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

Households and NPISHs final consumption expenditure (% of GDP) in Middle income was 50.34 as of 2020. Its highest value over the past 60 years was 70.45 in 1962, while its lowest value was 50.34 in 2020.

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
1960 62.35
1961 66.85
1962 70.45
1963 68.86
1964 67.43
1965 64.92
1966 63.50
1967 66.07
1968 65.79
1969 63.92
1970 62.59
1971 63.57
1972 63.27
1973 61.30
1974 60.15
1975 59.04
1976 58.96
1977 59.32
1978 59.84
1979 59.10
1980 59.00
1981 57.95
1982 58.99
1983 59.90
1984 61.98
1985 61.18
1986 61.73
1987 60.31
1988 60.63
1989 58.41
1990 59.42
1991 60.69
1992 59.98
1993 60.54
1994 60.79
1995 60.82
1996 61.04
1997 61.15
1998 61.38
1999 61.02
2000 59.86
2001 59.84
2002 58.98
2003 58.01
2004 56.23
2005 55.50
2006 53.91
2007 53.36
2008 52.14
2009 52.60
2010 51.47
2011 51.14
2012 51.14
2013 51.62
2014 51.78
2015 52.04
2016 52.44
2017 52.03
2018 51.23
2019 51.74
2020 50.34

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