Friday, August 30, 2013

30/8/2013: How's that 'credit supply' to the economy promise going?

On foot of my analysis of the credit extended to Irish Private Sector Enterprises and to SMEs (see PSEs analysis here and SMEs analysis here), I was asked if I can pool together the two datasets to provide a summary of the 'Government performance table' on both.

Here it is. All changes are referenced to Q2 2011 in levels (Euro millions) and the colour codings are: bold green marks expansion on Q2 2011, bold red - contraction.

As you can see, only two sectors of the economy experienced an overall increase in credit levels: Manufacturing and Human Health & Social Work.

As I noted in the previous post: Truth be told, neither this nor any other Government can stop the deleveraging in the Irish private sector economy and this deleveraging will have more adverse impact on SMEs than on larger enterprises. But, truth be told, the Irish Government is not exactly keen on this truth and is insisting that it can 'unlock' credit flows... Two years in, we are still waiting...

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