With the euro protecting the Single Market, trade growth has increased, with intra-EU exports rising from 13% of EU GDP in 1992 to 20% today. Intra-euro area trade has risen both in absolute terms and as a share of total trade with advanced economies12, even as emerging market economies have entered the global market.
Our restrictions on high loan-to-value ratio (LVR) lending (one measure of high risk lending) are one tool we have that can moderate financial stability risks even while the stock of household debt is rising.