Guatemala - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Guatemala was 12.93 as of 2020. Its highest value over the past 60 years was 21.62 in 1978, while its lowest value was 8.78 in 1962.

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 10.30
1961 8.92
1962 8.78
1963 10.56
1964 12.82
1965 13.31
1966 10.76
1967 12.94
1968 15.14
1969 11.41
1970 12.83
1971 14.38
1972 12.13
1973 13.69
1974 18.60
1975 16.09
1976 21.41
1977 20.04
1978 21.62
1979 18.75
1980 15.87
1981 17.03
1982 14.14
1983 11.07
1984 11.57
1985 11.50
1986 10.33
1987 13.91
1988 13.70
1989 13.52
1990 13.60
1991 14.30
1992 18.33
1993 17.25
1994 15.68
1995 15.06
1996 12.69
1997 13.68
1998 17.40
1999 17.35
2000 17.84
2001 19.98
2002 20.89
2003 20.62
2004 21.19
2005 20.05
2006 21.17
2007 21.17
2008 16.67
2009 13.27
2010 14.16
2011 15.48
2012 15.19
2013 15.84
2014 15.07
2015 14.83
2016 13.86
2017 13.60
2018 13.80
2019 14.31
2020 12.93

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