Monetary Sector credit to private sector (% GDP)

Domestic credit allocated to the private sector encompasses various financial assets that institutions extend to businesses and individuals, including loans, non-equity investments, and trade credits, all of which facilitate economic activity. This credit metric serves as a crucial barometer of financial intermediation and economic health, reflecting how effectively financial institutions mobilize resources to support private enterprises. By measuring this credit as a percentage of Gross Domestic Product (GDP), one can gauge the extent of financial support available relative to the economy's overall output. A higher ratio may indicate robust credit availability, promoting investment and growth, while a lower ratio could signal potential constraints on economic expansion, underscoring the importance of accessible financing in achieving sustained development. Source: