In economics, the relationship between finance and the economy is the relationship between savings, investment, and production. In other words, it is about how much money people have to spend on goods and services.

There are many factors that contribute to this relationship such as interest rates, inflation rates, unemployment rates, and demographic changes.

Finance and Economics are related but not identical disciplines

Finance deals with the management of money, capital, and assets. Economics is a social science that deals with the production, supply, and consumption of either goods or services.