{"id":30976,"date":"2022-03-03T11:03:11","date_gmt":"2022-03-03T09:03:11","guid":{"rendered":"https:\/\/ijg.net\/research\/?p=30976"},"modified":"2022-03-03T11:03:12","modified_gmt":"2022-03-03T09:03:12","slug":"psce-january-2022","status":"publish","type":"post","link":"https:\/\/ijg.net\/research\/psce-january-2022\/","title":{"rendered":"PSCE \u2013 January 2022"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Overall<\/strong><\/p>\n\n\n\n

Private sector credit (PSCE) increased by N$4.22 billion or 4.0% m\/m in January, the largest month-on-month percentage increased since 2003, bringing the cumulative credit outstanding to N$110.6 billion. On a year-on-year basis, private sector credit grew by 4.8% y\/y in January, substantially quicker than the 1.0% growth recorded in December. Cumulative credit extended to the private sector over the last 12 months amounted to N$5.04 billion. N$1.9 billion worth of credit has been extended to individuals on a 12-month cumulative basis, while N$917.9 million was extended to corporates. Claims on non-resident private sectors increased by an immense N$2.4 billion during the month, which drove most of the increase in the overall PSCE figure. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Credit\nExtension to Individuals<\/strong><\/p>\n\n\n\n

Credit\nextended to individuals increased by 0.4% m\/m and 3.2% y\/y in January. Most of\nthe increase was driven by an increase in mortgage loans of 0.3% m\/m and 3.4%\ny\/y. Overdraft facilities to individuals also displayed relatively strong\ngrowth of 3.7% m\/m and 2.0% y\/y during the month. Other loans and advances\n(consisting of credit card debt, personal- and term loans) rose by 0.4% m\/m and\n4.0% y\/y. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Credit\nExtension to Corporates<\/strong><\/p>\n\n\n\n

Credit extended to\ncorporates grew by 2.1% y\/y in January, following a contraction of 0.1% y\/y in\nDecember. On a month-on-month basis credit extension to corporates rose 3.5% in\nJanuary. The month-on-month growth was primarily driven by increased uptake in\noverdraft facilities which registered growth of 16.1% m\/m, but fell 2.7% y\/y.\nDemand for instalment credit by corporates remain low, falling by 0.4% m\/m, but\nincreasing 3.6% y\/y. Mortgage loans to corporates fell by 1.6% m\/m, but rose\n1.4% y\/y.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Banking\nSector Liquidity <\/strong><\/p>\n\n\n\n

The overall liquidity position\nof the commercial banks deteriorated significantly during January, falling by\nN$2.00 billion to an average of N$2.85 billion. The BoN ascribed the decline to\ncorporate tax payments at the start of 2022. The decline meant that the repo\nbalance increased from zero at the end of December to N$1.53 billion at the end\nof the month. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Reserves and Money Supply<\/strong><\/p>\n\n\n\n

Broad\nmoney supply (M2) rose by N$2.03 billion or 1.6% y\/y to N$128.4 billion,\naccording to the BoN\u2019s latest monetary statistics. Foreign reserve balances\nfell by 1.3% m\/m or N$576.8 million to a total of N$43.3 billion. The contraction\nwas contributed to increased government payments, increased commercial bank\npurchases of foreign currencies as well as exchange rate revaluations during\nthe period. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Outlook<\/strong><\/p>\n\n\n\n

PSCE started the year off strong with a 4.0% m\/m increase. It should\nhowever be noted that a significant portion of the increase has been driven by\nan increased uptake of overdraft facilities, particularly by corporates.\nOverdraft facilities are typically used to address short-term funding\nrequirements, and not to fund long-term capital investment projects. The N$2.4\nbillion increase in claims on non-resident private sectors is however encouraging.<\/p>\n\n\n\n

As expected, the BoN decided to raise rates by 25 basis points at\nits February MPC meeting. Inflationary pressure is expected to pick up in the\ncoming months due to the rising oil price and the second-round effects. We\ncontinue to forecast both the South African and Namibian central banks to\nincrease rates between 75- and 125-basis points during the year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Overall Private sector credit (PSCE) increased by N$4.22 billion or 4.0% m\/m in January, the largest month-on-month percentage increased since 2003, bringing the cumulative credit outstanding to N$110.6 billion. On a year-on-year basis, private sector credit grew by 4.8% y\/y in January, substantially quicker than the 1.0% growth recorded in \u2026 Continue reading → <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,22],"tags":[],"class_list":["post-30976","post","type-post","status-publish","format-standard","hentry","category-economicresearch","category-psce"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/30976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/comments?post=30976"}],"version-history":[{"count":1,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/30976\/revisions"}],"predecessor-version":[{"id":30983,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/30976\/revisions\/30983"}],"wp:attachment":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/media?parent=30976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/categories?post=30976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/tags?post=30976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}