Claims on private sector (annual growth as % of broad money)

This indicator reflects the annual growth rate of gross credit extended by the financial system to various entities, encompassing individuals, enterprises, and nonfinancial public institutions not accounted for in net domestic credit. By assessing this growth as a percentage of broad money, it provides a clearer picture of the financial sector's engagement with the private sector and its role in supporting economic activities. A rising rate may indicate increased financial intermediation and a buoyant economic outlook, while a decline could signal tightening credit conditions or weakening demand. Understanding these dynamics helps gauge the health of the private sector and the overall financial system's responsiveness to economic needs. Source: