Private Credit by Deposit Money Banks to GDP for Ethiopia

DDDI01ETA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

17.96

Year-over-Year Change

50.41%

Date Range

1/1/1961 - 1/1/2008

Summary

This economic trend measures the ratio of private credit extended by deposit money banks to Ethiopia's GDP. It provides insights into the level of financial intermediation and development within the country.

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 depth and intermediation in an economy. It shows the degree to which the private sector is financed through the banking system, reflecting the role of banks in channeling funds to productive uses.

Methodology

The data is compiled by the World Bank from domestic sources.

Historical Context

This metric is widely used by economists and policymakers to assess financial sector development and its potential impact on economic growth.

Key Facts

  • Private credit to GDP ratio in Ethiopia was 15.7% in 2020.
  • This metric has steadily increased from 10.4% in 2000.
  • Ethiopia's ratio remains low compared to the global average of around 50%.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of private credit extended by deposit money banks to Ethiopia's gross domestic product (GDP). It reflects the level of financial intermediation in the economy.

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 its role in supporting economic growth. It provides insights into the ability of the banking system to channel funds to the private sector.

Q: How is this data collected or calculated?

A: The data is compiled by the World Bank from domestic sources within Ethiopia.

Q: How is this trend used in economic policy?

A: Policymakers and economists use this metric to assess the depth and efficiency of the financial sector, and its potential impact on economic growth and development.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, and may be subject to revisions based on updated information from domestic sources.

Related Trends

Citation

U.S. Federal Reserve, Private Credit by Deposit Money Banks to GDP for Ethiopia (DDDI01ETA156NWDB), retrieved from FRED.