Broad money growth (annual %)
Countries By Broad money growth (annual %)
Key points
- Broad money growth (% of GDP) is a critical macroeconomic indicator that reflects the expansion of the money supply within an economy over a specific period.
- Zimbabwe demonstrated the highest broad money growth at a staggering 485.55%, indicating significant monetary expansion and potential economic instability.
- On the other end of the spectrum, Saint Lucia experienced a negative growth rate of -12.69%, suggesting a potential decrease in money supply or economic contraction.
- The average broad money growth rate among the listed countries stands at 18.03%, highlighting overall monetary expansion and economic activity.
- High growth rates in countries like Sudan (88.00%), Suriname (62.05%), and Turkey (34.24%) could indicate a surge in liquidity, posing risks such as inflation or asset bubbles.
Official Definition of Broad money growth (annual %)
Broad money (IFS line 35L..ZK) is the sum of currency outside banks; demand deposits other than those of the central government; the time, savings, and foreign currency deposits of resident sectors other than the central government; bank and traveler’s checks; and other securities such as certificates of deposit and commercial paper.
Importance
Broad money growth is a crucial macroeconomic statistic that measures the annual percentage change in the total money supply within an economy. It is significant to a country as it reflects the pace at which money supply is expanding, which in turn influences various economic factors.
When the broad money growth rate is low, it can indicate a sluggish economy with reduced spending and investment activities. This could lead to lower economic growth, as businesses may face challenges in accessing capital for expansion and innovation. Additionally, a low broad money growth rate may result in lower levels of consumer spending, further hampering economic growth.
On the other hand, a high broad money growth rate can signal potential inflationary pressures within an economy. Excessive growth in the money supply without a proportional increase in the production of goods and services can lead to a rise in prices, eroding the purchasing power of the currency. In such cases, central banks may need to implement tight monetary policies to control inflation, which could impact interest rates and borrowing costs for businesses and consumers.
Therefore, monitoring the broad money growth rate is vital for policymakers to assess the health of an economy, make informed decisions on monetary policy, and take appropriate measures to maintain stability and sustainable economic growth.
Top 10 Countries by Broad money growth (annual %)
Bottom 10 Countries by Broad money growth (annual %)
Regions
Europe
The data on Broad money growth (annual %) for the listed countries varies significantly, with Ukraine showing the highest growth rate of 28.62% and Montenegro experiencing a negative growth rate of -3.75%. Countries like Hungary, Serbia, and Sweden also exhibit high growth rates above 18%. These high growth rates indicate potentially robust economic activity and increasing money supply. However, rapid growth in broad money can lead to inflationary pressures and economic instability. For countries like Belarus and Bosnia and Herzegovina with more moderate growth rates, stability may be an advantage. Overall, the statistic reflects the differing economic landscapes and policy approaches of each country, impacting their development trajectory and economic resilience in the face of external shocks.
Far East: East Asia, SE Asia, Australia
Australia, Cambodia, Mongolia, Myanmar, Singapore, and Vietnam have the highest broad money growth rates, indicating robust economic activity and liquidity. These countries might experience inflationary pressures but also have increased investment opportunities. Brunei, Japan, Korea, Malaysia, the Philippines, and Thailand have moderate growth rates, suggesting stable economic conditions with steady money supply expansion. However, they may face challenges in stimulating economic growth. Overall, this statistic reflects the monetary policies and economic outlook of each country, impacting their development through influencing interest rates, investments, and inflation levels.
ASEAN
Brunei's negative Broad Money growth indicates a contraction in its money supply, possibly signaling economic slowdown. Cambodia, Myanmar, Singapore, and Vietnam exhibit high growth rates, suggesting robust economic activity and investment. Indonesia, Philippines, and Thailand show moderate growth, indicating stability. Malaysia's low growth may imply a cautious approach to monetary expansion. The advantage of high growth is increased liquidity for investment, but it can lead to inflation. Conversely, low growth may indicate stability but could hinder economic expansion. Broad money growth impacts development by influencing investment, inflation, and overall economic health, shaping each country's monetary policy and economic trajectory accordingly.
