News from 2024-10-16 / KfW Research

KfW Credit Market Outlook Q3 2024

Weak investment activity is limiting the recovery of lending

The recovery of lending has stalled. In the second quarter of 2024, credit commitments calculated by KfW Research fell by 2% on the same quarter of last year. The weak development of business investment hampered the recovery of new lending.

The economic downturn following the upturn at the start of the year is weighing on lending activity. As a result, a substantial trend reversal in the credit market is slipping further into the future. The reluctance to invest will continue to limit the volume of new bank loans in the second half of the year due to the difficult economic conditions. The ongoing easing of monetary policy provides some relief in terms of financing costs. KfW Research therefore anticipates at least slightly positive growth in the lending business in the third and fourth quarters.

KfW Credit Market Outlook Q3 2024

Press release

Contact

KfW Research

KfW Group

Palmengartenstrasse 5-9

60325 Frankfurt

Germany