Gross fixed capital formation (annual % growth)



Countries By Gross fixed capital formation (annual % growth)



Key points



Official Definition of Gross fixed capital formation (annual % growth)

Average annual growth of gross fixed capital formation based on constant local currency. Aggregates are based on constant 2015 prices, expressed in U.S. dollars. Gross fixed capital formation (formerly gross domestic fixed investment) includes land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. According to the 2008 SNA, net acquisitions of valuables are also considered capital formation.



Importance

The Gross fixed capital formation (annual % growth) is a crucial macroeconomic statistic for a country as it reflects the average annual growth of investments in fixed assets like infrastructure, machinery, equipment, and construction.

When this statistic is high, it indicates that the country is experiencing significant investment in its physical assets. This can lead to improved productivity, job creation, and overall economic growth. High levels of gross fixed capital formation signify that the country is building a solid foundation for future economic development.

Conversely, a low value of Gross fixed capital formation growth implies a slowdown in investment which could hinder economic progress. It may lead to outdated infrastructure, reduced competitiveness, and limited capacity for future growth. Additionally, low levels of capital formation can indicate a lack of confidence in the economy by investors.



Top 10 Countries by Gross fixed capital formation (annual % growth)

Bottom 10 Countries by Gross fixed capital formation (annual % growth)



Regions

Europe

Analysis of Gross Fixed Capital Formation (annual % growth) in selected European countries shows a diverse economic landscape. Estonia stands out with a significant growth rate of 24.65%, indicating a strong investment environment. On the other hand, Ukraine and Ireland are experiencing sharp declines of -21.35% and -16.51% respectively, signaling potential economic challenges. Countries like Slovakia and Montenegro show double-digit negative growth, reflecting possible structural issues in their economies. This statistic highlights the importance of sustained investment in infrastructure and assets for economic growth. While high growth rates can signify a robust economy, negative growth rates may indicate the need for policy reforms to stimulate investment and development.

Far East: East Asia, SE Asia, Australia

Analysis of Gross Fixed Capital Formation (annual % growth) in the selected countries:

Australia, Brunei, Cambodia, Indonesia, Japan, South Korea, Malaysia, Mongolia, Philippines, Singapore, Thailand, and Vietnam exhibit varying trends in Gross Fixed Capital Formation. South Korea shows positive growth, while the Philippines, Singapore, Malaysia, and Mongolia experience significant declines. This statistic reflects each country's investment in infrastructure, technology, and development projects. Positive growth can indicate a robust economy and future expansion opportunities, whereas negative growth may signal economic challenges or a slowdown in development. Countries with declining rates like the Philippines and Singapore may face decreased competitiveness and potential economic stagnation.

ASEAN

Brunei, Malaysia, Singapore, and the Philippines are experiencing negative growth in gross fixed capital formation, indicating a slowdown in investment activities. Cambodia and Thailand have also shown a decrease, albeit to a lesser extent. In contrast, Vietnam's positive growth suggests an expansion in capital investments. Brunei's and Singapore's high dependency on oil revenues puts them at risk during downturns, while Vietnam's growth reflects its rising position as a manufacturing hub. Malaysia and the Philippines may face challenges in infrastructure development due to declining investments. Overall, this statistic highlights the varying levels of economic development and resilience among these countries.

Latin America

Examining the Gross Fixed Capital Formation (% growth) statistic for the listed countries reveals a wide range of performances. While Nicaragua and Paraguay show positive growth at 11.09% and 5.29% respectively, others like Bolivia and Colombia have experienced substantial contractions. This data indicates varying levels of investment in infrastructure, equipment, and construction projects across the countries. Countries with negative growth, such as Bolivia and Colombia, may face challenges in economic expansion and modernization. In contrast, nations with positive growth, like Nicaragua and Paraguay, likely have opportunities for increased productivity and development. The statistic highlights the importance of investment in capital assets for economic progress and competitiveness in the global market.

Middle East

The data on Gross fixed capital formation (annual % growth) for the selected countries shows a wide range of performances. Countries like Cyprus, Iran, and United Arab Emirates have shown positive growth in capital formation, indicating potential for economic expansion and development. On the other hand, countries like Lebanon, Egypt, and Tunisia have experienced significant negative growth, which could hamper their economic progress. The advantages for positively growing countries may include increased infrastructure, investment, and job creation, while the disadvantages for negatively growing countries could involve reduced competitiveness and limited economic diversification. This statistic is crucial as it reflects the level of investment in productive assets, highlighting the countries' ability to sustain economic growth and their attractiveness to investors.



