Arab World - Households and NPISHs final consumption expenditure (% of GDP)

Households and NPISHs final consumption expenditure (% of GDP) in Arab World was 55.93 as of 2020. Its highest value over the past 52 years was 66.29 in 1989, while its lowest value was 33.45 in 1974.

Definition: Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. This item also includes any statistical discrepancy in the use of resources relative to the supply of resources.

Source: World Bank national accounts data, and OECD National Accounts data files.

See also:

Year Value
1968 59.82
1969 59.52
1970 60.32
1971 57.52
1972 55.33
1973 50.25
1974 33.45
1975 40.79
1976 38.76
1977 44.63
1978 47.00
1979 42.99
1980 37.81
1981 40.72
1982 48.97
1983 53.91
1984 56.15
1985 59.20
1986 63.62
1987 63.58
1988 62.97
1989 66.29
1990 57.36
1991 58.85
1992 57.54
1993 61.19
1994 60.77
1995 60.50
1996 59.50
1997 58.39
1998 61.46
1999 56.86
2000 49.93
2001 51.43
2002 51.93
2003 50.01
2004 47.68
2005 44.05
2006 43.39
2007 45.27
2008 43.53
2009 50.18
2010 45.17
2011 39.94
2012 39.51
2013 40.45
2014 43.00
2015 49.22
2016 51.21
2017 49.20
2018 46.48
2019 47.75
2020 55.93

Limitations and Exceptions: Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total. Household final consumption expenditure is often estimated as a residual, by subtracting all other known expenditures from GDP. The resulting aggregate may incorporate fairly large discrepancies. When household consumption is calculated separately, many of the estimates are based on household surveys, which tend to be one-year studies with limited coverage. Thus the estimates quickly become outdated and must be supplemented by estimates using price- and quantity-based statistical procedures. Complicating the issue, in many developing countries the distinction between cash outlays for personal business and those for household use may be blurred. Informal economic activities pose a particular measurement problem, especially in developing countries, where much economic activity is unrecorded. A complete picture of the economy requires estimating household outputs produced for home use, sales in informal markets, barter exchanges, and illicit or deliberately unreported activities. The consistency and completeness of such estimates depend on the skill and methods of the compiling statisticians.

Statistical Concept and Methodology: Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts