Demand for credit climbs in South Africa
Residents in South Africa have increased their demand for credit, new data from the South African Reserve Bank has revealed.According to figures released by the Bank today (June 30th), consumer requests for credit were up 0.8 per cent year-on-year last month. The increase was greater than had been expected, with a poll conducted by Reuters suggesting the rise of applications in the private sector would jump by 0.63 per cent.
In addition, the statistics showed a 1.4 per cent rise in total loans and advances, while total domestic credit extension was up 1.02 per cent. Credit demand has been low in the country over the past 12 months, the news source reports, with job losses and the growing inability to repay debts causing applications to dip.
Speaking to the agency, Head of Research at Absa Capital Jeff Gable said the year-on-year growth is "helpful" for the economic recovery. "It's not growing very strongly but you go slowly before you go a little bit better," he added.