Economic Brief - Monetary Developments

Credit flat in April following two months of strong gains

• Money supply (M1) was up 1.9% (KD 134 million) in April while the broader measure of money (M2) contracted by –0.5% (–KD 140 million) following a strong seasonal jump in March. There was an outflow of money from time deposits into shorter term accounts.
• Growth in outstanding credit slowed in April. Loans rose a mere KD 2 million following stronger gains of KD 400 million the previous two months. Yet with a 3% year-on-year (y/y) increase, credit growth showed some signs of improvement compared to 2011.