Lending growth in all the wrong places
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Interest.co.nz’s David Hargreaves has posted the below stunning chart showing that Kiwis have leveraged big time into non-productive housing lending, whereas consumer lending has also rebounded hard. By contrast, lending to productive areas of the economy – businesses and agriculture – continues to fall:
Non-productive lending booms.
While the mortgage borrowing has been mounting and mounting, business lending (by both bank and non-bank lenders) is continuing to decline, falling at an annual rate of 5.3%, which is the largest annual decline since October 2010…
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.