Fixed Capital Formation

Fixed Capital Formation

The process by which a company acquires its fixed assets. Fixed assets are productive assets a company holds for longer than one year. Thus, fixed capital formation occurs, for example, when a company builds a factory or installs a pipeline. Fixed capital formation is often expensive, but is necessary for growth in manufacturing and similar industries.
References in periodicals archive ?
For the same period, gross fixed capital formation decreased by 0.
Encouragingly, the rate of growth of gross fixed capital formation has also increased from 1.
In the 2000-12 period the modernity of the capital stock, measured as the real fixed capital formation in relation to the real fixed capital stock, was below that of many competitors.
Fixed capital formation, already at historical lows, are expected to drop 15 per cent this year mainly on non-recurring investment in transport equipment such as vessels, offsetting the effect of various other private and public investment projects, the central bank said.
Investment growth is very strong; gross fixed capital formation expanded by more than 20 percent year-on-year in 2016,' DBS noted.
Qatar's ranking was positively impacted by a number of factors, including: strong economic performance represented by low unemployment rate, high fixed capital formation ratio of GDP, domestic savings ratio of GDP, trade balance ratio of GDP, and overall productivity increase.
For the purpose of this study, capital formation in terms of gross fixed capital formation (GFCF) which measures the value of acquisitions of new or existing fixed assets by the business sector, government and households which are new value added in the economy that are invested to produce more goods and services rather than consumed (Ezirim, 1999).
5 percent of gross fixed capital formation in 2015, their lowest level since 1999, and compared to the annual average of 32.
After a new government is inaugurated in 2016, we expect gross fixed capital formation (GFCF) will return to real expansion.
According to the latest UNCTAD survey, the FDI inflows ratio of gross fixed capital formation in Bahrain amounted to 22.
That said, with the oil sector set for slower growth as global crude prices plunge, this will prompt larger net exports deficits and weigh on gross fixed capital formation, such that we anticipate slower growth over the next decade than in the last.
The empirical evidence supported the positive impact of the capital market on economic development in Nigeria proxied by Gross Fixed Capital Formation.