Private investment as a percentage of GDP

Private investment as a percentage of Gross Domestic Product (GDP) is based on nominal private fixed capital formation financed domestically or externally, and nominal GDP at market prices. Private investment, here is defined as private Gross Fixed Capital Formation (GFCF) from the National Income Accounts (NIA). It comprises gross outlays (in contrast to net outlays which subtract depreciation of the existing capital stock). Investment goods and services are those that are not fully consumed in a year (machinery, equipment, buildings, etc.). They do not include financial assets. The term fixed indicates that changes in inventories are excluded. For the purposes of the data used here, the investment of the private sector includes those of private firms, households, and nonprofit agencies and, depending on the country, may also include the investments of state-owned enterprises. Private investment data are usually updated on a quarterly or yearly basis and measured by most statistical offices, leading to large and comparable country coverage.

GDP at market prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for the depletion and degradation of natural resources.