Credit to private sector on the rise in Namibia
Credit to the private sector increased by 1,78 per cent in October in Namibia, reaching a total N$66,8 billion (€4.6 billion) in outstanding credit, according to a new report from Namibian stockbroking firm IJG Securities.Credit to the private sector increased by 1,78 per cent in October in Namibia, reaching a total N$66,8 billion (€4.6 billion) in outstanding credit, according to a new report from Namibian stockbroking firm IJG Securities.
On an annual basis, Private Sector Credit Extension (PSCE) growth accelerated by 0,1 percentage points, to 16,4 per cent.
" The continued growth in PSCE is indicative of the strength of the Namibian economy even amid global divergence and South African weakness," the report said.
A net total of N$9,42 billon worth of credit was extended over the last year, the highest level of net issuance seen over a 12 month period. Of this amount, approximately N$4,63 billion was issued to businesses, while N$4,69 billion was taken up by individuals.
Credit extension to households also expanded by 1,1 per cent on a monthly basis and 13,2 per cent on an annual basis in October.
"The growth in credit extension to households can be largely ascribed to prolonged and historically low interest rates in Namibia," IJG said.
The report concludes that further strong credit growth is expected, as real income growth should remain elevated amid expansive economic conditions in Namibia.