Ecuador - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Ecuador was 23.12 as of 2020. Its highest value over the past 60 years was 28.47 in 2013, while its lowest value was 18.36 in 1968.

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 25.41
1961 25.43
1962 23.73
1963 23.92
1964 24.64
1965 24.36
1966 22.38
1967 22.90
1968 18.36
1969 22.48
1970 19.56
1971 22.40
1972 23.25
1973 20.53
1974 24.64
1975 20.57
1976 21.06
1977 24.49
1978 26.60
1979 22.79
1980 25.37
1981 25.83
1982 21.76
1983 20.67
1984 18.78
1985 18.95
1986 23.57
1987 25.41
1988 26.11
1989 27.09
1990 24.07
1991 22.05
1992 22.67
1993 21.08
1994 21.29
1995 19.82
1996 18.54
1997 20.31
1998 24.00
1999 19.63
2000 21.28
2001 22.35
2002 23.70
2003 19.59
2004 20.20
2005 21.64
2006 22.46
2007 22.70
2008 26.39
2009 25.64
2010 28.04
2011 28.14
2012 27.80
2013 28.47
2014 28.31
2015 26.87
2016 24.98
2017 26.28
2018 26.75
2019 25.91
2020 23.12

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