Argentina - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Argentina was 14.02 as of 2020. Its highest value over the past 60 years was 30.94 in 1977, while its lowest value was 10.85 in 2002.

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 23.48
1961 27.77
1962 21.73
1963 18.27
1964 21.47
1965 22.43
1966 20.54
1967 21.22
1968 21.69
1969 23.99
1970 24.44
1971 24.11
1972 23.89
1973 20.89
1974 22.26
1975 29.44
1976 30.73
1977 30.94
1978 27.80
1979 25.86
1980 25.26
1981 22.69
1982 21.75
1983 20.89
1984 19.96
1985 17.59
1986 17.46
1987 19.55
1988 18.64
1989 15.51
1990 14.00
1991 14.64
1992 16.70
1993 19.69
1994 19.97
1995 18.50
1996 19.62
1997 20.83
1998 20.97
1999 17.86
2000 17.53
2001 15.63
2002 10.85
2003 14.15
2004 17.55
2005 18.89
2006 18.68
2007 20.10
2008 19.57
2009 16.05
2010 17.71
2011 18.40
2012 16.50
2013 17.31
2014 17.26
2015 17.07
2016 17.66
2017 18.21
2018 16.61
2019 15.06
2020 14.02

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