–49 in this edition of the Quarterly Bulletin.