Loans to households in the Euro Area rose 3.3 percent from a year earlier to EUR 6.10 trillion in May 2019, the same pace as in April and below market expectations of 3.4 percent. Also, credit to non-financial corporations went up 3.9 percent to EUR 4.55 trillion, also unchanged from the previous month. Private sector credit growth including households and non-financial corporations eased to 3.3 percent in May from 3.4 percent in the prior month. Loan Growth in the Euro Area averaged 3.63 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.