Comparing the Value of Credit in the U.S. to GDP

Charts of the Week — September 23, 2022

Markets By Gregory Blaha

The amount of outstanding private credit in the U.S. experienced a brief decline during the financial crisis, but government debt grew throughout the entire period. Both are now at new highs.

The total value of credit in the U.S. as a percentage of GDP rose to roughly 367% in the second quarter.

As the next charts show, government credit and private credit grew at almost the exact same rate over the last year.