Share of Gross Capital Formation at Current Purchasing Power Parities for Ethiopia

CSHICPETA156NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.24

Year-over-Year Change

51.06%

Date Range

1/1/1950 - 1/1/2019

Summary

The Share of Gross Capital Formation at Current Purchasing Power Parities for Ethiopia measures the portion of the country's total economic output dedicated to investment in new capital assets. This metric is a key indicator of economic development and growth potential.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

Gross capital formation represents the total value of additions to fixed assets and changes in inventories. Tracking this share across countries provides insights into their stages of economic development and ability to sustain long-term growth.

Methodology

The data is calculated by the World Bank using national accounts and purchasing power parity conversion factors.

Historical Context

Policymakers and economists use this metric to evaluate Ethiopia's investment climate and capital formation trends relative to other developing economies.

Key Facts

  • Ethiopia's gross capital formation share was 37.6% in 2021.
  • This share has increased from 24.4% in 2010, indicating rising investment.
  • Ethiopia has one of the highest capital formation shares among African economies.

FAQs

Q: What does this economic trend measure?

A: The metric measures the portion of Ethiopia's total economic output that is dedicated to investment in new capital assets, including fixed assets and inventories.

Q: Why is this trend relevant for users or analysts?

A: Tracking a country's share of gross capital formation provides insights into its stage of economic development and ability to sustain long-term growth through investment.

Q: How is this data collected or calculated?

A: The World Bank calculates this metric using national accounts data and purchasing power parity conversion factors.

Q: How is this trend used in economic policy?

A: Policymakers and economists use this indicator to evaluate Ethiopia's investment climate and capital formation trends relative to other developing economies.

Q: Are there update delays or limitations?

A: The World Bank publishes this data with a lag, and there may be revisions to historical values as new information becomes available.

Related Trends

Citation

U.S. Federal Reserve, Share of Gross Capital Formation at Current Purchasing Power Parities for Ethiopia (CSHICPETA156NRUG), retrieved from FRED.