Gross Private Investment
Gross private investment is a measure of the total amount of money spent by businesses and households on capital goods such as buildings, equipment, and inventories. It is an important indicator of economic growth and is used to gauge the health of the economy. Gross private investment is calculated by subtracting the value of capital goods that have been consumed from the total value of capital goods that have been produced. It is an important component of gross domestic product (GDP).
History of Gross Private Investment
Gross private investment has been used as an economic indicator since the early 20th century. It was first used by the U.S. Department of Commerce in the 1920s to measure the level of economic activity in the country. Since then, it has been used by economists and governments around the world to measure the health of the economy. Gross private investment is an important component of GDP, as it measures the amount of money that businesses and households are spending on capital goods.
Comparison of Gross Private Investment
| Year | Gross Private Investment (in billions) |
|---|---|
| 2020 | $3,845 |
| 2019 | $3,717 |
| 2018 | $3,541 |
| 2017 | $3,403 |
Summary
Gross private investment is an important indicator of economic growth and is used to gauge the health of the economy. It is calculated by subtracting the value of capital goods that have been consumed from the total value of capital goods that have been produced. It is an important component of GDP, as it measures the amount of money that businesses and households are spending on capital goods. For more information on gross private investment, please visit the websites of the U.S. Department of Commerce, the World Bank, and the International Monetary Fund.
See Also
- Gross Domestic Product (GDP)
- Net Private Investment
- Business Investment
- Household Investment
- Capital Goods
- Consumption
- Inventories
- Economic Growth
- Economic Indicators
- International Monetary Fund (IMF)
