Middle East & North Africa | 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
Middle East & North Africa
Records
63
Source
Middle East & North Africa | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.078833
1971 0.05398681
1972 0.03655137
1973 0.08389591
1974 0.67848149
1975 0.52222366
1976 0.16373893
1977 0.36699133
1978 0.07004238
1979 0.08023524
1980 0.08885947
1981 0.10603602
1982 0.08481315
1983 0.07896683
1984 0.04860076
1985 0.06696012
1986 0.03283053
1987 0.01978201
1988 0.16918984
1989 0.06351105
1990 0.03402577
1991 0.01944052
1992 0.02352503
1993 0.03229405
1994 0.05176534
1995 0.04972427
1996 0.02825107
1997 0.02725108
1998 0.02663515
1999 0.01957527
2000 0.01664897
2001 0.01259004
2002 0.01285001
2003 0.0115747
2004 0.05244472
2005 0.08993048
2006 0.16001172
2007 0.24391272
2008 0.56710991
2009 0.40642874
2010 0.41053185
2011 0.54665218
2012 0.4236882
2013 0.3419398
2014 0.24299787
2015 0.18116919
2016 0.19520688
2017 0.23190057
2018 0.19343206
2019 0.08701281
2020 0.13062055
2021 0.38721884
2022

Middle East & North Africa | 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
Middle East & North Africa
Records
63
Source