Household expenditure in South Africa will rise from R279,1-billion in 1993 to an expected R673,4-billion this year, the University of South Africa’s Bureau of Market Research (BMR) said on Monday.
In real terms, this represents an annual increase of 2,5%, the BMR said in a statement on a report written by Prof Johan Martins.
The total real household expenditure of whites has decreased by an estimated 0,6% a year over the decade, and by 0,8 percent per person.
The corresponding figures for blacks were increases of 4,7% and 2,8% respectively.
An annual increase of 2,2% in total real household expenditure was recorded for Asians, and one of 0,3% for coloureds.
”African households are expected to have the largest share in total household expenditure of the four population groups in 2003 … Africans will be responsible for 46,2% and whites for 41,8% …
”The share of coloureds will be 7,5% and that of Asians 4,5%.”
Gauteng households are expected to be responsible for 36,2% of the total expenditure of R673,4-million, followed by KwaZulu-Natal with 15,7% and the Western Cape with 15,5%.
”These three provinces, where less than half of the total population of South Africa resides, will be responsible for more than two-thirds of the total household expenditure in South Africa in 2003.”
Both Gauteng and the Western Cape, the two provinces with the highest average household income, have a higher share of total household expenditure than of spending on food. The opposite is true for all other provinces.
”Poorer people … have far less income available to spend on luxury goods than their wealthier counterparts, generally residing in Gauteng and the Western Cape.”
It is expected that just more than a fifth of total household expenditure in the country this year will go towards food, 16,7% towards housing and electricity, and close on 10% each towards income tax and transport.
A comparison between 1993 and the estimates for 2003 shows higher spending in 14 of the 20 main expenditure groups. The highest increase was recorded in the category miscellaneous items — which includes gambling — followed by education.
In real terms, the highest increase in spending was on housing.
”A decrease in expenditure in real terms is evident with regard to cigarettes and tobacco, washing materials, plastic bags, insecticides and disinfectants, medical and dental services, holidays, insurance and funds, and domestic workers.”
The decrease in real spending on cigarettes and tobacco could be ascribed to the relatively high price increases (16,1% annually from 1993 to 2003), legislation restricting smoking to certain places and an advertising campaign on the risks of smoking, the statement said.
”The decrease in real expenditure on medical and dental services as well as domestic workers can also be ascribed to high price increases, which make these services unaffordable to some people.
”The cost of medical and dental services increased by 11,7% per annum and of domestic workers by 13,3% per annum as against an increase of 7,3% for all products and services over the 10-year period.” — Sapa