“The impulse of bank lending to the private sector continued to recover in the Eurozone in Q4 2024 (1.5 after between 1.1 and 1.2 since September 2024). It was back in positive territory since August (0.8), and in December 2024 it reached its highest level since November 2022 (2.7). The ECB bank lending survey in the Eurozone confirms the recovery in the demand for loans in Q4 2024. However, politic. al uncertainties have resulted in a tightening of credit standards for lending to companies in France and Germany. The survey also offers an outlook for Q1 2025. Investment in housing could benefit from the continued recovery in home loans (subject to changes in the cost of loans in some countries). By contrast, attention should still be paid to corporate investment: this barely contributed to the increase in demand for loans in Q4 2024, while this demand, still increasing up to the end of 2024, is expected to be stable in Q1 2025, according to those banks surveyed.”
Morten W. Langer
