Private sector credit growth at 14-month low
The annual rate of growth in private sector credit has slowed for 14 consecutive months, according to January’s credit data from the Central Bank.
Overall private-sector credit increased by 16.8% year-on-year, down from 17% in December - a four-year low.
Mortgage credit was weak, increasing by 12.9% in annual terms, from 13.4% in December, while non-mortgage credit remained stable, increasing by 20.9%.
Adjusted mortgage credit - inclusive of outstanding securitised mortgages - grew by an average of €2bn a month in 2006, but slowed to an average of €1.4bn per month in 2007, a decrease of 32%.
The rate of increase in non-mortgage credit decelerated in the 12 months to December 2007.
Credit-card debt increased by 8.9% year-on-year in January, down from 9.3% in December, and considerably below the 17.9% increase recorded in January 2007.
