Low growth in household credit and mortgage balances in 2016

The value of outstanding credit balances in the South African household sector increased by a negligible 0,7% to R1 485,7 billion in 2016, down from growth of 4,5% in 2015. This was the result of growth in secured credit balances slowing down, whereas unsecured credit balances contracted compared with 2015. The value of outstanding household mortgage balances increased by 3,2% to R891,7 billion in the 12-month period up to end-December last year, compared with growth of 4,4% y/y at the end of 2015.

In view of trends in and prospects for the economy and the consumer sector, growth in household credit balances, including mortgage balances, is forecast to remain relatively low in 2017.

Read more here: Credit and Mortgage Advances (Dec 2016)