Bahrain - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Bahrain was 32.92 as of 2019. Its highest value over the past 39 years was 46.13 in 1980, while its lowest value was 7.91 in 1999.

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
1980 46.13
1981 41.61
1982 36.28
1983 43.86
1984 42.58
1985 35.65
1986 26.63
1987 25.46
1988 20.20
1989 24.64
1990 16.43
1991 28.60
1992 29.42
1993 18.30
1994 19.63
1995 14.61
1996 14.41
1997 17.45
1998 21.42
1999 7.91
2000 16.58
2001 15.71
2002 23.35
2003 23.74
2004 20.52
2005 26.74
2006 30.39
2007 34.71
2008 34.95
2009 26.14
2010 27.29
2011 22.40
2012 28.15
2013 25.94
2014 26.84
2015 25.53
2016 29.15
2017 32.94
2018 34.87
2019 32.92

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