Jordan - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Jordan was 11.94 as of 2020. Its highest value over the past 44 years was 46.03 in 1981, while its lowest value was 11.94 in 2020.

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
1976 34.09
1977 40.25
1978 33.08
1979 31.54
1980 37.17
1981 46.03
1982 39.44
1983 33.01
1984 29.91
1985 21.05
1986 19.84
1987 22.55
1988 22.66
1989 23.24
1990 30.80
1991 24.97
1992 33.48
1993 36.63
1994 33.30
1995 32.96
1996 30.52
1997 25.73
1998 21.82
1999 21.57
2000 22.36
2001 21.06
2002 20.10
2003 20.84
2004 27.38
2005 34.15
2006 28.34
2007 30.27
2008 31.52
2009 30.74
2010 30.85
2011 28.45
2012 24.32
2013 22.35
2014 22.23
2015 21.83
2016 20.04
2017 21.43
2018 17.50
2019 12.22
2020 11.94

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