Lower middle income - Domestic credit to private sector (% of GDP)

Domestic credit to private sector (% of GDP) in Lower middle income was 46.89 as of 2020. Its highest value over the past 60 years was 46.89 in 2020, while its lowest value was 8.39 in 1960.

Definition: Domestic credit to private sector refers to financial resources provided to the private sector by financial corporations, such as through loans, purchases of nonequity securities, and trade credits and other accounts receivable, that establish a claim for repayment. For some countries these claims include credit to public enterprises. The financial corporations include monetary authorities and deposit money banks, as well as other financial corporations where data are available (including corporations that do not accept transferable deposits but do incur such liabilities as time and savings deposits). Examples of other financial corporations are finance and leasing companies, money lenders, insurance corporations, pension funds, and foreign exchange companies.

Source: International Monetary Fund, International Financial Statistics and data files, and World Bank and OECD GDP estimates.

See also:

Year Value
1960 8.39
1961 9.38
1962 9.83
1963 10.43
1964 10.65
1965 11.62
1966 12.43
1967 12.72
1968 13.58
1969 14.12
1970 13.97
1971 15.21
1972 16.47
1973 16.46
1974 14.95
1975 17.55
1976 19.90
1977 20.69
1979 23.47
1980 23.62
1981 20.88
1982 21.89
1983 23.51
1984 23.94
1985 24.61
1986 26.72
1987 26.09
1988 25.36
1989 25.60
1990 24.26
1991 21.88
1992 20.74
1993 20.91
1994 21.60
1995 22.16
1996 22.96
1997 24.17
1998 24.06
1999 25.30
2000 26.90
2001 28.15
2002 29.28
2003 29.06
2004 31.17
2005 32.82
2006 34.86
2007 37.65
2008 41.16
2009 39.55
2010 40.77
2011 40.72
2012 40.84
2013 40.45
2014 41.29
2015 42.51
2016 43.93
2017 43.02
2018 43.64
2019 43.80
2020 46.89

Development Relevance: Private sector development and investment - tapping private sector initiative and investment for socially useful purposes - are critical for poverty reduction. In parallel with public sector efforts, private investment, especially in competitive markets, has tremendous potential to contribute to growth. Private markets are the engine of productivity growth, creating productive jobs and higher incomes. And with government playing a complementary role of regulation, funding, and service provision, private initiative and investment can help provide the basic services and conditions that empower poor people - by improving health, education, and infrastructure.

Limitations and Exceptions: Credit to the private sector may sometimes include credit to state-owned or partially state-owned enterprises.

Statistical Concept and Methodology: Credit is an important link in money transmission; it finances production, consumption, and capital formation, which in turn affect economic activity. The data on domestic credit provided to the private sector are taken from the financial corporations survey (line 52D) of the International Monetary Fund's (IMF) International Financial Statistics or, when unavailable, from its depository survey (line 32D). The banking sector includes monetary authorities (the central bank) and deposit money banks, as well as other financial corporations where data are available (including institutions that do not accept transferable deposits but do incur such liabilities as time and savings deposits). Examples of other financial corporations are finance and leasing companies, money lenders, insurance corporations, pension funds, and foreign exchange companies.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Assets