Latin America
Broad money growth (annual %) varies among the listed countries, with Uruguay exhibiting the highest growth rate at 24.33% and El Salvador the lowest at 8.87%. Uruguay, Dominican Republic, and Paraguay experience relatively high growth rates, indicating robust economic activity and potential inflation risks. In contrast, Bolivia, Ecuador, and El Salvador have slower growth rates, suggesting more stable economic conditions but possibly slower development. High broad money growth can spur investment and consumption, boosting economic growth but risking inflation, while low growth may signify stability but could hinder economic expansion and innovation in the long term.
Middle East
Broad money growth is a crucial indicator of a country's economic health. Turkey stands out with a high annual growth rate of 34.24%, indicating a strong economy but potentially risking inflation. Georgia and Israel follow closely with 24.61% and 22.02% respectively, showing robust financial sectors. Egypt, Libya, and Tunisia also show significant growth, suggesting increasing economic activity. Conversely, Azerbaijan and Kuwait have lower growth rates, signaling potential economic stagnation. This statistic's impact on development varies; high growth can spur investment but may lead to inflation, while low growth may indicate economic challenges like reduced consumer spending or investment.
Rivals
Anglosphere v BRICS
Australia, Brazil, and the United States have higher than average broad money growth, indicating strong monetary expansion and potential economic growth. Brazil stands out with the highest growth rate, suggesting robust economic activity and investment. China and India show moderate growth, reflecting steady economic development. New Zealand and the United Kingdom have slightly lower growth rates, which may indicate more conservative monetary policies. The Russian Federation and South Africa exhibit the lowest growth rates, potentially facing challenges in stimulating economic activity. High broad money growth can lead to inflation but also spur investment and consumption, while low growth rates may hinder economic expansion but help control inflation and stabilize the currency, impacting each country's economic development differently.
Russia v Ukraine
Broad money growth in the Russian Federation stands at 16.66% annually, while in Ukraine it is notably higher at 28.62%. This indicates a stronger rate of money supply expansion in Ukraine compared to Russia. Ukraine may benefit from increased liquidity for investments and economic activities, potentially spurring growth. However, this rapid growth could also lead to inflationary pressures and currency devaluation risks. In contrast, Russia's more moderate growth suggests a more stable monetary environment but may limit immediate investment opportunities. Overall, the statistic highlights divergent monetary policies between the two countries, with Ukraine poised for potentially rapid but riskier economic development compared to Russia.
India v Pakistan
India and Pakistan both show positive growth in broad money, with India at 12.48% and Pakistan at 15.63%. Pakistan's higher percentage indicates a faster expansion of its money supply compared to India. This suggests potential higher inflationary pressures for Pakistan. For India, the moderate growth may indicate a more stable monetary policy approach. Advantages for Pakistan could include increased liquidity for investments, but this might also lead to inflation and currency depreciation risks. India's moderate growth may support economic stability but could hinder rapid economic expansion. In both countries, the statistic reflects the pace of monetary expansion and potential implications for overall economic development and stability.
China v Japan
China, People's Republic of, exhibits a broad money growth rate of 10.01% annually, indicating robust monetary expansion. In contrast, Japan's broad money growth stands at 7.35%, slightly lower than China's but still showing healthy monetary growth. China benefits from this higher growth in broad money by fueling increased investment and economic activity, yet faces the risk of potential inflation. Meanwhile, Japan's more moderate growth may reflect a more stable economic environment but could also suggest slower economic expansion. This statistic implies that China may experience faster economic development and inflationary pressures compared to Japan, potentially leading to different economic policy approaches for each country.
FAQs
- Which country has the most Broad Money growth?
Zimbabwe has the highest Broad Money growth rate at 485.55% (annual %). - Which country has the least Broad Money growth?
Saint Lucia has the lowest Broad Money growth rate at -12.69% (annual %). - What is the average Broad Money growth rate among the listed countries?
The average Broad Money growth rate among the listed countries is 18.03% (annual %). - How is Broad Money growth calculated?
Broad Money growth represents the annual percentage change in the sum of various financial indicators such as currency outside banks, demand deposits, time and savings deposits, bank checks, and securities in a country. - Why is Broad Money growth an important macroeconomic indicator?
Broad Money growth is a crucial indicator of the overall health and stability of a country's financial system. High growth rates can signal economic expansion, but excessive growth may lead to inflationary pressures.