(Share to GDP Growth in Percentage Points, At Constant 2018 Prices)
Do elections provide an economic boost? A look at government data from 1982 to 2021 showed gross domestic product (GDP) growth averaging higher (4.8%) in election years than in non-election years (3.2%). Capital formation, which refers to investments in ﬁxed capital like construction and durable equipment, among others, has been the biggest contributor to GDP growth during election years. In terms of growth, capital formation averaged by around 11.6% during the past 12 election years, higher than consumer spending’s 4.7% and government’s 3.9%.