Study shows surprising increase in wealth in South Africa
South African households’ real net wealth increased by an estimated R1 trillion from the onset of the second quarter of 2020 (Q2 2020) to the end of the year (Q4 2020).
This was a key finding in the latest Momentum-Unisa Household Wealth report, which shows that household wealth recovered despite Covid-19, the lockdown, job losses, and an economic contraction.
This recovery follows an estimated decline of R772.8 billion during the first quarter of 2020 that resulted from the introduction of lockdowns in many countries – including South Africa – to limit the spread of Covid-19.
Momentum-Unisa said that the real value (expressed in 2010-prices) of household net wealth increased to R7.7 trillion by the end of the fourth quarter of 2020. This is R236.3 billion higher than a year before.
The increase in household net wealth was even more spectacular when measured in nominal terms (current prices). It is estimated that household net wealth increased by R1.95 trillion from the end of Q1 2020 to the end of Q4 2020.
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