Multidimensional Analysis of the Impact of Financial Inclusion on Macroeconomic Stability: Evidence from Rwanda, Peru, Chile, and Poland

Financial inclusion is defined as the accessibility of financial services within a regulated financial system. Economies enhance and adapt their financial infrastructure to facilitate easier access to credit, thereby supporting GDP growth. This includes improving infrastructure, such as expanding internet coverage in rural areas, to enable efficient use of technology in accessing financial services. Financial inclusion is a mechanism through which individuals can save and access credit at reasonable rates in a regulated financial system, thereby contributing to economic growth. The objective of the research was to examine the impact of financial inclusion on macroeconomic stability, particularly in the context of rising public debt and budget deficits, and economic growth across selected economies. To achieve this, linear dependency models for time series data and Ordinary Least Squares (OLS) were applied as an estimation method. The dataset employed for this study was obtained from the International Monetary Fund, the World Development Indicators, and the Organization for Economic Co-operation and Development, and encompasses four countries Rwanda, Peru, Chile, and Poland from 2008 to 2021. The findings indicate a positive and strong relationship between financial inclusion and macroeconomic stability. However, in the case of Chile, the relationship was found to be moderate, which can be attributed to the indebtedness of the younger population, who often access loans but struggle with repayment.