Upper 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
Upper middle income
Records
63
Source
Upper middle income | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.366091
1971 0.29284217
1972 0.27341898
1973 0.38802568
1974 0.693329
1975 0.34020498
1976 0.41361406
1977 0.47362602
1978 0.3472591
1979 0.70039784
1980 1.33158795
1981 0.8414943
1982 0.70662944
1983 0.76862898
1984 0.37087282
1985 0.50692473
1986 0.41022044
1987 0.55087785
1988 0.89320312
1989 0.72110932
1990 0.4644206
1991 0.42151833
1992 0.5362301
1993 0.35964256
1994 0.35572093
1995 0.31810492
1996 0.2806396
1997 0.22302886
1998 0.29750627
1999 0.28761398
2000 0.24576131
2001 0.21199058
2002 0.23900334
2003 0.21766722
2004 0.33264663
2005 0.64331413
2006 1.01087603
2007 1.5714087
2008 1.50689066
2009 0.81483417
2010 1.54081581
2011 1.74351401
2012 0.89759405
2013 0.75290697
2014 0.48574885
2015 0.309419
2016 0.36235295
2017 0.41405993
2018 0.37279473
2019 0.38667478
2020 0.38720781
2021 1.13285696
2022

Upper 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
Upper middle income
Records
63
Source