- Name
- Gross Fixed Capital Formation (% of GDP)
- Indicator purpose
- is defined as the acquisition (including purchases of new or second-hand assets) and creation of assets by producers for their own use, minus disposals of produced fixed assets
- Abstract
- Gross fixed capital formation is measured by the total value of a producer’s acquisitions, less disposals, of fixed assets during the accounting period plus certain additions to the value of non-produced assets realised by the productive activity of institutional units. Fixed assets are tangible or intangible assets produced as outputs from processes of production that are themselves used repeatedly or continuously in other processes of production for more than one year. An increasing gross fixed capital formation reflects the success in strategies to encourage private sector activity.
- Contact organization / person
- SIB
- Unit of measure
- Percentage
- Other characteristics
- Gross fixed capital formation (GFCF) is an important economic indicator especially since it highlights a part of continuing productive capacity. This is the case because the relevant assets relate to products that are intended for use in the production of goods and services for a period of more than one year. It is gross because no adjustments (as it relates to depreciation) are made to the fixed capital investment values. GFCF only measures the value of net additions to fixed assets and therefore is not measure of total investment. Land sales and land purchases are also not included; however, the value of the land improvement is included in the GFCF as a net addition.
- Classification used
- The gross fixed capital formation (% of GDP) is used to reflect success in strategies to encourage private sector activity.
- Disaggregation
- N/A
- Key statistical concepts
- N/A
- Recommended uses
- The gross fixed capital formation (% of GDP) measures the success of strategies used to encourage private sector activity.
- Baseline
- 13.3% (2012)
- Target 2020
- 15%
- Target 2030
- 20%
