General government final consumption expenditure (% of GDP)

This indicator reflects the proportion of a nation's economic output that is allocated to the consumption of goods and services by governmental entities. It encompasses all ongoing government spending, including salaries for public employees and essential services, which are pivotal in driving economic stability and growth. Notably, it captures expenditures related to national defense and security, although it specifically excludes military investments classified under governmental capital formation. By analyzing this expenditure as a share of GDP, policymakers and economists can gauge the extent of government involvement in the economy, assess the sustainability of public spending, and examine its implications for fiscal policy, social welfare, and overall economic health. Source: