Guinea-Bissau - Total natural resources rents (% of GDP)

Total natural resources rents (% of GDP) in Guinea-Bissau was 8.61 as of 2019. Its highest value over the past 49 years was 32.44 in 1980, while its lowest value was 6.04 in 1971.

Definition: Total natural resources rents are the sum of oil rents, natural gas rents, coal rents (hard and soft), mineral rents, and forest rents.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

Year Value
1970 6.39
1971 6.04
1972 6.47
1973 10.38
1974 11.12
1975 13.55
1976 12.74
1977 22.07
1978 22.18
1979 23.60
1980 32.44
1981 20.14
1982 25.91
1983 18.10
1984 19.41
1985 14.40
1986 24.03
1987 17.72
1988 20.87
1989 16.57
1990 18.09
1991 17.30
1992 19.79
1993 15.97
1994 19.01
1995 26.06
1996 24.17
1997 22.87
1998 31.60
1999 19.27
2000 11.89
2001 11.03
2002 12.58
2003 17.83
2004 14.13
2005 13.28
2006 13.36
2007 16.72
2008 15.98
2009 17.20
2010 14.93
2011 13.25
2012 17.10
2013 16.78
2014 18.70
2015 19.87
2016 18.70
2017 16.08
2018 9.48
2019 8.61

Development Relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

Statistical Concept and Methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP