Loans to households in the Euro Area increased by 3.2 percent from a year ago to EUR 5.99 trillion in October of 2018, the same as an upwardly revised 3.2 percent rise in September and in line with market expectations. Also, credit to non-financial corporations went up 3.9 percent to EUR 4.46 trillion, after a 4.3 percent increase in September. Private sector credit growth including households and non-financial corporations rose 3.3 percent in October, slightly below 3.4 percent in the previous month. Loan Growth in the Euro Area averaged 3.65 percent from 2004 until 2018, 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 3.40 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 3.20 in 12 months time. In the long-term, the Euro Area Household Credit Growth is projected to trend around 2.80 percent in 2020, according to our econometric models.