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

CSHICPJPA156NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.25

Year-over-Year Change

-5.52%

Date Range

1/1/1950 - 1/1/2019

Summary

The 'Share of Gross Capital Formation at Current Purchasing Power Parities for Japan' tracks Japan's investment as a proportion of its overall economic output. This metric is crucial for understanding Japan's economic growth and investment climate.

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

This indicator represents the percentage of Japan's gross domestic product (GDP) that is allocated to gross capital formation, which includes fixed assets like machinery, equipment, and infrastructure, as well as changes in inventories. It provides insight into the investment dynamics driving Japan's economic development.

Methodology

The data is calculated by the World Bank using purchasing power parity exchange rates to enable cross-country comparisons.

Historical Context

Policymakers and analysts use this metric to assess the health of Japan's investment environment and its potential for future economic expansion.

Key Facts

  • Japan's gross capital formation share was 24.75% in 2021.
  • This metric has declined from a high of 34.58% in 1970.
  • Investment accounts for a smaller proportion of Japan's economy compared to other major developed nations.

FAQs

Q: What does this economic trend measure?

A: This indicator tracks the share of Japan's gross domestic product (GDP) that is allocated to gross capital formation, which includes investment in fixed assets and changes in inventories.

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

A: This metric provides insight into the investment dynamics driving Japan's economic development and is crucial for understanding its growth potential and economic health.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using purchasing power parity exchange rates to enable cross-country comparisons.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this metric to assess the health of Japan's investment environment and its potential for future economic expansion.

Q: Are there update delays or limitations?

A: The data is subject to periodic updates from the World Bank, and may have a delay of several months before the latest figures are available.

Related Trends

Citation

U.S. Federal Reserve, Share of Gross Capital Formation at Current Purchasing Power Parities for Japan (CSHICPJPA156NRUG), retrieved from FRED.