{"id":34038,"date":"2022-11-30T19:32:00","date_gmt":"2022-11-30T17:32:00","guid":{"rendered":"https:\/\/ijg.net\/research\/?p=34038"},"modified":"2023-01-06T14:35:43","modified_gmt":"2023-01-06T12:35:43","slug":"psce-october-2022","status":"publish","type":"post","link":"https:\/\/ijg.net\/research\/psce-october-2022\/","title":{"rendered":"PSCE \u2013 October 2022"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

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

Private sector credit\n(PSCE) rose by N$104.5 million or 0.1% m\/m in October, bringing the cumulative\ncredit outstanding to N$109.6 billion after normalising for interbank swaps accounted\nin non-resident private sector claims. Year-on-year, private sector credit grew\nby 3.0% in October, marginally slower than the 3.6% y\/y growth recorded in September.\nOn a 12-month cumulative basis, N$3.21 billion worth of credit was extended to\nthe private sector. Of the cumulative issuance, corporates borrowed N$1.37\nbillion and individuals took up N$2.29 billion.<\/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 0.8% m\/m and 3.7% y\/y in October. Annual growth\nin all of the credit lines to individuals picked up in October. Mortgage loans\nto individuals posted growth of 0.4% m\/m and 2.6% y\/y. Other loans and advances\n(consisting of credit card, personal, and term loans) grew by 3.0% m\/m and 10.3%\ny\/y, and instalment credit rose by 0.9% m\/m and 2.6% y\/y. Overdraft facilities to\nindividuals contracted by 1.3% m\/m and 0.3% 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 corporates contracted by 0.9% m\/m but rose by 3.1% y\/y in October. The Bank of Namibia (BoN) ascribes the decline to lower credit demand and deleveraging by corporates in the construction and services sectors. All of the credit lines to corporates, bar other loans and advances, saw a deceleration in annual growth in October. Mortgage loans grew by 0.1% m\/m but declined 3.3% y\/y. Installment credit posted growth of 1.7% m\/m and 14.6% y\/y. Overdrafts declined by 2.3% m\/m and 6.2% y\/y. Other loans and advances to corporates contracted by 1.5% m\/m but rose 13.2% 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 improved in\nOctober, rising by N$616.7 million to an average of N$3.33 billion before\nending the month at N$3.4 billion. The BoN attributed the improved liquidity position to inflows\nfrom government bonds, specifically the redemption of GI22 and interest\npayments on other bonds.<\/p>\n\n\n\n

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

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

Broad\nmoney supply (M2) contracted by N$1.85 billion or 1.8% y\/y to N$126.4 billion. According\nto the BoN, the contraction came on the back of a decline in net foreign assets\nof the depository corporations as a result of rising government foreign payments,\ncombined with commercial bank outflows for import payments and lower growth in\ndomestic claims. Foreign reserve balances fell by 6.7% m\/m or N$3.20 billion to\nN$44.8 billion in October. The BoN ascribed the decline largely to government\npayments and commercial bank outflows during the period under review.<\/p>\n\n\n\n

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

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

Annual PSCE growth slowed for the second consecutive month in October. The BoN once again attributed the lower growth in PSCE to lower credit demand and repayments by the corporate sector, specifically corporates operating in the construction and services sectors. <\/p>\n\n\n\n

The BoN\u2019s MPC hiked\ninterest rates by 50 basis points in November, bringing the prime lending rate\nto 10.5% and just 25bps below the highest lending rate of the past decade. The rapidly\nrising borrowing costs, coupled with the muted economic activity means that\nPSCE growth will possibly remain subdued in the short-term. On the supply side,\nwe see little change from the current status quo over the near term. <\/p>\n","protected":false},"excerpt":{"rendered":"

Overall Private sector credit (PSCE) rose by N$104.5 million or 0.1% m\/m in October, bringing the cumulative credit outstanding to N$109.6 billion after normalising for interbank swaps accounted in non-resident private sector claims. Year-on-year, private sector credit grew by 3.0% in October, marginally slower than the 3.6% 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-34038","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\/34038","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=34038"}],"version-history":[{"count":2,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/34038\/revisions"}],"predecessor-version":[{"id":34424,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/34038\/revisions\/34424"}],"wp:attachment":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/media?parent=34038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/categories?post=34038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/tags?post=34038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}