Algeria - Total natural resources rents (% of GDP)

Total natural resources rents (% of GDP) in Algeria was 16.42 as of 2019. Its highest value over the past 49 years was 39.17 in 1979, while its lowest value was 7.85 in 1986.

Definition: Total natural resources rents are the sum of oil rents, natural gas rents, coal rents (hard and soft), mineral rents, and forest rents.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

Year Value
1970 8.69
1971 8.47
1972 10.31
1973 12.01
1974 29.29
1975 23.99
1976 25.09
1977 24.70
1978 21.42
1979 39.17
1980 32.06
1981 24.37
1982 18.66
1983 18.21
1984 17.01
1985 15.64
1986 7.85
1987 9.80
1988 9.11
1989 13.98
1990 17.71
1991 15.08
1992 15.17
1993 13.76
1994 14.26
1995 16.17
1996 19.02
1997 17.97
1998 11.69
1999 15.66
2000 24.40
2001 21.86
2002 21.87
2003 23.44
2004 25.07
2005 32.44
2006 34.41
2007 32.46
2008 34.25
2009 24.53
2010 26.28
2011 31.05
2012 30.04
2013 27.80
2014 24.15
2015 15.86
2016 12.03
2017 14.31
2018 18.47
2019 16.42

Development Relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

Statistical Concept and Methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP