Egypt, Arab Rep. | 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
Arab Republic of Egypt
Records
63
Source
Egypt, Arab Rep. | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.01411673
1971 0.01443104
1972 0.01105538
1973 0.01242682
1974 0.2349248
1975 0.24528751
1976 0.10307656
1977 0.19939288
1978 0.05203751
1979 0.04505514
1980 0.07188785
1981 0.08283947
1982 0.0689866
1983 0.04813238
1984 0.03411768
1985 0.03888289
1986 0.02767167
1987 0.02682984
1988 0.02743743
1989 0.03555321
1990 0.04595687
1991 0.03656139
1992 0.04377689
1993 0.02481726
1994 0.01561219
1995 0.01312937
1996 0.01632923
1997 0.01535237
1998 0.04022081
1999 0.02713732
2000 0.01309126
2001 0.02385118
2002 0.02174987
2003 0.01907209
2004 0.01534004
2005 0.04867084
2006 0.06128787
2007 0.09661224
2008 0.69302341
2009 0.61916337
2010 0.21476714
2011 0.46868014
2012 0.50148097
2013 0.28431883
2014 0.18228732
2015 0.12598689
2016 0.17606333
2017 0.21384453
2018 0.07378883
2019 0
2020 0
2021 0
2022

Egypt, Arab Rep. | 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
Arab Republic of Egypt
Records
63
Source