Mexico | In April, credit fell 8.8% due to base effects and inertia in the recovery

In April 2021, the nominal annual contraction of current commercial banking credit to the non-financial private sector was -8.8% (-14.1% real). Despite the improvement in some indicators of economic activity, the different portfolios showed a lag in their recovery.

Key points

• Key points:
• Lower demand, along with a base effect due to the use of credit lines by companies, imply an annual nominal decline in business credit balances.
• The relative improvement in private consumption indicators mitigates the magnitude of the fall in consumer credit balances.
• The total housing portfolio maintains its growth, driven by the performance of the middle income-residential housing segment.
• NPL ratios of the different credit portfolios begin to increase.

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