Algeria - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Algeria was 43.38 as of 2020. Its highest value over the past 60 years was 52.22 in 1978, while its lowest value was 17.32 in 1966.

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 42.18
1961 47.19
1962 35.42
1963 28.94
1964 21.85
1965 22.60
1966 17.32
1967 23.43
1968 27.87
1969 32.35
1970 36.65
1971 35.28
1972 34.30
1973 40.28
1974 40.02
1975 45.41
1976 43.35
1977 46.91
1978 52.22
1979 42.55
1980 39.08
1981 36.99
1982 37.28
1983 37.57
1984 35.16
1985 34.57
1986 33.56
1987 27.56
1988 27.64
1989 30.07
1990 28.59
1991 31.84
1992 30.76
1993 29.09
1994 30.08
1995 30.91
1996 25.68
1997 22.45
1998 27.15
1999 26.25
2000 23.56
2001 26.84
2002 30.65
2003 30.34
2004 33.26
2005 31.66
2006 30.17
2007 34.47
2008 37.35
2009 46.88
2010 41.43
2011 38.05
2012 39.15
2013 43.41
2014 45.63
2015 50.78
2016 50.78
2017 48.54
2018 47.41
2019 45.83
2020 43.38

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