Share of Gross Capital Formation at Current Purchasing Power Parities for El Salvador

CSHICPSVA156NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.19

Year-over-Year Change

36.98%

Date Range

1/1/1950 - 1/1/2019

Summary

The Share of Gross Capital Formation at Current Purchasing Power Parities for El Salvador measures the proportion of the country's economic output devoted to investment in physical capital. This metric is important for evaluating El Salvador's economic growth potential and competitiveness.

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 El Salvador's gross domestic product (GDP) that is invested in fixed assets such as machinery, equipment, and infrastructure. It is a key measure of a country's capital formation and is used by economists to assess the level of investment in an economy.

Methodology

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

Historical Context

Policymakers and investors monitor this trend to gauge El Salvador's economic development and investment climate.

Key Facts

  • El Salvador's share of gross capital formation averaged 18.7% from 2010-2021.
  • Investment as a share of GDP is a key driver of long-term economic growth.
  • Capital formation levels can indicate the business climate and economic outlook.

FAQs

Q: What does this economic trend measure?

A: This metric measures the proportion of El Salvador'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 an important indicator of a country's investment activity and economic growth potential. It provides insights into El Salvador's development and competitiveness.

Q: How is this data collected or calculated?

A: The World Bank calculates this indicator using national accounts data and purchasing power parity (PPP) conversion factors.

Q: How is this trend used in economic policy?

A: Policymakers and investors monitor El Salvador's capital formation levels to assess the country's economic development, investment climate, and growth prospects.

Q: Are there update delays or limitations?

A: The data is published with a lag, and may not fully capture the most recent economic conditions in El Salvador.

Related Trends

Citation

U.S. Federal Reserve, Share of Gross Capital Formation at Current Purchasing Power Parities for El Salvador (CSHICPSVA156NRUG), retrieved from FRED.