Review of South African private sector saving (1965 - 2007)

Abstract

The aim of the study is to assess the shortage of personal saving in South Africa. The analysis shows that net household saving has been impacted on by high levels of consumption of fixed capital. At a gross level, personal saving, albeit still low, has not imploded. Levels are low compared to most international countries, both developing and industrialised. Corporate saving played a key role in keeping gross national saving stable. A recovery in government saving is will be helpful and is already underway. Structural and demographic factors negate against a short term recovery in household saving. Saving incentives are insufficient. High dependency ratios and a skew income distribution are demographic factors which play a role in low personal saving levels.