The Influence of Private Credit on Economic Development in Romania

In a period marked by globalization, social, and military events with profound national and international implications, Romania must aim for sustainable economic development. The Gross Domestic Product (GDP) can be used to measure a country’s level of economic development. Considering that the engine of growth is the private sector, this paper aims to analyse the influence the private sector’s level of lending has on the GDP. For this purpose, a linear regression was created to analyse the dependence of GDP on credit granted to the private sector. The model shows the positive impact that domestic credit granted to the private sector has on economic development, i.e. increases in domestic credit granted to the private sector result in increases in GDP.