Lower middle income - Households and NPISHs final consumption expenditure (% of GDP)

Households and NPISHs final consumption expenditure (% of GDP) in Lower middle income was 64.18 as of 2020. Its highest value over the past 53 years was 73.04 in 1967, while its lowest value was 54.99 in 1981.

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
1967 73.04
1968 70.13
1969 68.82
1970 67.01
1971 69.05
1972 68.11
1973 65.36
1974 60.91
1975 60.16
1976 57.49
1977 59.68
1978 62.00
1979 60.45
1980 61.27
1981 54.99
1982 57.02
1983 60.18
1984 63.67
1985 64.81
1986 65.84
1987 63.71
1988 64.91
1989 63.68
1990 63.36
1991 63.32
1992 63.39
1993 64.39
1994 64.32
1995 64.63
1996 64.80
1997 64.98
1998 66.47
1999 66.57
2000 63.87
2001 65.04
2002 64.91
2003 63.71
2004 61.21
2005 60.24
2006 58.59
2007 59.79
2008 59.51
2009 60.60
2010 59.04
2011 59.23
2012 59.78
2013 61.80
2014 62.13
2015 63.99
2016 64.14
2017 63.16
2018 63.70
2019 64.35
2020 64.18

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