All four of these characteristics are quite heterogeneous across countries within the euro area either structurally or conjuncturally (in the recent past). Figures 6 and 7 portray the composition of households’ portfolios in the area according to the HFCS released in 2013. Figure 8 shows real house price indices in the same countries over the last decade. Debt levels vary significantly.
As these developments show, a sharp drop in exports since last autumn and the subsequent decrease in production have started to adversely affect domestic private demand with a lag. At present, a recovery in exports and production and the weakness in business fixed investment and private consumption seem to be in a tug of war. B.