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

3. Chairman and Chief Economist Efficient Group 81 Dely Road Hazelwood 0081 Tel: (012) 460-9580 Cell: 082 456 0204 Email: dawie@efgroup.co.za Dawie Roodt

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

5. Demand

6. Inflation

7. Interest Rate

8. Credit Extension

9. Credit Demand

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

11. Consumption Expenditure by Households Source: SARB

12. Supply

13. Savings to disposable income of households Source: SARB

14. Fiscal Policy

15. Gross Fixed Capital Investment

16. Gross Fixed Capital Formation to GDP

17. GDP at Market Prices

18. Fiscal Policy

19. Gold Trevor’s reign!

20. Fiscal Policy

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

23. Revenue

24. Contribution to Fiscus

25. Expenditure

26. Spending Priorities

27. Redistribution (2006 Rands) Rand In : Rand Out Ratio2006/07 32 22215.14 74 0003.39 115 0001.41 155 0000.71 195 0000.48 270 0000.28 1 000 0000.05

28. Results

29. Balance of Payments

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

31. www. efgroup.co.za