Presented by: Dawie Roodt 30 January 2007 2007: Finding the Balance.

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Presentation transcript:

Presented by: Dawie Roodt 30 January : Finding the Balance

Chairman and Chief Economist Efficient Group 81 Dely Road Hazelwood 0081 Tel: (012) Cell: Dawie Roodt

Coming Together Demand Inflation Interest Rates Debt Demand Supply Saving Investment GDP Current Account Fiscal Policy GNP

Demand

Inflation

Interest Rate

Credit Extension

Credit Demand

Household Debt and Debt Servicing Cost to Disposable Income Source: SARB / Own calculation

Consumption Expenditure by Households Source: SARB

Supply

Savings to disposable income of households Source: SARB

Fiscal Policy

Gross Fixed Capital Investment

Gross Fixed Capital Formation to GDP

GDP at Market Prices

Fiscal Policy

Gold Trevor’s reign!

Fiscal Policy

Summary  Increased Revenue  Increased Expenditure  Lower Deficit  Lower Debt  Support Consumption Expenditure

Revenue

Contribution to Fiscus

Expenditure

Spending Priorities

Redistribution (2006 Rands) Rand In : Rand Out Ratio2006/

Results

Balance of Payments

How to Fix the Problem?  Lower corporate tax  Increase consumption tax  Increase capital expenditure  Decrease current expenditure

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