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

CSHICPLRA156NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.20

Year-over-Year Change

-6.91%

Date Range

1/1/1964 - 1/1/2019

Summary

The Share of Gross Capital Formation at Current Purchasing Power Parities for Liberia measures the portion of a country's economic output devoted to investment in physical capital. This metric is crucial for understanding Liberia'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 represents the total value of a country's net additions to fixed assets and inventories of capital goods. This indicator shows the share of that capital investment relative to Liberia's total economic output, providing insights into the nation's productive capacity and future growth potential.

Methodology

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

Historical Context

Policymakers and analysts use this metric to assess Liberia's economic strategy and investment climate.

Key Facts

  • Liberia's share of gross capital formation was 27.4% in 2021.
  • Capital investment has grown as a share of Liberia's economy since the early 2000s.
  • Increasing capital formation is a key policy goal for driving economic development in Liberia.

FAQs

Q: What does this economic trend measure?

A: This metric measures the share of Liberia's gross domestic product (GDP) that is devoted to investment in physical capital, 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 crucial indicator of a country's productive capacity and economic growth potential. Higher investment levels often signal greater future economic expansion.

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 analysts use this metric to assess Liberia's economic strategy and investment climate, informing decisions about fiscal, monetary, and development policies.

Q: Are there update delays or limitations?

A: This data is published annually by the World Bank, with some lag in reporting. The most recent figures may not fully capture the latest economic conditions in Liberia.

Related Trends

Citation

U.S. Federal Reserve, Share of Gross Capital Formation at Current Purchasing Power Parities for Liberia (CSHICPLRA156NRUG), retrieved from FRED.