France - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in France was 23.81 as of 2020. Its highest value over the past 60 years was 29.12 in 1974, while its lowest value was 19.45 in 1997.

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 25.58
1961 25.27
1962 25.98
1963 26.01
1964 27.49
1965 27.18
1966 27.97
1967 27.98
1968 27.51
1969 28.41
1970 28.19
1971 27.39
1972 27.65
1973 28.23
1974 29.12
1975 24.89
1976 26.46
1977 25.58
1978 24.31
1979 24.86
1980 25.75
1981 23.52
1982 23.80
1983 21.75
1984 21.23
1985 21.17
1986 21.76
1987 22.26
1988 23.34
1989 24.27
1990 24.41
1991 23.60
1992 21.96
1993 19.54
1994 20.32
1995 20.51
1996 19.62
1997 19.45
1998 20.68
1999 21.36
2000 22.49
2001 22.16
2002 21.32
2003 21.19
2004 21.89
2005 22.45
2006 23.24
2007 24.16
2008 24.13
2009 21.33
2010 21.95
2011 23.22
2012 22.63
2013 22.29
2014 22.71
2015 22.71
2016 22.61
2017 23.44
2018 23.86
2019 24.36
2020 23.81

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