Xinhua, Mexico City :
Credit in Mexico issued by banks to the private sector increased 6 percent in August at the year-on-year rate, spurred in large part by loans to businesses, the Central Bank of Mexico (Banxico) said Friday.
In its monthly report on financial and monetary activity, Banxico said that credit to companies and business people with entrepreneurial activity grew 10.1 percent in August compared to the same period in 2017.
At the same time, home loans increased 3.8 percent in August and consumer credit grew 1.3 percent, according to the report.
Payroll and credit card transactions grew at an annual 0.5 and 0.7 percent respectively in August, while personal loans contracted 0.4 percent in the same time period.
In a report to its clients, Financial Group Banorte said credit will continue to thrive in the coming months, even above the pace of economic activity.
“We believe that bank credit will continue to be driven by the creation of formal employment, lower inflation compared to 2017,” the private institution said.
Mexico’s economy, the second largest in Latin America following Brazil, could grow 2 to 2.6 percent this year, according to estimates from Banxico. In 2017, Mexico’s Gross Domestic Product grew 2 percent.
Credit in Mexico issued by banks to the private sector increased 6 percent in August at the year-on-year rate, spurred in large part by loans to businesses, the Central Bank of Mexico (Banxico) said Friday.
In its monthly report on financial and monetary activity, Banxico said that credit to companies and business people with entrepreneurial activity grew 10.1 percent in August compared to the same period in 2017.
At the same time, home loans increased 3.8 percent in August and consumer credit grew 1.3 percent, according to the report.
Payroll and credit card transactions grew at an annual 0.5 and 0.7 percent respectively in August, while personal loans contracted 0.4 percent in the same time period.
In a report to its clients, Financial Group Banorte said credit will continue to thrive in the coming months, even above the pace of economic activity.
“We believe that bank credit will continue to be driven by the creation of formal employment, lower inflation compared to 2017,” the private institution said.
Mexico’s economy, the second largest in Latin America following Brazil, could grow 2 to 2.6 percent this year, according to estimates from Banxico. In 2017, Mexico’s Gross Domestic Product grew 2 percent.
