WATCH: SA not saving for long term

2016-07-13 12:55
Post a comment 0

Cape Town - If the savings ratio continues to decline we will not have enough money to invest in the economy, says Chief economist at Old Mutual investment, Rian Le Roux.

A lack of investment contributes to a low economic growth rate, which means a rise in unemployment and a poor economy. At the moment we are investing more than saving.

Roux explains that the additional money to fill the gap, comes from foreigners who invest in our economy. If foreigners decide to no longer invest in our economy, then we are in trouble.

"It is important that we save more so that we can become less reliant on foreigners to finance investment," said Roux.

More savings means higher levels of investments which promote higher economic growth.

WATCH:

Consider yourself a savings hero? Or just have something on your mind? Add your voice to our Savings Issue:

* Write a guest post
* Share a personal story
* Ask the experts