Loan growth slowly recovering

As the regional monetary easing cycle progresses, there has been a visible uptick in household lending within the banking sector. In nominal terms, loan growth reached its bottom in several CEE countries at the end of 2023, with Czechia and Slovakia registering the most sluggish nominal growth rates still in 2024. Poland's loan growth trajectory has reached a minimum in 2022, with a sluggish recovery. Croatia is a unique case, reporting a consistent rise in nominal loan growth throughout the observed period. When accounting for inflation, all the countries experienced a contraction in loan growth at the end of 2022. Poland witnessed the most pronounced downturn in real terms, with a reduction of 24% y/y. As of late, there has been a gradual shift towards positive growth also in real terms, such as in Croatia, Czechia, Hungary, Slovenia, and Slovakia. Nonetheless, it is important to note that in certain cases, this positive trend may be attributed primarily to the effects of a lower base.