The effect on capital flows The impact of the above developments has been reflected in the Australian balance of payments (BOP) data, which indicate that foreign capital flows into the Australian resources sector have grown from an average of around 1 per cent of annual GDP in 2007 to around 3½ per cent in 2012.4 This constitutes a significant change in the composition of capital flows in the Australian economy; one of three noteworthy changes in recent years.
Financial Inclusion promotes thrift and develops culture of saving and also enables efficient payment mechanism strengthening the resource base of the financial institution which benefits the economy as resources become available for efficient payment mechanism and allocation. The empirical evidence shows that countries with large proportion of population excluded from the formal financial system also show higher poverty ratios and higher inequality.