For at least a quarter-century, the financial sector has grown much more rapidly than the economy as a whole, both in developed and in most developing countries. But there is strong evidence that this was a relatively short-term phenomenon, and that the industry's salad days are well and truly over.
LONDON – For at least a quarter-century, the financial sector has grown far more rapidly than the economy as a whole, both in developed and in most developing countries. The ratio of total financial assets (stocks, bonds, and bank deposits) to GDP in the United Kingdom was about 100% in 1980, while by 2006 it had risen to around 440%. In China, financial assets went from being virtually non-existent to well over 300% of GDP during this period.
LONDON – For at least a quarter-century, the financial sector has grown far more rapidly than the economy as a whole, both in developed and in most developing countries. The ratio of total financial assets (stocks, bonds, and bank deposits) to GDP in the United Kingdom was about 100% in 1980, while by 2006 it had risen to around 440%. In China, financial assets went from being virtually non-existent to well over 300% of GDP during this period.