Guyana - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Guyana was 24.78 as of 2005. Its highest value over the past 45 years was 51.75 in 1992, while its lowest value was 16.05 in 1964.

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 28.27
1961 23.98
1962 16.64
1963 16.89
1964 16.05
1965 22.23
1966 23.87
1967 25.82
1968 22.26
1969 20.82
1970 22.76
1971 18.63
1972 19.84
1973 27.22
1974 26.41
1975 33.06
1976 37.45
1977 29.07
1978 20.51
1979 30.99
1980 32.76
1981 31.37
1982 24.97
1983 21.39
1984 27.42
1985 35.79
1986 40.14
1987 31.11
1988 21.15
1989 22.24
1990 31.13
1991 39.76
1992 51.75
1993 40.43
1994 27.22
1995 33.23
1996 31.86
1997 31.89
1998 28.92
1999 25.00
2000 23.78
2001 21.57
2002 20.86
2003 20.95
2004 23.55
2005 24.78

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