Wilder’s news on Euro area credit markets

Rebecca takes note of credit growth in many of the Euro countries and notes indications of continued deteriorating macro economies in Newsneconomics:

Today the ECB released details on monetary aggregates for the euro area. According to the statement on the asset side of the consolidated balance sheet of the euro area monetary financial institutions (MFIs):

the annual growth rate of total credit granted to euro area residents decreased to 2.6% in June 2011, from 3.1% in the previous month. The annual growth rate of credit extended to general government decreased to 4.6% in June, from 5.7% in May, while the annual growth rate of credit extended to the private sector decreased to 2.2% in June, from 2.5% in the previous month

Weak credit growth is entirely consistent with the deteriorating pace of the macroeconomy (see Edward Hugh’s post here). How does 2.2% annual credit growth compare to history?

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