​The nominal value of financial flows in the South African economy declined in 2016, in step with weak gross domestic product (GDP) and income growth, tight credit conditions and subdued business and consumer confidence. Inflows from the foreign sector also decreased in 2016. A decline in equity inflows reflected the effect of generally accommodative global monetary policy in advanced economies whereas the concomitant search for yield supported inflows in the bond market. These inflows were sufficient to offset the overall domestic saving investment gap. This note presents a brief overview of trends in the 2016 flow of funds, captured through real and financial transactions amongst all institutional sectors. The quarterly flow of funds accounts are appended to this note and the annual summary appears on pages S–46 to S–47 of this issue of the Quarterly Bulletin.