Loans to households in the Euro Area rose 3.2 percent from a year earlier to EUR 6.04 trillion in January 2019, the same pace as in the previous month and below market expectations of a 3.4 percent increase. Also, credit to non-financial corporations went down to 3.3 percent to EUR 4.49 trillion from 3.9 percent in December. Private sector credit growth including households and non-financial corporations declined to 3.0 percent in January, compared to 3.4 percent in the prior month. Loan Growth in the Euro Area averaged 3.64 percent from 2004 until 2019, reaching an all time high of 9.90 percent in March of 2006 and a record low of -0.40 percent in November of 2013.
Loan Growth in Euro Area is expected to be 3.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Loan Growth in Euro Area to stand at 3.40 in 12 months time. In the long-term, the Euro Area Household Credit Growth is projected to trend around 3.00 percent in 2020, according to our econometric models.