Egypt - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Egypt was 13.79 as of 2020. Its highest value over the past 60 years was 33.12 in 1988, while its lowest value was 10.75 in 1969.

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 15.44
1961 16.07
1962 17.86
1963 18.47
1964 19.40
1965 16.88
1966 16.39
1967 14.07
1968 13.01
1969 10.75
1970 14.60
1971 12.87
1972 11.25
1973 13.20
1974 18.89
1975 25.95
1976 21.63
1977 23.99
1978 28.60
1979 32.19
1980 27.50
1981 32.10
1982 28.95
1983 30.83
1984 30.38
1985 29.76
1986 29.48
1987 26.02
1988 33.12
1989 31.69
1990 28.91
1991 23.73
1992 19.48
1993 19.85
1994 20.63
1995 20.15
1996 18.13
1997 17.56
1998 21.50
1999 21.62
2000 19.55
2001 18.26
2002 18.00
2003 16.89
2004 16.94
2005 17.98
2006 18.73
2007 20.85
2008 22.39
2009 19.19
2010 19.50
2011 17.10
2012 16.03
2013 14.21
2014 13.64
2015 14.29
2016 15.04
2017 15.27
2018 16.66
2019 18.21
2020 13.79

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