{"id":32227,"date":"2022-06-29T17:02:46","date_gmt":"2022-06-29T15:02:46","guid":{"rendered":"https:\/\/ijg.net\/research\/?p=32227"},"modified":"2022-06-29T17:02:47","modified_gmt":"2022-06-29T15:02:47","slug":"psce-may-2022","status":"publish","type":"post","link":"https:\/\/ijg.net\/research\/psce-may-2022\/","title":{"rendered":"PSCE \u2013 May 2022"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

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

Private sector credit (PSCE) rose by N$351.3 million or 0.3% m\/m in May, the slowest month-on-month increase so far in 2022, bringing the cumulative credit outstanding to N$116.6 billion. On a year-on-year basis, private sector credit grew by 11.0% y\/y in May, compared to the 10.5% y\/y growth recorded in April. Normalising for the large increases in claims on non-resident private sectors recorded between January and March, sees PSCE growth at 3.9% y\/y in May. On a 12-month cumulative basis N$11.6 billion worth of credit was extended to the private sector. Of this cumulative issuance, individuals took up N$1.48 billion, corporates increased their borrowings by N$3.21 billion and the non-resident private sectors took up N$6.86 billion. <\/p>\n\n\n\n

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

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

Credit\nextended to individuals increased by 0.3% m\/m and 2.4% y\/y in May. Mortgage\nloans to individuals posted growth of 0.2% m\/m and 2.4% y\/y. Overdraft\nfacilities to individuals grew by 0.4% m\/m but contracted by 1.7% y\/y. Other\nloans and advances (consisting of credit card debt, personal- and term loans)\nrose by 0.8% m\/m and 5.2% 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 7.4% y\/y in May, following the 5.9% y\/y increase recorded in\nApril. On a month-on-month basis, credit extension to corporates rose 0.2% m\/m in\nMay. The growth was primarily driven by an increase in \u2018other loans and\nadvances\u2019 of 4.5% m\/m and 18.2% y\/y. Instalment credit by corporates rose by 1.4%\nm\/m and 16.6% y\/y, albeit from a low base. Mortgage loans contracted by 1.2%\nm\/m but rose 3.6% y\/y, while overdrafts fell by 4.9% m\/m and 5.2% 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 of the commercial banks rose\nsignificantly in May, rising by N$778.3 million to an average of N$3.79\nbillion. The BoN partly ascribed the increase to an increase in diamond sales\nproceeds during the month. The repo balance fell to N$438.9 million at the end\nof the month, after ending April at N$1.97 billion.<\/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$5.8 billion or 4.8% y\/y to N$127.6 billion,\naccording to the BoN\u2019s latest monetary statistics. Foreign reserve balances rose\nby 2.0% m\/m or N$879.2 million to a total of N$43.9 billion. The rise was attributed\nto revaluation gains in the form of foreign currency investments during the\nperiod. <\/p>\n\n\n\n

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

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

Although May\u2019s PSCE\ngrowth figure was the slowest on a month-on-month basis so far this year, it was\nthe fifth consecutive month Namibian PSCE grew. As noted earlier in this\nreport, normalising for the large increases in claims on\nnon-resident private sectors recorded between January and March, sees PSCE\ngrowth at 3.9% y\/y in May. Overall\ncredit demand, and the willingness of commercial banks to extend credit thus\nremain low. Corporate credit growth continues to be driven by up the uptake of\nshort-term credit, whereas the growth in credit to individuals was largely\ndriven by the uptake of mortgage loans over the last 12 months. <\/p>\n","protected":false},"excerpt":{"rendered":"

Overall Private sector credit (PSCE) rose by N$351.3 million or 0.3% m\/m in May, the slowest month-on-month increase so far in 2022, bringing the cumulative credit outstanding to N$116.6 billion. On a year-on-year basis, private sector credit grew by 11.0% y\/y in May, compared to the 10.5% y\/y growth recorded \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-32227","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\/32227","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=32227"}],"version-history":[{"count":1,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/32227\/revisions"}],"predecessor-version":[{"id":32235,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/32227\/revisions\/32235"}],"wp:attachment":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/media?parent=32227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/categories?post=32227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/tags?post=32227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}