Algeria | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
People's Democratic Republic of Algeria
Records
63
Source
Algeria | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.17141248
1971 0.18291466
1972 0.15205299
1973 0.15809171
1974 0.32681627
1975 0.30562027
1976 0.17438127
1977 0.28505442
1978 0.06580294
1979 0.06058378
1980 0.07778737
1981 0.07712455
1982 0.09612434
1983 0.06745338
1984 0.05356503
1985 0.04626058
1986 0.03175817
1987 0.02472088
1988 0.04980414
1989 0.06288931
1990 0.04533151
1991 0.03826102
1992 0.04621787
1993 0.02965848
1994 0.02553015
1995 0.02324192
1996 0.02407306
1997 0.01670299
1998 0.04312251
1999 0.02594868
2000 0.02160857
2001 0.02099136
2002 0.01732751
2003 0.01083108
2004 0.01436928
2005 0.04886889
2006 0.07241226
2007 0.13037886
2008 0.33427785
2009 0.17144281
2010 0.15354557
2011 0.15558416
2012 0.14294745
2013 0.07999405
2014 0.05455362
2015 0.05641004
2016 0.05078468
2017 0.04078372
2018 0.02651327
2019 0.00290129
2020 0.00201
2021 0.00378677
2022

Algeria | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
People's Democratic Republic of Algeria
Records
63
Source