Private sector credit extension remains subdued

Private sector credit extension grew by 2.2% year-on-year in August 2023, down from 2.6% in July. Credit to the private sector has been below 5% since January 2021, with 2023 not surpassing 4%. Key sectors like transport, fishing, services, and wholesale/retail have been reducing their credit usage. Simonis and Storm Research Assistant, Angelique Bock explains.