Cyprus - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Cyprus was 18.87 as of 2020. Its highest value over the past 45 years was 38.73 in 1979, while its lowest value was 12.93 in 2013.

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
1975 22.53
1976 26.56
1977 34.89
1978 37.22
1979 38.73
1980 37.81
1981 33.81
1982 31.72
1983 30.11
1984 33.60
1985 30.34
1986 25.92
1987 25.53
1988 27.46
1989 30.89
1990 27.05
1991 25.84
1992 28.70
1993 24.09
1994 25.52
1995 26.59
1996 24.26
1997 24.09
1998 19.08
1999 19.94
2000 20.58
2001 17.89
2002 20.46
2003 19.68
2004 22.07
2005 22.45
2006 24.60
2007 24.38
2008 28.96
2009 22.87
2010 24.03
2011 18.93
2012 16.20
2013 12.93
2014 13.56
2015 13.68
2016 17.44
2017 20.71
2018 19.34
2019 20.31
2020 18.87

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