Against this background, we expect investment growth in the euro area to provide ongoing support to economic activity, as capacity utilisation remains solid and profitability in the non-financial corporate sector has been sustained. Moreover, employment and labour force participation have increased significantly, and unemployment rates have fallen to levels not seen for 25 years.
There are some structural factors that could drive credit growth, namely, the emergence of consumer loans, the shrinking of spreads on alternate assets and a higher risk appetite because of stronger foreclosure norms and statutory support for enforcement of creditor rights.