Middle income | 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 income
Records
63
Source
Middle income | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.52077807
1971 0.38361155
1972 0.37891042
1973 0.60273751
1974 0.91288147
1975 0.49864739
1976 0.49350384
1977 0.57384074
1978 0.36047932
1979 0.64079014
1980 1.0577712
1981 0.66012133
1982 0.54183045
1983 0.59260977
1984 0.32883717
1985 0.41003255
1986 0.33679446
1987 0.42686682
1988 0.76782393
1989 0.65886755
1990 0.44306959
1991 0.40148327
1992 0.53758928
1993 0.35272427
1994 0.34677741
1995 0.30384471
1996 0.25834894
1997 0.20905143
1998 0.2690268
1999 0.25501885
2000 0.22825138
2001 0.19855256
2002 0.22128986
2003 0.201007
2004 0.31231762
2005 0.61998795
2006 0.96646049
2007 1.50480071
2008 1.52253354
2009 0.8250815
2010 1.49639258
2011 1.6844023
2012 0.90843085
2013 0.77888326
2014 0.511756
2015 0.3207192
2016 0.37827522
2017 0.45124218
2018 0.40830026
2019 0.40774592
2020 0.42264867
2021 1.19779733
2022

Middle income | 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 income
Records
63
Source