The Unassuming Economist

From the IMF’s latest report on Namibia:

“Excessive loan concentration in the housing market could be a further factor constraining financial sector contribution to growth. More than 90 percent of household debt at end-2021 was in housing mortgages, representing half of all banking sector loans to the private sector. The concentration of credit provision in less productive sectors could make the growth contribution of the financial sector asymmetric, as observed in the data: limited potential for a positive contribution, but with the risk of a negative contribution during economic contractions. This risk is significant for households exposed to rising interest rates and declining real wages.”