Dominican Republic - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Dominican Republic was 25.38 as of 2020. Its highest value over the past 60 years was 30.02 in 2008, while its lowest value was 8.87 in 1961.

Definition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation.

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

See also:

Year Value
1960 12.61
1961 8.87
1962 11.90
1963 16.02
1964 18.32
1965 9.77
1966 15.86
1967 15.53
1968 15.37
1969 18.13
1970 19.14
1971 17.86
1972 19.71
1973 22.10
1974 23.35
1975 24.51
1976 22.31
1977 21.79
1978 23.87
1979 25.36
1980 24.63
1981 22.70
1982 19.24
1983 19.76
1984 17.88
1985 17.37
1986 19.57
1987 22.84
1988 23.22
1989 25.76
1990 23.35
1991 16.65
1992 18.79
1993 19.76
1994 21.00
1995 20.05
1996 20.05
1997 22.10
1998 28.07
1999 27.11
2000 27.89
2001 26.77
2002 26.96
2003 19.41
2004 20.63
2005 24.77
2006 26.93
2007 28.35
2008 30.02
2009 23.57
2010 26.38
2011 25.03
2012 24.30
2013 22.72
2014 23.11
2015 23.44
2016 22.97
2017 22.47
2018 25.80
2019 26.00
2020 25.38

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. Data on capital formation may be estimated from direct surveys of enterprises and administrative records or based on the commodity flow method using data from production, trade, and construction activities. The quality of data on government fixed capital formation depends on the quality of government accounting systems (which tend to be weak in developing countries). Measures of fixed capital formation by households and corporations - particularly capital outlays by small, unincorporated enterprises - are usually unreliable. Estimates of changes in inventories are rarely complete but usually include the most important activities or commodities. In some countries these estimates are derived as a composite residual along with household final consumption expenditure. According to national accounts conventions, adjustments should be made for appreciation of the value of inventory holdings due to price changes, but this is not always done. In highly inflationary economies this element can be substantial.

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