Slight increase in household credit balances growth in 2017

The South African household sector’s value of outstanding credit balances increased by 3.8% to R1 542.8 billion in 2017, up from a low of 0.7% in 2016. The subdued 2016 growth rate was somewhat impacted by African Bank statistics of unsecured credit. Secured and unsecured credit balances’ growth improved last year from 2016. 

South Africa’s economy has been forecasted to grow by 1.4% this year, with headline consumer price inflation projected at approximately 5% and interest rates are expected to show little, if any, change this year. Growth in household credit balances (including mortgage balances) are forecasted at around the 3.5% level in 2018.

Read more here: Absa – credit and mortgage advances (Dec 2017)