environment in 2019
The Momentum Unisa Household Financial Wellness Insights
2019 report (pdf) explained that factors in the macro environment that can impact households and businesses are events like the Covid-19 pandemic, the US election, load shedding, corruption or Brexit to name but a few.
The markets may be volatile but you still have to take stock of your financial success. We have no control over global events, yet they have shaped our point of view. Now it’s time to get a fresh perspective, especially on our finances.
Did you know?
- Only 28% of the South African population are employed.
- 70% of SMEs experienced a drop in revenue, forcing them to change course by adapting or facing permanent closure.
- The bail out of state-owned enterprises and other government plans are expensive.
- Below inflation salary increases makes saving more difficult.
Household insights from the latest report
The SA economy was in deep trouble before Covid-19 and the lockdown. Ten years ago, just after the previous crisis, The Great Recession, the government projected that the economy would recover by 2012. It never happened - rather, an economic environment developed that prevented households and companies from flourishing.
Only 27.8% of the population has a job, only 13% earn enough to pay personal income tax and a tiny 0.5% earned a taxable income of more than R1 million a year. In contrast 19.2% are beneficiaries of social grants and 17.4% are unemployed.
Due to the slow growth in the size of the South African market, many SA companies decided to search for growth opportunities abroad, creating jobs in those countries. Simultaneously, SA started to import more goods and services (instead of producing ourselves), also creating jobs in other countries.