Upper middle income - Households and NPISHs final consumption expenditure (% of GDP)

Households and NPISHs final consumption expenditure (% of GDP) in Upper middle income was 45.92 as of 2020. Its highest value over the past 60 years was 69.35 in 1962, while its lowest value was 45.92 in 2020.

Definition: Household final consumption expenditure (formerly private consumption) 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. This item also includes any statistical discrepancy in the use of resources relative to the supply of resources.

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

See also:

Year Value
1960 57.28
1961 64.58
1962 69.35
1963 67.32
1964 64.84
1965 61.42
1966 60.88
1967 63.83
1968 64.90
1969 62.69
1970 61.59
1971 62.04
1972 62.01
1973 60.31
1974 60.77
1975 59.50
1976 60.84
1977 60.39
1978 60.05
1979 59.60
1980 59.00
1981 61.23
1982 61.58
1983 60.67
1984 61.77
1985 59.41
1986 59.41
1987 58.88
1988 58.64
1989 56.01
1990 57.84
1991 59.62
1992 58.63
1993 59.12
1994 59.51
1995 59.44
1996 59.66
1997 59.78
1998 59.68
1999 58.99
2000 58.42
2001 57.97
2002 56.75
2003 55.83
2004 54.38
2005 53.78
2006 52.21
2007 51.07
2008 49.68
2009 49.80
2010 48.83
2011 48.45
2012 48.32
2013 48.47
2014 48.55
2015 48.16
2016 48.46
2017 48.34
2018 47.35
2019 47.68
2020 45.92

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. 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.

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