Heavily indebted poor countries (HIPC) - Domestic credit to private sector (% of GDP)

Domestic credit to private sector (% of GDP) in Heavily indebted poor countries (HIPC) was 18.11 as of 2020. Its highest value over the past 57 years was 20.86 in 2019, while its lowest value was 6.83 in 1963.

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
1963 6.83
1964 8.38
1965 7.47
1966 7.31
1967 8.02
1968 8.37
1969 8.26
1970 8.55
1971 8.99
1972 9.76
1973 10.37
1974 11.51
1975 13.06
1976 13.34
1977 14.19
1978 15.43
1979 16.35
1980 17.20
1981 15.54
1982 15.42
1983 15.27
1984 14.12
1985 13.43
1986 14.57
1987 15.46
1988 13.47
1989 13.28
1990 13.76
1991 12.53
1992 11.40
1993 10.01
1994 7.85
1995 7.88
1996 8.43
1997 8.63
1998 8.77
1999 9.17
2000 7.72
2001 9.58
2002 9.61
2003 10.07
2004 10.23
2005 11.68
2006 12.78
2007 13.42
2008 13.92
2009 14.83
2010 15.05
2011 15.06
2012 16.36
2013 16.81
2014 17.76
2015 19.29
2016 20.01
2017 20.03
2018 20.16
2019 20.86
2020 18.11

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