Bank lending to non-financial corporations grew 1% year on year in the first quarter, compared with a 2% decrease the year before. In France, year-on-year growth in lending to businesses came to around 4% in March, compared with just 1% a year earlier. In light of these improvements, euro area growth projections and inflation expectations have both been revised upward.
The macroeconomic projections produced by ECB staff in March 2015 predicted euro area growth of 1.5% in 2015, 1.9% in 2016 and 2.1% in 2017. Growth will be supported by rising external demand, lower oil prices and the accommodative monetary policy stance. The first-quarter euro area growth figures released on 13 May confirm this trend.