Honduras - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Honduras was 18.72 as of 2020. Its highest value over the past 60 years was 36.07 in 2008, while its lowest value was 12.18 in 1961.

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 13.90
1961 12.18
1962 14.89
1963 15.96
1964 14.62
1965 14.62
1966 16.04
1967 19.65
1968 18.50
1969 19.37
1970 20.89
1971 17.10
1972 15.94
1973 19.07
1974 26.20
1975 18.95
1976 19.21
1977 23.06
1978 24.35
1979 24.55
1980 22.70
1981 19.31
1982 12.93
1983 12.69
1984 15.96
1985 15.88
1986 12.70
1987 15.96
1988 19.24
1989 17.55
1990 21.06
1991 22.60
1992 23.80
1993 30.76
1994 34.49
1995 28.93
1996 28.53
1997 29.49
1998 28.35
1999 31.78
2000 28.29
2001 26.00
2002 24.26
2003 25.28
2004 29.67
2005 27.62
2006 28.34
2007 33.67
2008 36.07
2009 20.60
2010 21.88
2011 26.00
2012 24.56
2013 21.76
2014 22.18
2015 25.12
2016 23.38
2017 24.82
2018 26.57
2019 22.73
2020 18.72

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