Zimbabwe - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Zimbabwe was 7.45 as of 2020. Its highest value over the past 60 years was 24.74 in 1974, while its lowest value was 1.53 in 2005.

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 20.43
1961 20.05
1962 15.60
1963 11.51
1964 11.74
1965 13.65
1966 14.95
1967 17.43
1968 21.12
1969 16.89
1970 18.34
1971 20.17
1972 23.70
1973 22.88
1974 24.74
1975 23.63
1976 16.11
1977 17.19
1978 10.70
1979 11.41
1980 16.94
1981 20.82
1982 19.05
1983 14.31
1984 17.04
1985 17.82
1986 18.06
1987 14.94
1988 18.70
1989 15.04
1990 17.38
1991 19.10
1992 20.24
1993 22.77
1994 23.73
1995 19.66
1996 18.54
1997 18.13
1998 20.75
1999 14.40
2000 13.57
2001 10.27
2002 5.00
2003 8.00
2004 4.51
2005 1.53
2006 1.57
2007 7.11
2008 5.13
2009 12.75
2010 18.76
2011 17.40
2012 9.86
2013 9.21
2014 9.64
2015 10.04
2016 9.86
2017 9.70
2018 9.69
2019 7.41
2020 7.45

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