Page 83 - DECO201_MACRO_ECONOMICS_ENGLISH

Macro Economics

Notes
Table 1: Demand Side Growth in GDP, Growth Contribution and Relative Share
(figures in per cent at 1990-00 market prices)

Table 2: Demand Side Growth in GDP, Growth Contribution and Relative Share

There is another disconcerting longer term trend here, as the share of private consumption
has been continuously falling from a healthy 63.7% in 2002-03 to 55.5% in 2008-09. On the
positive side, the share of gross capital formation in the GDP was on a rising trend,
increasing from 27% in 2003-04 to 36.2% in 2007-08, mainly on the back of robust growth
in fixed capital formation which has risen from 25% to 34% in the same period.
On the savings and investment front, the encouraging trend was the consistent increase in
Gross Capital Formation (GCF), which rose from 25.2% of the GDP in 2002-03 to 39.1% in
2007-08. It is mainly because of the increase in the rate of investment by the corporate
sector.
Contd...

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