Rivals

Anglosphere v BRICS

The Gross Fixed Capital Formation (annual % growth) statistic shows the average annual growth of investments in fixed assets across various countries. South Africa demonstrates the lowest growth rate at -14.63%, indicating a significant decrease in capital investment. This contrasts with countries like Australia, the United States, and Canada, which show negative growth but to a lesser extent, reflecting a milder slowdown in investment. India's -7.34% suggests a considerable decline, possibly impacting infrastructure development and economic growth. Each country's performance in this statistic reflects its level of investment attractiveness, with implications for future economic development and competitiveness.

Russia v Ukraine

In 2020, the Gross fixed capital formation (annual % growth) for the Russian Federation was -4.03% and for Ukraine, it was -21.35%. The negative growth indicates a contraction in the investments made by these countries towards fixed assets like infrastructure and equipment. Despite both countries experiencing a decline, Ukraine's rate of decline is significantly higher than that of Russia. This reflects challenges in investment climate, political instability, and economic uncertainties in Ukraine compared to Russia. For Russia, the slower decline may suggest relatively more stable economic conditions. However, the negative growth indicates potential setbacks in both countries' development, impacting infrastructure improvements, industrial expansion, and overall economic growth.

France v United Kingdom

In 2019, France experienced a negative growth rate in gross fixed capital formation at -6.78%, indicating a decline in investment in fixed assets. In comparison, the United Kingdom had a more significant decline at -10.77%. This data reflects a slowdown in infrastructure development and investment activities in both countries, suggesting potential challenges for future economic growth and productivity. France may face constraints in upgrading its infrastructure and supporting economic expansion, while the United Kingdom may struggle to stimulate investment for long-term development. The declining capital formation growth rates in both countries could lead to reduced competitiveness and innovation capacity, impacting their ability to attract investments and spur economic advancement.

Israel v Iran

Iran experienced a positive growth of 3.23% in gross fixed capital formation, indicating investment in infrastructure, machinery, and construction activities. In contrast, Israel showed a decline of -3.13%, suggesting a slowdown in capital investment. Iran's growth may lead to expanded capacity and improved competitiveness, while Israel's decrease could hinder future economic growth potential. Positive implications for Iran include enhanced productivity and job creation, but potential disadvantages may include inflationary pressures or overcapacity. Israel, on the other hand, may face challenges in maintaining competitiveness and attracting foreign investment due to reduced capital formation.

Saudi Arabia v Iran

Iran's Gross fixed capital formation shows a positive growth rate of 3.23%, indicating a steady increase in investments in fixed assets which can stimulate economic development. On the other hand, Saudi Arabia exhibits a negative growth rate of -10.41%, signaling a decline in investments that could potentially hinder economic progress. Iran stands to benefit from improved infrastructure and expanded industrial capacity with this growth, yet may face challenges in managing the pace of development. Meanwhile, Saudi Arabia's drawback might lead to a slowdown in economic diversification and modernization efforts, impacting its competitiveness in the long run.

India v Pakistan

India and Pakistan both show negative growth in Gross Fixed Capital Formation. India's growth rate stands at -7.34% while Pakistan's is at -6.68%. This indicates a slowdown in investment in both countries' fixed assets. India, with a larger economy, may have a more significant absolute decrease in investment compared to Pakistan, potentially impacting infrastructure development and economic expansion. However, this reduced investment could hint at a more cautious approach to capital spending amidst economic uncertainties. In contrast, Pakistan's lower growth rate may reflect structural challenges in attracting investment and fostering sustainable development. Both countries may need to reassess their investment strategies to spur growth and improve long-term economic stability.

Turkey v Greece

In terms of Gross fixed capital formation, Turkey leads over Greece with a growth rate of 7.33% compared to Greece's 2.02%. Turkey's higher growth indicates a stronger investment in physical assets like infrastructure and equipment, which can enhance productivity and economic growth. This could give Turkey an advantage in attracting foreign investments and improving its competitiveness. However, rapid growth in capital formation can also lead to potential risks like overcapacity or financial instability. For Greece, although the growth rate is lower, consistent investment in fixed capital can support long-term sustainable development. The statistic reflects Turkey's dynamic and expanding economy compared to Greece's more gradual progress, highlighting the varying stages of development and economic priorities between the two countries.



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