"Momentum/Unisa estimates that the real value (expressed in 2010 prices) of South African households’ net wealth decreased by R828.2 billion from the fourth quarter of 2019 (Q4 2019) to Q1 2020. This estimated real quarterly decline is 52.5% more than the previous largest estimated quarterly decline of R542.9 billion, which was registered during the Great Recession (Q3 2008). The loss in household real net wealth – from an estimated R7 043.6 billion in Q4 2019 to R6 215.4 billion in Q1 2020 – can in main be attributed to a sharp decline in the real value of households’ pension funds and other investments. The real value of their pension funds declined by an estimated R427.6 billion over the quarter and that of their other investments by R363.9 billion. These declines were mainly caused by three factors. This is the negative impact of the worldwide Covid19 pandemic; the subsequent lockdown, which in effect incapacitated the world and South African economy; and South Africa losing its investment grade credit rating."
Source details: Household Financial Wellness Index 2018; Compiled by Mr. Johann van Tonder, Researcher & Economist, Insights Division, Momentum, 081 041 9699 Ms. Jacolize Meiring, Bureau of Market Research, UNISA, 082 354 5777 Prof. Carel van Aardt, Bureau of Market Research, UNISA, 082 950 4325 Prof. Bernadene de Clercq, Department of Taxation, College of Accounting Sciences, UNISA, 083 442 4659