Which country has the most Domestic credit provided by financial sector (% of GDP)?

Japan has the highest percentage of Domestic credit provided by the financial sector at 390.56% of GDP.

Which country has the least Domestic credit provided by financial sector (% of GDP)?

Tajikistan has the lowest percentage of Domestic credit provided by the financial sector at 13.64% of GDP.

What is the average Domestic credit provided by financial sector (% of GDP) among the listed countries?

The average percentage of Domestic credit provided by the financial sector among the listed countries is 92.41% of GDP.

What does the statistic Domestic credit provided by financial sector (% of GDP) measure?

The statistic measures the total credit provided by the domestic financial sector to various sectors, excluding credit to the central government, as a percentage of the country's GDP.

Domestic credit provided by financial sector (% of GDP)

Countries By Domestic credit provided by financial sector (% of GDP)

Key points

Japan has the highest domestic credit provided by the financial sector as a percentage of GDP, standing at an impressive 390.56%.
On the other end of the spectrum, Tajikistan has the lowest domestic credit provided by the financial sector, with only 13.64% of GDP.
The average domestic credit provided by the financial sector across all listed countries is approximately 92.41% of GDP.
Many countries with high domestic credit percentages are either developed economies or small island nations reliant on services and tourism, such as Fiji, New Zealand, and the United Arab Emirates.
Countries with lower domestic credit percentages may indicate underdeveloped financial sectors or a reliance on other sources of funding for economic activities.

Official Definition of Domestic credit provided by financial sector (% of GDP)

Domestic credit provided by the financial sector includes all credit to various sectors on a gross basis, with the exception of credit to the central government, which is net. The financial sector includes 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.

Importance

Domestic credit provided by the financial sector (% of GDP) is a crucial macroeconomic statistic for a country. This statistic matters because it reflects the depth of financial intermediation within the economy. A low value of this statistic could indicate limited access to credit for businesses and individuals, potentially hindering investment, consumption, and overall economic growth. On the other hand, a high value of this statistic could suggest a well-functioning financial sector that is efficiently allocating capital to productive uses, supporting economic expansion, job creation, and innovation.

Top 10 Countries by Domestic credit provided by financial sector (% of GDP)

Bottom 10 Countries by Domestic credit provided by financial sector (% of GDP)

Regions

Europe

Domestic credit provided by the financial sector varies significantly among the selected countries. Norway stands out with a high percentage of 163.36%, indicating a robust financial sector supporting economic activities. In contrast, Moldova has a much lower percentage of 30.97%, suggesting limited access to credit for its economy. Advantages of high domestic credit include enhanced investment and economic growth, as seen in Norway. However, this can also lead to potential overheating and financial instability. On the other hand, countries with lower percentages like Moldova face challenges in accessing funds for development, hampering their growth potential and resilience to economic shocks.

Far East: East Asia, SE Asia, Australia

Domestic credit provided by the financial sector as a percentage of GDP varies significantly among the selected countries. Japan stands out with a high percentage of 390.56%, indicating a robust financial sector supporting economic activities. Thailand follows with 194.44%, reflecting a healthy credit environment. The Philippines also shows a high percentage at 100.27%, signaling a well-developed financial sector. Indonesia, Brunei, and Papua New Guinea have comparatively lower percentages, suggesting room for growth in their financial sectors. Higher domestic credit implies easier access to funds for investments but also poses risks such as potential debt crises. Overall, this statistic indicates the level of financial intermediation in each country, impacting economic growth and stability differently based on the country's credit utilization efficiency.

ASEAN

Domestic credit provided by the financial sector as a percentage of GDP is indicative of a country's access to credit and financial stability. Among the countries listed, Thailand stands out with the highest percentage at 194.44%, suggesting a large reliance on credit for economic activities. The Philippines follows close behind with 100.27%, indicating a significant portion of economic growth fueled by credit. Indonesia shows a moderate percentage of 53.69%, while Brunei has the lowest at 66.09%. High domestic credit can spur economic growth but also poses risks of debt vulnerability. On the other hand, low credit levels may constrain investment and development. Each country's unique position reflects differing levels of financial deepening and potential for sustained economic growth.

Latin America

Domestic credit provided by the financial sector as a percentage of GDP varies significantly among the selected countries. Chile leads the group with 147.12%, showcasing a robust financial sector. El Salvador follows at 115.73%, indicating a well-capitalized economy. Meanwhile, Nicaragua lags behind at 38.11%, signaling limited access to credit. High domestic credit, such as in Panama at 89.80%, can stimulate economic growth but may also lead to debt vulnerabilities. On the other hand, low figures like Guatemala's 47.78% reflect underdeveloped financial systems. Overall, this statistic highlights each country's financial health, accessibility to credit, and potential risks in managing debt and economic stability.

Middle East

Armenia and Georgia have high levels of domestic credit provided by the financial sector, indicating a strong financial sector supporting economic activities. Morocco, Turkey, and the United Arab Emirates also have substantial percentages, suggesting healthy access to credit for various sectors. Azerbaijan lags behind significantly in this aspect. Higher domestic credit can stimulate economic growth but also poses risks of financial imbalances and debt accumulation, which countries must manage prudently. This statistic reflects the diverse financial landscapes across these countries, impacting their development potential and resilience to financial shocks differently.

Rivals

Anglosphere v BRICS

Among the countries listed, the United States has the highest Domestic credit provided by the financial sector (% of GDP) at 280.17%, indicating a significant reliance on credit within the economy. New Zealand follows with 184.99%, showing a sizeable credit provision as well. Meanwhile, South Africa and the Russian Federation have lower percentages at 140.14% and 86.16% respectively, suggesting comparatively lower credit utilization. The United States benefits from robust financial services supporting economic expansion but faces the risk of over-leveraging. New Zealand's high credit percentage could indicate investment opportunities but also vulnerability to market fluctuations. South Africa and Russia may have room for credit expansion for growth but could face challenges in maintaining stability. The statistic reflects each country's economic health, highlighting the balance between credit access for development and risks associated with high debt levels.

Russia v Ukraine

Domestic credit provided by the financial sector is significant in both Russia and Ukraine, with Russia having a higher percentage at 86.16% of GDP compared to Ukraine's 50.81%. This indicates that both countries heavily rely on credit from the financial sector for economic activities. In Russia, the high percentage suggests a well-developed financial sector supporting various industries, but it also poses a risk of potential financial instability. In contrast, Ukraine's lower percentage may indicate limited access to credit or a less developed financial sector. The impact of this statistic on both countries is crucial for economic growth and stability, with Russia benefiting from robust financial support while Ukraine may need to focus on improving access to credit for sustainable development.

FAQs

Which country has the most Domestic credit provided by financial sector (% of GDP)?
Japan has the highest percentage of Domestic credit provided by the financial sector at 390.56% of GDP.
Which country has the least Domestic credit provided by financial sector (% of GDP)?
Tajikistan has the lowest percentage of Domestic credit provided by the financial sector at 13.64% of GDP.
What is the average Domestic credit provided by financial sector (% of GDP) among the listed countries?
The average percentage of Domestic credit provided by the financial sector among the listed countries is 92.41% of GDP.
What does the statistic Domestic credit provided by financial sector (% of GDP) measure?
The statistic measures the total credit provided by the domestic financial sector to various sectors, excluding credit to the central government, as a percentage of the country's GDP.
How can high or low values of Domestic credit provided by financial sector (% of GDP) impact a country's economy?
High values may indicate a high level of debt and financial risk, while low values may suggest limited access to credit, potentially hindering economic growth and investment.