Today, we will show you a graph:
This graph shows the year-on-year credit growth in Australia from January 2000 to March 2009. As you can see, after credit growth peaked in January 2008 at 17.28%, it declined to 5.17% in March 2009. As you can see from the graph, the decline is pretty steep.
In a highly indebted nation like Australia, credit growth is what keeps the economy ticking. Such a rapid deceleration in credit growth will have a serious impact on the economy.
Tags: credit growth
