Mexico - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Mexico was 19.31 as of 2020. Its highest value over the past 60 years was 25.95 in 1979, while its lowest value was 16.45 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 18.37
1961 17.56
1962 16.45
1963 18.37
1964 18.86
1965 20.26
1966 19.46
1967 20.16
1968 19.39
1969 19.66
1970 22.74
1971 20.24
1972 20.31
1973 21.38
1974 23.17
1975 23.69
1976 22.29
1977 22.85
1978 23.61
1979 25.95
1980 25.73
1981 25.94
1982 21.56
1983 19.78
1984 18.93
1985 20.01
1986 17.83
1987 18.31
1988 22.75
1989 23.11
1990 23.27
1991 23.43
1992 23.32
1993 23.02
1994 24.92
1995 20.97
1996 21.57
1997 22.60
1998 23.69
1999 22.58
2000 22.96
2001 20.84
2002 20.71
2003 21.10
2004 22.12
2005 21.64
2006 22.82
2007 23.12
2008 24.11
2009 22.89
2010 22.79
2011 23.28
2012 23.89
2013 22.49
2014 21.87
2015 23.31
2016 23.62
2017 22.90
2018 22.71
2019 21.17
2020 19.31

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