Gross capital formation

The gross fixed capital formation together with the changes in inventories form the gross investments in the national accounts . It records the value of equipment (such as machines), real estate and other facilities (such as research and development) that have been acquired by domestic people in order to use them in the production process for more than a year. “Gross” means including depreciation . Without depreciation one speaks of net capital investments. The gross capital are an aggregate in the use statement of the NA of the gross domestic product .

They are divided into equipment investments and construction investments and other systems .

Empirical

Investment rates in the triad

Compared to GDP , gross and net fixed capital formation in the triad tends to lag behind over time, especially in Japan and Germany. In the USA, on the other hand, a slight downward trend in the net investment ratio can only be observed for net fixed capital formation.

See also

• Capital assets
• constant capital
• fixed capital

Web links

• Federal Statistical Office (Destatis): Table of gross fixed capital formation , publication on the subject. Retrieved October 5, 2017.

Individual evidence

1. ↑ Gross fixed capital formation. Destatis, accessed September 8, 2016 .