Madagascar - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Madagascar was 18.24 as of 2020. Its highest value over the past 60 years was 46.59 in 1980, while its lowest value was 5.04 in 1962.

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 6.96
1961 5.84
1962 5.04
1963 6.76
1964 7.07
1965 6.50
1966 8.53
1967 9.26
1968 10.32
1969 10.78
1970 9.91
1971 11.22
1972 8.82
1973 9.10
1974 8.66
1975 8.14
1976 8.13
1977 8.08
1978 9.59
1979 16.09
1980 46.59
1981 35.69
1982 26.35
1983 26.00
1984 26.82
1985 18.76
1986 20.51
1987 25.00
1988 17.60
1989 40.75
1990 35.96
1991 30.67
1992 36.09
1993 37.88
1994 32.87
1995 8.87
1996 9.53
1997 10.15
1998 12.25
1999 12.29
2000 11.93
2001 14.51
2002 10.97
2003 13.72
2004 21.15
2005 19.33
2006 20.31
2007 26.52
2008 38.75
2009 37.22
2010 27.03
2011 23.35
2012 20.17
2013 16.51
2014 16.49
2015 15.99
2016 16.37
2017 15.81
2018 20.70
2019 22.68
2020 18.24

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