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

CSHICPPKA156NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.11

Year-over-Year Change

-20.07%

Date Range

1/1/1950 - 1/1/2019

Summary

The Share of Gross Capital Formation at Current Purchasing Power Parities for Pakistan measures the proportion of a country's total economic output that is devoted to investment in physical capital. This metric is crucial for understanding a nation's 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

This economic indicator represents the percentage of Pakistan's gross domestic product (GDP) that is allocated to the acquisition of fixed assets, such as machinery, equipment, and infrastructure. It is an important measure of a country's capacity to expand its productive capabilities and enhance its long-term economic prospects.

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 trend to assess Pakistan's investment climate and its ability to sustain economic growth over time.

Key Facts

  • Pakistan's share of gross capital formation was 15.4% in 2020.
  • The trend has fluctuated between 12-17% over the past decade.
  • Investment as a share of GDP is a key driver of long-term economic development.

FAQs

Q: What does this economic trend measure?

A: This trend measures the proportion of Pakistan's total economic output 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: This metric is crucial for understanding a nation's economic development and growth potential, as investment in physical capital is a key driver of long-term economic expansion.

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 trend to assess Pakistan's investment climate and its ability to sustain economic growth over time, which informs policy decisions aimed at promoting investment and development.

Q: Are there update delays or limitations?

A: The data is subject to the release schedule and methodological updates of the World Bank, which may result in occasional delays or revisions to the historical series.

Related Trends

Citation

U.S. Federal Reserve, Share of Gross Capital Formation at Current Purchasing Power Parities for Pakistan (CSHICPPKA156NRUG), retrieved from FRED.