Private Credit by Deposit Money Banks to GDP for Aruba

DDDI01AWA156NWDB • 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 by deposit money banks to the gross domestic product (GDP) of Aruba. It provides insights into the level of financial intermediation and the development of the banking sector in the Aruban economy.

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 is a key indicator of financial development and the role of the banking system in supporting private sector economic activity. It helps analysts and policymakers assess the depth and efficiency of the financial system in allocating resources to the private sector.

Methodology

The data is collected and calculated by the World Bank using information from central banks, national statistical offices, and other official sources.

Historical Context

This trend is widely used by economists, investors, and policymakers to evaluate the financial landscape and guide economic policies in Aruba.

Key Facts

  • Aruba's private credit to GDP ratio was 58.6% in 2020.
  • The ratio has fluctuated between 50-60% over the past decade.
  • Aruba has a relatively developed banking system compared to other Caribbean nations.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of private credit provided by deposit money banks to the gross domestic product (GDP) of Aruba. It reflects the size of the banking sector relative to the overall economy.

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

A: The private credit to GDP ratio is a key indicator of financial development and the ability of the banking system to channel resources to the private sector, which is crucial for economic growth and stability.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank using information from central banks, national statistical offices, and other official sources.

Q: How is this trend used in economic policy?

A: Policymakers and economists use this trend to assess the depth and efficiency of Aruba's financial system, which can inform policies aimed at promoting financial inclusion, credit access, and overall economic development.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, so the most recent year may not be immediately available. Additionally, the reliability of the data may be affected by the quality of reporting from Aruban authorities.

Related Trends

Citation

U.S. Federal Reserve, Private Credit by Deposit Money Banks to GDP for Aruba (DDDI01AWA156NWDB), retrieved from FRED.