Puerto Rico - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Puerto Rico was 11.51 as of 2020. Its highest value over the past 60 years was 30.24 in 1971, while its lowest value was 7.79 in 2017.

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 23.46
1963 24.25
1964 25.71
1965 29.33
1966 26.90
1967 26.86
1968 27.17
1969 27.73
1970 28.64
1971 30.24
1972 29.98
1973 25.60
1974 23.41
1975 27.05
1976 22.01
1977 15.10
1978 16.61
1979 16.40
1980 17.14
1981 14.34
1982 9.04
1983 10.11
1984 13.75
1985 12.32
1986 10.26
1987 13.63
1988 15.35
1989 17.00
1990 16.95
1991 15.60
1992 15.45
1993 16.05
1994 16.33
1995 16.87
1996 17.46
1997 18.57
1998 16.92
1999 20.70
2000 19.71
2001 17.57
2002 16.19
2003 15.53
2004 15.32
2005 14.60
2006 13.99
2007 13.39
2008 12.15
2009 10.43
2010 9.16
2011 10.07
2012 10.33
2013 9.53
2014 8.94
2015 8.60
2016 8.08
2017 7.79
2018 15.08
2019 14.31
2020 11.51

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