Jamaica - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Jamaica was 24.41 as of 2020. Its highest value over the past 60 years was 35.16 in 1969, while its lowest value was 12.23 in 1977.

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 29.72
1961 28.31
1962 26.72
1963 24.17
1964 26.92
1965 26.51
1966 28.02
1967 29.28
1968 34.88
1969 35.16
1970 31.54
1971 32.09
1972 27.34
1973 31.50
1974 24.32
1975 25.77
1976 18.21
1977 12.23
1978 15.05
1979 19.22
1980 15.91
1981 20.30
1982 20.87
1983 22.26
1984 23.12
1985 24.30
1986 16.94
1987 20.65
1988 23.62
1989 26.61
1990 25.88
1991 24.36
1992 29.83
1993 25.26
1994 24.23
1995 25.26
1996 25.55
1997 25.69
1998 22.60
1999 21.26
2000 23.46
2001 25.88
2002 27.34
2003 26.25
2004 26.47
2005 26.94
2006 28.42
2007 26.57
2008 24.35
2009 21.06
2010 20.21
2011 21.44
2012 19.93
2013 21.26
2014 22.47
2015 21.35
2016 21.29
2017 22.53
2018 23.31
2019 24.27
2020 24.41

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