Ongoing subdued household credit and mortgage balances growth

The value of outstanding credit balances in the South African household sector increased by 2,8% year-on-year (y/y) to a level of R1 508,2 billion in the first five months of 2017, which was the combined result of continued low growth of 2,3% y/y in secured credit balances and growth of 4,6% y/y in unsecured credit balances over this period.

The South African economy is forecast to grow at a much subdued rate of 0,6% in 2017, which is below the potential real growth rate of 1,4%, as calculated by the Reserve Bank. In view of projected low economic growth, tough labour market conditions, pressure on household finances and low consumer confidence, growth in household credit balances, including mortgage balances, is to remain largely subdued up to year-end.

Read more here: Credit and Mortgage Advances (May 2017)