Benin - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Benin was 25.63 as of 2020. Its highest value over the past 60 years was 27.60 in 1982, while its lowest value was 8.78 in 1965.

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 11.42
1961 10.96
1962 11.11
1963 11.62
1964 9.73
1965 8.78
1966 8.78
1967 11.83
1968 12.37
1969 12.66
1970 11.59
1971 10.29
1972 13.36
1973 13.08
1974 18.23
1975 19.30
1976 16.65
1977 17.75
1978 16.06
1979 19.02
1980 15.16
1981 15.68
1982 27.60
1983 17.32
1984 12.78
1985 8.94
1986 13.46
1987 12.93
1988 15.63
1989 11.82
1990 14.06
1991 14.48
1992 13.62
1993 16.06
1994 17.80
1995 21.42
1996 17.55
1997 18.54
1998 18.16
1999 18.23
2000 16.01
2001 17.75
2002 14.83
2003 15.16
2004 15.22
2005 12.09
2006 12.87
2007 16.38
2008 13.74
2009 14.87
2010 15.61
2011 16.46
2012 15.28
2013 18.86
2014 19.26
2015 20.73
2016 20.27
2017 23.96
2018 26.39
2019 25.63
2020 25.63

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