Central Europe and the Baltics - Forest rents (% of GDP)

Forest rents (% of GDP) in Central Europe and the Baltics was 0.234 as of 2019. Its highest value over the past 39 years was 0.943 in 1988, while its lowest value was 0.186 in 2009.

Definition: Forest rents are roundwood harvest times the product of average prices and a region-specific rental rate.

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
1980 0.672
1981 0.549
1982 0.459
1983 0.475
1984 0.485
1985 0.573
1986 0.501
1987 0.830
1988 0.943
1989 0.758
1990 0.405
1991 0.385
1992 0.424
1993 0.490
1994 0.381
1995 0.393
1996 0.393
1997 0.368
1998 0.290
1999 0.353
2000 0.355
2001 0.295
2002 0.253
2003 0.268
2004 0.245
2005 0.213
2006 0.215
2007 0.216
2008 0.189
2009 0.186
2010 0.212
2011 0.228
2012 0.241
2013 0.226
2014 0.222
2015 0.218
2016 0.222
2017 0.260
2018 0.239
2019 0.234

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