Analysts at ANZ point out that New Zealand’s private sector credit (PSC) growth moderated to 1.1% q/q in Q4 from 1.4% in Q3, while annual growth of 5.1% y/y remains broadly stable.
Key Quotes
“We estimate that the outstanding stock of credit remains elevated at 154.1% of GDP.”
“Businesses are facing a mixed bag, creating a tug of war for credit growth. As always, it is difficult to disentangle credit for investment versus working capital, but business credit growth did accelerate in December, up 0.9% m/m to be up 0.9% q/q. That said, annual growth of 4.5% remains on the softer side compared to growth around 7% recorded year ago.”
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