Guest Contributor | Jan 17, 2023 | 0
Current household, corporate debt at about 80% of 2021’s real GDP – Expert
Credit extended to the private sector in Namibia grew by 3.8% year/year in April, compared to 2.1% year/year in March, rising above its 6-month moving average of 2.2%, an expert said this week.
This is the largest monthly annual increase recorded since April 2020, which recorded 3.7% y/y, the investment research firm, Simonis Storm Securities (SSS), Economist Theo Klein said in a Private Sector Credit Extension report for April 2022.
“Net household debt increased by 2.2% y/y in April and remains on a declining trend since the start of 2022. Net corporate debt increased by 5.9% y/y in April, compared to 1.9% y/y in March 2022,” he said.
According to Klein, this was the highest monthly annual increase since June 2021.
“The rise in corporate credit was mainly from an increase in asset-backed credit facilities and other loans and advances by businesses in the commercial rental property, agricultural, transport and health service provider sectors according to Bank of Namibia (BoN),” he explained.
Meanwhile, current household and corporate debt is about 80% of 2021’s real GDP, which is fairly high compared to emerging market peers, he concluded.