A bullish signal for the growth outlook

It seems like the prevailing macro mood right now is one of pessimism.

But here’s an interesting datapoint..

Globally banks are reporting a resurgence in loan demand.

This follows an initial long recovery from the 2022/23 shadow recession and then again rebounding from the tariff-volatility shock earlier this year.

It also lines-up neatly with what I’ve been yabbering on about with the “Global Growth Reacceleration“ theme [as explained in the 2026 Outlook Webinar].

While it is possible to see loan demand increase when firms are facing cash and liquidity pressures (e.g. in early 2020), the much more common driver is increased activity, capacity issues (strong demand), and optimism on the future.

Typically businesses will take out loans to fund long-term expansion-oriented programs e.g. M&A, real estate/premises purchases, investment in plant & equipment, and other growth initiatives.

Not only will they need to prove to the bank their current and anticipated ability to service the loan, but also clearly articulate the anticipated uplift in revenues and cashflow from the investment (and timing thereof).

In other words: it’s a bullish macro sign to see corporate loan demand increasing.

And it’s a contrasting positive sign amongst all the pessimism and negativity that seems to be dominating the discussions lately + definitely interesting as a point of confirmation for a prospective uptick in growth heading into 2026.

Key point: Loan demand is on the rise: a bullish signal for the growth outlook.

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A bullish signal for the growth outlook

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.

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