Domestic credit to private sector (% of GDP)

The measure of financial resources allocated to the private sector encompasses various forms of credit, including loans, trade credits, and the acquisition of non-equity securities, all of which generate a repayment obligation. This indicator serves as a crucial barometer for assessing the economic health and financial stability of a country, as it reflects the extent to which businesses and households have access to funding for investment and consumption. A higher percentage signals increased confidence among lenders and can stimulate economic growth, while a lower figure may indicate barriers to financing or economic uncertainty. Additionally, in certain nations, this metric may also incorporate credit extended to state-owned enterprises, adding further complexity to its interpretation and impact on economic dynamics. Source: