Zimbabwe | 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
Republic of Zimbabwe
Records
63
Source
Zimbabwe | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 1.9559342
1971 1.31980219
1972 1.2015148
1973 1.72264511
1974 2.08040608
1975 1.10906165
1976 1.66460897
1977 1.54665717
1978 0.90271846
1979 2.10074518
1980 3.21177587
1981 1.64110208
1982 1.02646695
1983 1.48563934
1984 1.39471486
1985 1.29179136
1986 0.99388786
1987 1.32614923
1988 2.39013775
1989 2.05932227
1990 1.22928728
1991 6.55682214
1992 7.00987944
1993 5.66061027
1994 5.96145262
1995 3.69420562
1996 3.99007876
1997 3.10028974
1998 0.80485837
1999 0.70359985
2000 0.80184743
2001 0.56482299
2002 1.32030562
2003 1.21503565
2004 2.06464063
2005 1.94565384
2006 4.45014974
2007 5.52927712
2008 2.40577467
2009 0.91279259
2010 2.28456556
2011 3.02582902
2012 1.96165548
2013 1.51174178
2014 1.48488137
2015 0.80456324
2016 0.90384564
2017 1.71234881
2018 1.64633912
2019 2.41107593
2020 2.24569685
2021 4.24065959
2022

Zimbabwe | 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
Republic of Zimbabwe
Records
63
Source