Credit growth since 2010 has been rapid but has been below typical metrics of credit booms. In 2014, credit growth came close to exceeding some of these metrics but prompt BSP action brought it back down (Box 1). Going forward, credit is expected to increase by about
2 percentage points of GDP per year, a rate of financial deepening that appears to be sustainable based on cross-country studies. However, its sustainability will need to be assessed carefully on an ongoing basis in view of concentration and other risks identified below. Credit growth to real estate and construction has moderated. As noted above, projected credit growth is consistent with investment and economic growth.