Relationship between credit and GDP
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Authors
Hairabi, Marouane
Issue Date
2019-03-29
Type
Other
Language
en_US
Keywords
Credit , Gross domestic product
Alternative Title
Abstract
This research tries to answer the question: "How strong is the dependency of the GDP of a country to the amount of Credits in the economy?". The main results implied a strong dependency of these two macro variables, and it was also found that to the contrary of predictions, the effects of more loans can be felt the same year, giving more loans in a certain year will increase the GDP in that same year more than it will affect the following time periods.The relationship between the growth of these two two variables is almost perfectly linear. Which might be useful for governments to predict the economy growth if they can know the increase of loans that will be given in the economy. A very interesting side-finding was the dependency of countries to each other and global impact a financial crisis will have on all economies.