Private-Sector Economic Developments in the Euro Area in 2016

14 Pages Posted: 10 Oct 2017

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Date Written: July 25, 2017


This article describes the economic situation of the non-financial private sector in the euro area during 2016, on the basis of sectoral accounts. In the case of households, employment creation and low inflation provided for an increase in purchasing power which, along with the rise in wealth, was reflected in the strength of consumption, against a background in which the increase in nominal wages continue to be modest. The pace of economic recovery enabled firms to improve their profits and investment, although the investment drive was still moderate, while the sector continued to evidence a net lending capacity. The greater dynamism of lending both for households and firms was compatible with further increases in the ongoing correction of indebtedness, though such increases were uneven from one country to another. In the case of large corporations, the shift in the liabilities mix towards financing based on fixed-income securities continued, driven in 2016 by the Eurosystem’s monetary policy measures.

Suggested Citation

Del-Rio, Ana and Cuenca, Jose Antonio, Private-Sector Economic Developments in the Euro Area in 2016 (July 25, 2017). Banco de Espana Article 17/17. Available at SSRN:

Ana Del-Rio

Banco de España ( email )

Madrid 28014

Jose Antonio Cuenca (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014

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