The Importance of Access to Credit on Economic Growth

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Financial intermediation through enhancement of credit has been the driver of economic growth in many developed countries.

Credit in most developing countries has been described as the panacea or missing ingredient to stimulate growth.

A number of studies world wide have documented that credit is positively related to changes in economic growth.

However some studies have revealed that there is a causal relationship between credit and economic growth.

It can be economic growth that enhances credit.

The paper analyses the importance of credit on economic growth in Zimbabwe.

The subject herein is of critical importance for policy makers.

discussion of how access to credit will input on economic growth is given .Barriers hindering effective accessing of credit such as collateral ,costs are analyzed and other economic indicators .A descriptive research design was adopted to determine whether there are financial institutions extending credit facilities in the current economic environment.

Qualitative data was gathered by way of questionnaires and interviews and targets of the study were financial institutions and users of credit facilities.

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