Guyana | 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
Co-operative Republic of Guyana
Records
63
Source
Guyana | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 15.04735044
1971 13.47001669
1972 11.18211485
1973 10.22776024
1974 15.40213507
1975 13.16744578
1976 13.78452862
1977 18.30811429
1978 16.95415735
1979 14.84748727
1980 13.18301105
1981 12.03795861
1982 12.20610152
1983 6.74791672
1984 16.98361585
1985 13.88461709
1986 13.14761707
1987 16.51155635
1988 9.09180988
1989 9.02342032
1990 9.19984608
1991 12.32613842
1992 8.40329385
1993 15.46994552
1994 16.25687762
1995 12.76623752
1996 13.56735738
1997 9.81296185
1998 5.50067994
1999 6.13754274
2000 7.51547547
2001 4.42291563
2002 4.51138033
2003 7.4422082
2004 10.98424691
2005 10.20172507
2006 3.86175134
2007 5.09699621
2008 4.96131051
2009 5.63786957
2010 6.67238486
2011 9.77962816
2012 10.63125677
2013 6.92278944
2014 4.09918701
2015 3.165508
2016 10.56985051
2017 8.21237985
2018 2.27853656
2019 2.42171825
2020 2.65547682
2021 9.37777502
2022

Guyana | 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
Co-operative Republic of Guyana
Records
63
Source