Hong Kong SAR, China - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Hong Kong SAR, China was 18.95 as of 2020. Its highest value over the past 60 years was 36.25 in 1964, while its lowest value was 16.36 in 1969.

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 27.69
1961 23.98
1962 28.44
1963 33.49
1964 36.25
1965 34.90
1966 27.64
1967 20.11
1968 16.62
1969 16.36
1970 20.41
1971 24.34
1972 23.42
1973 22.88
1974 24.18
1975 22.95
1976 25.38
1977 26.52
1978 28.73
1979 32.64
1980 34.85
1981 34.94
1982 30.98
1983 26.67
1984 24.42
1985 21.50
1986 23.43
1987 26.07
1988 28.35
1989 26.52
1990 27.17
1991 26.92
1992 28.18
1993 27.25
1994 31.38
1995 34.29
1996 31.80
1997 34.20
1998 29.00
1999 24.98
2000 27.58
2001 25.49
2002 23.18
2003 22.38
2004 22.36
2005 21.06
2006 22.29
2007 21.40
2008 21.04
2009 21.85
2010 23.89
2011 24.14
2012 25.22
2013 24.03
2014 23.82
2015 21.54
2016 21.51
2017 22.07
2018 22.00
2019 18.19
2020 18.95

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