Domestic credit to private sector (% of GDP)

The measure of financial resources extended to the private sector encompasses various forms of credit facilitated by financial institutions, including loans, the acquisition of securities not representing equity, and trade credits alongside other receivables that necessitate repayment. This metric provides insights into the economic health and lending behavior within a country, reflecting how effectively financial corporations, such as banks and specialized lenders, are channeling funds to private entities. Notably, it may also capture credit extended to state-owned enterprises in certain jurisdictions, thereby providing a complete picture of the credit landscape. Analyzing this indicator helps gauge private sector access to finance, impacting investment decisions, economic growth, and overall financial stability. Source: