Benin - Gross capital formation (constant 2010 US$)

The latest value for Gross capital formation (constant 2010 US$) in Benin was 3,885,897,000 as of 2020. Over the past 60 years, the value for this indicator has fluctuated between 3,885,897,000 in 2020 and 114,874,200 in 1965.

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. Data are in constant 2010 U.S. dollars.

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

See also:

Year Value
1960 127,129,500
1961 126,014,900
1962 123,785,000
1963 134,936,300
1964 121,554,300
1965 114,874,200
1966 119,336,100
1967 161,716,300
1968 176,215,900
1969 185,138,000
1970 172,868,600
1971 167,658,100
1972 242,857,800
1973 245,987,500
1974 360,351,100
1975 360,635,600
1976 367,463,900
1977 338,161,200
1978 319,290,300
1979 457,077,300
1980 624,734,500
1981 710,935,600
1982 1,017,313,000
1983 595,778,900
1984 439,796,000
1985 319,574,900
1986 473,275,200
1987 439,035,100
1988 461,861,900
1989 354,245,000
1990 517,954,100
1991 566,456,700
1992 552,704,800
1993 584,761,900
1994 589,042,500
1995 813,660,400
1996 664,939,600
1997 776,064,200
1998 728,363,800
1999 856,219,600
2000 806,321,900
2001 987,903,000
2002 868,154,900
2003 923,920,700
2004 985,716,600
2005 762,437,900
2006 842,132,700
2007 1,102,751,000
2008 1,005,786,000
2009 1,124,477,000
2010 1,221,978,000
2011 1,284,464,000
2012 1,348,488,000
2013 1,896,897,000
2014 2,072,024,000
2015 2,360,978,000
2016 2,398,016,000
2017 2,991,320,000
2018 3,467,449,000
2019 3,814,903,000
2020 3,885,897,000

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. 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. 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.) Several countries estimate capital formation from the supply side, identifying capital goods entering an economy directly from detailed production and international trade statistics. This means that the price indexes used in deflating production and international trade, reflecting delivered or offered prices, will determine the deflator for capital formation expenditures on the demand side.

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: Gap-filled total

Base Period: 2010

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts