Credit and debit card use around the world added nearly $1 trillion to the global economy between 2008 and 2012, adding as much as 0.2 percent to global gross domestic product, according to a new Moody’s Analytics study.
The study examined electronic payment data from 56 countries accounting for 93 percent of global GDP and found that the use of electronic payments added $983 billion to the economy, which helped bump global GDP from 1.6 percent to 1.8 percent. Developing countries benefited most from credit and debit card use, which added 4.89 percent to the GDP of China, 1.28 percent to Chile, and 1.15 percent to Brazil.
Moody’s Mark Zandi says electronic payments help to grow national and global economies by bringing the underbanked into the broader economy, where the effects of their economic activity are magnified. Domestically, electronic payments contributed a 0.3 percent boost to U.S. GDP between 2008 and 2012. However, during that period credit utilization rates expanded despite a trend among consumers toward deleveraging.Back To Blog