Monetary Policy
MPC Press Release - July 2006
Monday, 31 July 2006 00:00
Domestic credit to private sector and public institutions by the deposit money banks (DMBs) increased by ¢1,954 billion (10 percent) to ¢20,713 billion in the first two months of the second quarter to May 2006 (the latest data available), compared with ¢825 billion (5 percent) recorded for the preceding quarter. Over the twelve-month period to May 2006, domestic credit by the DMBs increased by 42.0 percent compared with 34.1 percent recorded for the same period in 2005.

  • The private sector accounted for 93 percent of the credit growth during the second quarter, mainly to Commerce, which absorbed 51.9 percent, followed by Services (14.9 percent), Manufacturing (14.3 percent), Import trade (12.4percent), Agriculture (5.8 percent) and Construction (5.1 percent). In real terms, credit to the private sector increased by 21.0 percent in May 2006 (year—on-year) compared with 15.8 percent for the same period in 2005. Over the twelve-month period to May 2006, services accounted for 41.7 percent of the flow of credit to the private sector, compared with 10.6 percent over the same period in 2005.
  • The robust performance of services as shown by the direction and proportion of credit is also reflected in the trend in job vacancies advertised which indicated a total of 4517 jobs were advertised, an increase of 12.4 percent compared with 4019 vacancies during the same period last year. Most of the vacancies (84 percent) were in the services (education, wholesale and retail, transport and communication). The Industrial sector accounted for 15.1 percent, driven by Manufacturing (which accounted for 57 percent of vacancies in the sector). The preferred skills were Professionals and Technicians, followed by Sales and Other Service Workers.

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