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

CSHICPMWA156NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.13

Year-over-Year Change

-52.45%

Date Range

1/1/1954 - 1/1/2019

Summary

The Share of Gross Capital Formation at Current Purchasing Power Parities for Malawi measures the proportion of a country's total economic output that is invested in physical capital. This metric is important for analyzing a nation's economic development and investment trends.

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, also known as investment, represents the acquisition of produced assets, including fixed assets and changes in inventories. This indicator shows Malawi's share of total output dedicated to capital investment, which is a key driver of long-term economic growth and productivity.

Methodology

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

Historical Context

Policymakers and economists use this metric to assess the investment climate and identify opportunities for boosting productivity and economic development.

Key Facts

  • Malawi's share of gross capital formation was 16.4% in 2020.
  • Investment has increased from 13.5% of GDP in 2000 to 16.4% in 2020.
  • Malawi's investment rate lags behind the regional average for Sub-Saharan Africa.

FAQs

Q: What does this economic trend measure?

A: This indicator measures the share of Malawi's gross domestic product (GDP) that is invested 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 key metric for assessing a country's investment climate and potential for long-term economic growth. Higher investment rates are typically associated with rising productivity and incomes.

Q: How is this data collected or calculated?

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

Q: How is this trend used in economic policy?

A: Policymakers and economists use this metric to evaluate the investment environment, identify opportunities for boosting productivity, and formulate policies to promote economic development.

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 for several months. Additionally, the PPP-based measurement may not fully capture certain investment activities.

Related Trends

Citation

U.S. Federal Reserve, Share of Gross Capital Formation at Current Purchasing Power Parities for Malawi (CSHICPMWA156NRUG), retrieved from FRED.