Perceptions of economic and financial conditions of households in 2000

Abstract

'The economy grew by 3,0 per cent in 2000. This was the fastest growth since 1996, buoyed by a strong recovery in household consumption spending and an increase in exports of over 7 per cent in real terms' (Trevor Manuel, Minister of Finance, Budget speech, 21 February 2001). 'Growth won't solve our problems. The faster the economy grows, the faster will be the creation of jobs for the highly skilled. So there will be more, not fewer, problems with income disparity' (Iraj Abedian, Standard Bank Group Economist, cited in Financial Mail , 2001a). The aim of this article is to examine the extent to which economic growth, experienced in 2000, improved the financial and economic conditions of South African households, by analysing a national representative survey of 2 700 adult South Africans conducted by the Human Sciences Research Council in September 2000. The survey results were analysed by disaggregating data by race, gender, area type, province and Living Standard Measure (LSM). The theme emerging from this article is that although the majority of households were negatively affected financially and economically, proportionally more Africans, women, rural residents and poor households were hardest hit. Although South Africa achieved a 3 per cent economic growth rate in 2000, there is limited evidence to suggest that this growth trickled down to the majority of households.