Chart of the Day: Here’s solid proof Singapore’s domestic lending has grown increasingly alarming

The 3% contraction is the worst in a decade.

The slowdown in Singapore’s economy has dealt a huge blow for the city-state’s lenders, as the 2-3% contraction in June-July was the worst in 10 years, and it doesn’t look like it’s getting any better soon.

According to a report by Deutsche Bank, tighter lending towards businesses, particularly, manufacturing, general commerce, and financial institutions and more recently, towards construction could exacerbate the difficulties already faced by these sectors.

Additionally, consumer loans have likewise decelerated sharply from nearly a 20%yoy peak in 2011 towards 2-3%yoy in the first 7 months of 2016.

“[This weighs] on already weak consumer sentiment driven by an uptrend in unemployment rates and poor economic prospects,” the report added.