KfW Credit Market Outlook Q2 2024

New lending to businesses has continued to decline. In the first quarter of 2024, the credit commitments calculated by KfW Research fell by 3.9%on the previous year. In both preceding quarters, new lending had dropped at double-digit rates. The recovery in new lending business is being hampered by the weak development of business investment.

New lending is likely to grow moderately in the second half of the year when the economic recovery firms up and the interest rate turnaround is more strongly reflected in financing conditions.

Economic planning certainty influences businesses' financing requirements through their investment decisions. Accordingly, the outcomes of upcoming elections and the development of trade conflicts constitute an uncertainty for the revival of the credit market.

KfW Credit Market Outlook Q2 2024(PDF, 329 KB, accessible)