IBRD only - Households and NPISHs final consumption expenditure (% of GDP)

Households and NPISHs final consumption expenditure (% of GDP) in IBRD only was 49.42 as of 2020. Its highest value over the past 60 years was 71.85 in 1962, while its lowest value was 49.42 in 2020.

Definition: Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. This item also includes any statistical discrepancy in the use of resources relative to the supply of resources.

Source: World Bank national accounts data, and OECD National Accounts data files.

See also:

Year Value
1960 63.23
1961 67.79
1962 71.85
1963 70.10
1964 68.71
1965 66.07
1966 64.89
1967 67.28
1968 66.99
1969 65.24
1970 64.53
1971 64.68
1972 64.42
1973 62.50
1974 61.11
1975 60.55
1976 60.27
1977 60.46
1978 61.09
1979 60.28
1980 60.52
1981 62.55
1982 63.04
1983 62.62
1984 62.89
1985 61.56
1986 62.52
1987 60.80
1988 61.06
1989 58.82
1990 59.87
1991 60.76
1992 59.89
1993 60.36
1994 60.59
1995 60.34
1996 60.55
1997 60.52
1998 60.81
1999 60.49
2000 59.42
2001 59.22
2002 58.35
2003 57.36
2004 55.61
2005 54.76
2006 53.29
2007 52.50
2008 51.50
2009 52.03
2010 50.80
2011 50.47
2012 50.65
2013 50.93
2014 51.31
2015 50.92
2016 51.34
2017 51.03
2018 50.25
2019 50.80
2020 49.42

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. Household final consumption expenditure is often estimated as a residual, by subtracting all other known expenditures from GDP. The resulting aggregate may incorporate fairly large discrepancies. When household consumption is calculated separately, many of the estimates are based on household surveys, which tend to be one-year studies with limited coverage. Thus the estimates quickly become outdated and must be supplemented by estimates using price- and quantity-based statistical procedures. Complicating the issue, in many developing countries the distinction between cash outlays for personal business and those for household use may be blurred. Informal economic activities pose a particular measurement problem, especially in developing countries, where much economic activity is unrecorded. A complete picture of the economy requires estimating household outputs produced for home use, sales in informal markets, barter exchanges, and illicit or deliberately unreported activities. The consistency and completeness of such estimates depend on the skill and methods of the compiling statisticians.

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