Credit growth, a solid base for a European recovery

The fate of the European economy in 2019 will be played out on the resilience of domestic demand. So far, despite a continued rise in external risks and a long succession of negative one-offs, domestic demand in the Eurozone has not faltered, although overall sentiment, both from household and business, has weakened. True, at the same time, the labour market was stronger, the policy mix favourable and credit conditions generous. Lending standards have tightened somewhat in early ...