Household sector indebtedness has risen in Southern Caucasus and Central Asia, with pronounced growth (mostly well over 20% per year) in consumer lending over 2022-2024.Owing to central banks' efforts, growth slowed in 2024 but will likely remain strong in 2025 and beyond because of premium lending margins for this product and consumers’ higher propensity to spend, with a general decline in household savings rates across the region, in some cases into negative territory.