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Bank lending in the Eurozone is set to decelerate after reaching a 14-year peak in 2022 at 5%. Projections indicate a decline to 2.1% in 2023 and 1.7% in 2024, mainly due to reduced loan demand. The Eurozone, officially in a recession in Q1 2023, faces high inflation and soaring interest rates. This scenario is likely to challenge lending volumes over the next two years. Germany, the largest Eurozone economy, is forecasted to experience the sharpest slowdown, dropping from 6.9% growth in 2022 to 2.8% in 2023, driven by weak GDP growth and rising interest rates affecting the housing market.
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