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Capital Formation

   Also found in: Wikipedia 0.01 sec.
Capital formation
Expansion of capital or capital goods through savings, which leads to economic growth.

Capital Formation
The transfer of capital from individuals, organizations, or government for business use. For example, a widget company experiences capital formation when people buy widgets. The company can then use the profit to encourage investment or to expand its operations, among other options. Capital formation is crucial to economic growth.

capital formation
The creation of productive assets that expand an economy's capacity to produce goods and services. Private savings facilitates capital formation by allowing resources to be diverted to corporate investment rather than individual consumption.


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Aa This survey showed the number of institutions, number of persons engaged with their compensations, output value, intermediate consumption, gross value added with it's various components, and the gross fixed capital formation of the financial sector.
9% decline in Gross fixed capital formation was the lowest in five quarters and a sign that businesses and consumers are starting to put money back to work.
6 percent of GDP for the quarter, Gross Fixed Capital Formation, which is an indicator of investment in productive asset formation, is down from 32.
 
 
 
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