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

CSHICPGTA156NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.16

Year-over-Year Change

-22.46%

Date Range

1/1/1950 - 1/1/2019

Summary

The Share of Gross Capital Formation at Current Purchasing Power Parities for Guatemala measures the proportion of a country's total economic output that is invested in new capital assets. This metric is crucial for understanding a nation's economic development and growth trajectory.

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 refers to the additions to the fixed assets of the economy plus net changes in the level of inventories. This indicator provides insight into a country's level of investment and its potential for future productivity gains.

Methodology

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

Historical Context

Policymakers and analysts use this metric to evaluate Guatemala's economic performance and competitiveness relative to other countries.

Key Facts

  • Guatemala's share of gross capital formation was 15.3% in 2020.
  • Capital investment as a percentage of GDP has fluctuated between 15-20% in the past decade.
  • The metric provides insight into Guatemala's economic development and potential for future growth.

FAQs

Q: What does this economic trend measure?

A: This indicator measures the proportion of Guatemala's total economic output that is invested in new capital assets, such as machinery, equipment, and infrastructure.

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

A: The share of gross capital formation is a key metric for understanding a country's economic development and growth potential, as investment in productive assets is crucial for increasing productivity and competitiveness.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using national accounts and purchasing power parity (PPP) conversion factors.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this metric to evaluate Guatemala's economic performance and competitiveness relative to other countries, informing decisions about investment, trade, and economic development strategies.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, so the most recent year may not be available. Additionally, the metric may not capture all forms of investment or economic activity in Guatemala.

Related Trends

Citation

U.S. Federal Reserve, Share of Gross Capital Formation at Current Purchasing Power Parities for Guatemala (CSHICPGTA156NRUG), retrieved from FRED.