Mexico | The recovery of bank credit in July has not yet resulted in annual growth rates

Summary

For the third consecutive month, the contraction in the annual growth rate of current portfolio balances to the non-financial private sector has been milder, which reaffirms that total bank credit is on the way to a recovery, although its magnitude differs across portfolios.

Key points

• Key points:
• For the third consecutive month, the contraction in the annual growth rate of the current portfolio balance has been reduced, which reaffirms that total bank credit is on the way to a recovery, although its magnitude differs between portfolios.
• The demand for business financing has not yet recovered and performance exhibits significant heterogeneity across sectors.
• The improvement in private consumption indicators has not yet been enough to trigger further growth in the consumer portfolio.
• The sustained growth of the housing portfolio is partly explained by an environment of historically low interest rates, which have remained below double-digit levels since May 2020.

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