New data shows that South Africans increased their wealth between 2011 to 2015 as GDP per capita rose by 3% in real terms – from R55,000 to R56,300 annually.
Similarly, real disposable income increased by 2% over the same period, from R32,600 to R33,660 annually, according to research conducted by Standard Bank.
The financial services company used national GDP per capita over the past 15 years and divide it into 3 time periods: 2000-2005; 2006-2010 and 2011-2015.
“We show that living standards for South Africans improved the most during the period 2000-2005, with GDP growth of 10%. The period 2011-2015 recorded the lowest per capita growth at just 2%,” Standard Bank said.
Similarly, analysis of disposable income per capita shows that average income for South Africans grew the slowest in the period 2011-2015, at 3%, versus 12% in 2000-2006 and 5% in 2006-2010.
Unsurprisingly, people living in Gauteng have the highest GDP per capita (R80,800 p/a), followed by Western Cape with R68,200 p/a.
According to Standard Bank, people in Northern Cape and Free State experienced the fastest growth in GDP per capita in the period 2011-2014.
GDP per capita, per province in 2014:
|2||Western Cape||R68 221|
|3||Free State||R57 337|
|4||Northern Cape||R56 559|
|6||North West||R48 977|
|7||Kwa Zulu Natal||R44 999|
|8||Limpopo Province||R38 390|
|9||Eastern Cape||R33 602|
In real terms, however, the purchasing power of individuals living in Gauteng declined by 6% between 2011 and 2014, whereas the Limpopo residents experienced the fastest growth (15%) in the same period, Standard Bank pointed out.
The Gauteng population meanwhile, has the highest personal income per capita (R70,000 p/a), followed by Western Cape with R67,000 p/a.
These are up from R62,500 p/a in Gauteng and R55,000 in the Western Cape in 2011.
Limpopo has the lowest personal income per capita, at R29,500 p/a, the bank said.
Annual personal income per capita by province in 2014:
|2||Western Cape||R67 390|
|3||Northern Cape||R45 084|
|4||North West||R40 707|
|5||Free State||R40 253|
|7||Kwa Zulu Natal||R38 080|
|8||Eastern Cape||R32 484|
GDP and personal income per capita in metros and other regions
Johannesburg metro contributes the biggest share in national GDP, at 15%. This is followed by Cape Town with 10%.
Combined, the 8 metropolitan municipalities contribute approx. 57% to total GDP in SA, Standard Bank said. Mining/industrial towns have higher GDP per capita due to lower population densities in those regions.
However, real GDP per capita in these regions declined from R106,0000 p/a in 2012 to R104,800 p/a in 2014.
Tshwane Johannesburg and Cape Town
Tshwane has the highest nominal personal income per capita (R79,100 p/a) followed by Johannesburg (R76,550) and Cape Town (R73,980 p/a).
However, between 2012 and 2014, the real per capita income in Tshwane and Johannesburg declined by 7% and 7.3% respectively, in contrast to Cape Town where real personal income per capita rose by 3.3%.
Of the metros, Mangaung has the lowest personal income per capita, at R47,800, the research pointed out.
On average, personal income per capita is higher in the metros (R58,000 p/a in 2014) than in mining/industrial towns (R50,960 p/a in 2014), despite higher population densities in the metropolitan areas.
Between 2012 and 2014, however, average income per capita for both metros and mining/industrial towns recorded near zero growth rates, Standard Bank said.
Source: Business Tech