Forecast: New Business Lending for SMEs in Australia

New business lending for SMEs in Australia has shown significant fluctuations over the past several years. From 2013 to 2018, growth was sporadic, with values peaking and falling erratically. A notable spike occurred in 2019 with a 141.5% year-on-year increase, followed by a dramatic drop in 2020. Recovery was seen in 2021 with growth of 30.19%, but 2022 saw another dip. In 2023, lending stood at 92.39 billion AUD, marking a 14.23% increase year-on-year. Over the last two years, the market has seen a positive trend, with a CAGR of 3.79%.

Future trends from 2024 to 2028 indicate a steadier increase in lending, with a forecasted 5-year CAGR of 0.94%. The market is expected to grow by 4.79% by 2028, reaching 98.02 billion AUD. Key factors to watch include economic stability, regulatory changes, and the introduction of financial technologies that could either drive or restrain lending growth for SMEs in Australia.