World - Household final consumption expenditure per capita (constant 2010 US$)

The latest value for Household final consumption expenditure per capita (constant 2010 US$) in World was 5,866 as of 2020. Over the past 50 years, the value for this indicator has fluctuated between 6,261 in 2019 and 2,840 in 1970.

Definition: Household final consumption expenditure per capita (private consumption per capita) is calculated using private consumption in constant 2010 prices and World Bank population estimates. Household final consumption expenditure 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. Data are in constant 2010 U.S. dollars.

Source: World Bank national accounts data, and OECD National Accounts data files.

See also:

Year Value
1970 2,840
1971 2,908
1972 3,019
1973 3,122
1974 3,102
1975 3,119
1976 3,216
1977 3,277
1978 3,350
1979 3,415
1980 3,415
1981 3,412
1982 3,402
1983 3,450
1984 3,513
1985 3,577
1986 3,644
1987 3,700
1988 3,788
1989 3,848
1990 3,905
1991 3,899
1992 3,947
1993 3,965
1994 4,029
1995 4,082
1996 4,174
1997 4,253
1998 4,327
1999 4,437
2000 4,566
2001 4,639
2002 4,702
2003 4,775
2004 4,896
2005 5,026
2006 5,141
2007 5,291
2008 5,313
2009 5,246
2010 5,348
2011 5,451
2012 5,520
2013 5,609
2014 5,704
2015 5,803
2016 5,905
2017 6,039
2018 6,171
2019 6,261
2020 5,866

Development Relevance: An economy's growth is measured by the change in the volume of its output or in the real incomes of its residents. The 2008 United Nations System of National Accounts (2008 SNA) offers three plausible indicators for calculating growth: the volume of gross domestic product (GDP), real gross domestic income, and real gross national income. The volume of GDP is the sum of value added, measured at constant prices, by households, government, and industries operating in the economy. GDP accounts for all domestic production, regardless of whether the income accrues to domestic or foreign institutions.

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. Measures of growth in consumption and capital formation are subject to two kinds of inaccuracy. The first stems from the difficulty of measuring expenditures at current price levels. The second arises in deflating current price data to measure volume growth, where results depend on the relevance and reliability of the price indexes and weights used. Measuring price changes is more difficult for investment goods than for consumption goods because of the one-time nature of many investments and because the rate of technological progress in capital goods makes capturing change in quality difficult. (An example is computers - prices have fallen as quality has improved.)

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. Deflators for household consumption are usually calculated on the basis of the consumer price index.

Aggregation method: Weighted average

Base Period: 2010

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts