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

Households and NPISHs final consumption expenditure (% of GDP) in Iran was 48.77 as of 2020. Its highest value over the past 60 years was 81.84 in 1960, while its lowest value was 36.75 in 1974.

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 81.84
1961 79.83
1962 77.94
1963 75.93
1964 70.35
1965 64.12
1966 63.55
1967 63.30
1968 56.72
1969 57.95
1970 57.72
1971 55.85
1972 50.83
1973 44.47
1974 36.75
1975 45.54
1976 37.87
1977 42.13
1978 50.23
1979 52.42
1980 57.68
1981 64.09
1982 61.88
1983 62.56
1984 65.62
1985 67.01
1986 71.72
1987 68.92
1988 75.08
1989 71.54
1990 67.88
1991 62.41
1992 61.26
1993 52.43
1994 51.37
1995 50.03
1996 47.39
1997 52.40
1998 57.92
1999 52.07
2000 49.73
2001 50.22
2002 46.59
2003 44.44
2004 42.68
2005 41.20
2006 41.44
2007 41.43
2008 41.66
2009 44.50
2010 42.92
2011 43.39
2012 47.67
2013 45.57
2014 46.32
2015 50.30
2016 49.39
2017 47.62
2018 48.52
2019 49.65
2020 48.77

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