World - Household final consumption expenditure (constant 2010 US$)

The latest value for Household final consumption expenditure (constant 2010 US$) in World was 45,671,900,000,000 as of 2020. Over the past 50 years, the value for this indicator has fluctuated between 48,086,700,000,000 in 2019 and 10,482,700,000,000 in 1970.

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

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

See also:

Year Value
1970 10,482,700,000,000
1971 10,961,700,000,000
1972 11,613,000,000,000
1973 12,246,100,000,000
1974 12,403,600,000,000
1975 12,702,800,000,000
1976 13,330,300,000,000
1977 13,822,900,000,000
1978 14,380,000,000,000
1979 14,914,600,000,000
1980 15,177,000,000,000
1981 15,422,100,000,000
1982 15,647,200,000,000
1983 16,150,500,000,000
1984 16,731,500,000,000
1985 17,339,900,000,000
1986 17,976,100,000,000
1987 18,585,800,000,000
1988 19,365,800,000,000
1989 19,998,000,000,000
1990 20,649,300,000,000
1991 20,971,000,000,000
1992 21,568,200,000,000
1993 22,013,100,000,000
1994 22,704,500,000,000
1995 23,347,500,000,000
1996 24,220,500,000,000
1997 25,029,200,000,000
1998 25,815,300,000,000
1999 26,833,000,000,000
2000 27,987,000,000,000
2001 28,783,100,000,000
2002 29,544,000,000,000
2003 30,382,000,000,000
2004 31,531,900,000,000
2005 32,773,300,000,000
2006 33,924,200,000,000
2007 35,347,900,000,000
2008 35,949,700,000,000
2009 35,920,100,000,000
2010 37,081,400,000,000
2011 38,248,700,000,000
2012 39,177,600,000,000
2013 40,255,400,000,000
2014 41,403,600,000,000
2015 42,620,400,000,000
2016 43,875,000,000,000
2017 45,386,200,000,000
2018 46,899,700,000,000
2019 48,086,700,000,000
2020 45,671,900,000,000

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. 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. 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.)

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. Deflators for household consumption are usually calculated on the basis of the consumer price index.

Aggregation method: Gap-filled total

Base Period: 2010

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts