A B S T R A C T

The purpose of the research – the study aims to investigate the role of financial factors in national economic development, identifying the opportunities that enhance their effectiveness as well as the challenges that limit their potential.

The methodology of the research – the article applies a theoretical literature review, analytical assessment based on statistical indicators, comparative evaluation, and empirical approaches to examine the effectiveness of financial mechanisms.

The practical importance of the research – the findings have practical relevance for government socio-economic policy, the strategic operations of financial institutions, and entrepreneurship development. They also provide a theoretical basis for further studies on financial inclusion and sustainable development.

The results of the research – the analysis revealed that inefficient financial institutions, limited credit accessibility, weak financial infrastructure, and policy inconsistencies are key barriers to national economic growth. At the same time, financial sector reforms, digital financial services, and innovative financial instruments offer opportunities to mobilize and allocate capital more effectively.

The originality and scientific novelty of the research – the article presents a com­prehensive approach to analyzing the role of financial factors in economic development. It highlights the importance of enhancing financial literacy, expanding public-private partner­ships, and adopting new financial technologies as innovative contributions to strengthening financial effectiveness in fostering sustainable growth.

Keywords: financial factors, national economic development, financial inclusion, invest­ment, credit accessibility, financial reforms, economic growth, financial infrastructure, fiscal policy, sustainable development.

http://doi.org/10.59610/bbu3.2025.3.6