Paraguay - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Paraguay was 20.16 as of 2020. Its highest value over the past 58 years was 28.83 in 1981, while its lowest value was 11.17 in 1963.

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
1962 12.54
1963 11.17
1964 11.86
1965 15.08
1966 15.81
1967 16.54
1968 15.86
1969 16.04
1970 14.73
1971 14.56
1972 15.06
1973 19.02
1974 20.99
1975 24.10
1976 24.63
1977 24.68
1978 27.20
1979 28.56
1980 28.76
1981 28.83
1982 25.63
1983 21.23
1984 22.30
1985 20.77
1986 22.90
1987 22.44
1988 20.32
1989 18.84
1990 17.81
1991 19.11
1992 18.49
1993 19.67
1994 24.41
1995 22.02
1996 22.13
1997 22.92
1998 20.11
1999 18.97
2000 17.34
2001 17.97
2002 18.10
2003 20.63
2004 20.07
2005 20.90
2006 21.95
2007 21.32
2008 22.25
2009 18.92
2010 23.83
2011 24.66
2012 21.26
2013 22.02
2014 22.66
2015 21.88
2016 19.81
2017 20.60
2018 22.78
2019 21.70
2020 20.16

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