Finland - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Finland was 24.46 as of 2020. Its highest value over the past 50 years was 37.03 in 1974, while its lowest value was 18.58 in 1993.

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
1970 31.82
1971 31.94
1972 29.42
1973 30.90
1974 37.03
1975 36.17
1976 29.23
1977 27.99
1978 24.40
1979 27.78
1980 31.25
1981 28.40
1982 28.67
1983 28.39
1984 27.23
1985 26.95
1986 26.06
1987 26.80
1988 29.10
1989 32.00
1990 30.14
1991 24.09
1992 21.07
1993 18.58
1994 19.76
1995 20.35
1996 20.24
1997 21.75
1998 23.01
1999 22.41
2000 23.86
2001 23.18
2002 22.05
2003 22.23
2004 22.87
2005 24.60
2006 24.00
2007 25.55
2008 25.25
2009 21.47
2010 22.08
2011 24.04
2012 23.39
2013 22.33
2014 21.92
2015 21.71
2016 23.27
2017 24.01
2018 25.26
2019 24.08
2020 24.46

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