FINANCIAL INCLUSION AND ECONOMIC GROWTH: THEORY AND PRACTICE (BASED ON THE CASE OF THE REPUBLIC OF ARMENIA)

Financial inclusion is the active participation of individuals, businesses, and government agencies in financial systems, including banking, investment, lending, and financial markets. It plays an important role in facilitating the allocation of capital, expanding access to financial services, and strengthening economic stability. A high level of financial inclusion contributes to increased economic stability, efficient capital allocation, and overall access to financial services, contributing to the growth of economic productivity. Economic growth refers to an increase in the production of goods and services over time and is usually measured by indicators such as gross domestic product (GDP). A sustainable financial system ensures efficient capital allocation, entrepreneurship, and technological innovation, which are key factors in sustainable economic growth. The relationship between financial activity and economic growth remains the subject of extensive research.