Lesotho - Domestic credit to private sector (% of GDP)

Domestic credit to private sector (% of GDP) in Lesotho was 21.54 as of 2019. Its highest value over the past 46 years was 22.02 in 1994, while its lowest value was 5.26 in 2004.

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
1973 6.83
1974 8.40
1975 7.63
1976 9.01
1977 8.11
1978 7.95
1979 9.76
1980 7.06
1981 10.90
1982 13.59
1983 11.80
1984 14.47
1985 15.36
1986 12.98
1987 14.73
1988 14.94
1989 14.85
1990 15.60
1991 16.16
1992 15.59
1993 17.98
1994 22.02
1995 18.25
1996 16.34
1997 21.37
1998 16.24
1999 14.75
2000 13.77
2001 12.47
2002 12.50
2003 5.35
2004 5.26
2005 7.23
2006 7.36
2007 9.99
2008 10.02
2009 12.61
2010 13.41
2011 14.35
2012 18.57
2013 19.95
2014 19.33
2015 18.27
2016 18.22
2017 20.01
2018 20.46
2019 21.54

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