Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for Aruba

DDDI12AWA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

89.45

Year-over-Year Change

76.57%

Date Range

1/1/1986 - 1/1/2020

Summary

This economic trend measures the ratio of private credit provided by deposit money banks and other financial institutions to GDP in Aruba. It is a key indicator of financial sector development and the availability of credit for private investment and consumption.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The private credit to GDP ratio reflects the size of the financial sector relative to the overall economy. Higher values suggest greater access to credit, which can drive economic growth, but also indicate potential financial risks if credit growth outpaces GDP.

Methodology

The data is collected by the World Bank from national sources and calculated as a percentage.

Historical Context

Policymakers and analysts use this indicator to assess financial sector depth and stability.

Key Facts

  • Private credit to GDP ratio in Aruba was 77.7% in 2020.
  • This indicator has trended upward in Aruba since the early 2000s.
  • High private credit growth can contribute to financial instability if not properly managed.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of private credit provided by deposit money banks and other financial institutions to the gross domestic product (GDP) in Aruba.

Q: Why is this trend relevant for users or analysts?

A: The private credit to GDP ratio is a key indicator of financial sector development and the availability of credit for private investment and consumption, which are important drivers of economic growth.

Q: How is this data collected or calculated?

A: The data is collected by the World Bank from national sources and calculated as a percentage of GDP.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this indicator to assess financial sector depth and stability, and to inform policies aimed at promoting sustainable credit growth and financial system development.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, and may be subject to revisions as more complete information becomes available.

Related Trends

Citation

U.S. Federal Reserve, Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for Aruba (DDDI12AWA156NWDB), retrieved from FRED.