Gross fixed capital formation (constant 2015 US$)



Countries By Gross fixed capital formation (constant 2015 US$)



Key points



Official Definition of Gross fixed capital formation (constant 2015 US$)

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. Data are in constant 2015 prices, expressed in U.S. dollars.



Importance

Gross fixed capital formation is a crucial macroeconomic statistic that signifies the investment made by a country in physical assets such as infrastructure, machinery, equipment, and buildings. A high value of Gross fixed capital formation indicates that the country is investing significantly in its productive capacity, which can lead to economic growth and development. This investment can boost productivity, create job opportunities, attract foreign investment, and enhance the country's competitiveness in the global market.

Conversely, a low value of Gross fixed capital formation may indicate underinvestment in essential infrastructure and productive assets. This could hinder economic growth, limit job creation, reduce competitiveness, and lead to a decline in overall economic performance. Additionally, inadequate investment in fixed capital may result in a lack of technological innovation, poor quality infrastructure, and inefficiencies in production processes.

In conclusion, the Gross fixed capital formation statistic is vital for assessing a country's investment trends, economic development potential, and overall competitiveness. Governments and policymakers often use this statistic to gauge the level of investment in the economy and to implement strategies that promote sustainable economic growth and prosperity.



Top 10 Countries by Gross fixed capital formation (constant 2015 US$)

Bottom 10 Countries by Gross fixed capital formation (constant 2015 US$)



Regions

Europe

Analysis of Gross fixed capital formation (constant 2015 US$) reveals varying levels of investment among the listed countries. Countries like the United Kingdom, Germany, and France exhibit high levels of capital formation, indicating robust infrastructure development and economic growth potential. However, smaller economies like Montenegro and Moldova show lower figures, suggesting possible challenges in attracting investments. Higher capital formation can signify increased productivity and job creation but may also lead to inflationary pressures if not managed effectively. Conversely, lower levels of capital formation could indicate limited economic expansion but may offer cost stability. Overall, this statistic underscores each country's commitment to long-term growth and can influence their competitiveness and resilience in the global market.

Far East: East Asia, SE Asia, Australia

The Gross fixed capital formation data for the listed countries show a significant disparity in investment levels, with Japan leading at $1.11 trillion, followed by Korea, Republic of (South) and Australia. These countries' high investments indicate strong economic development and infrastructure growth potential. However, countries like Brunei and Cambodia have notably lower investment figures, suggesting a need for increased capital spending to boost their development. Higher capital formation generally leads to enhanced infrastructure, productivity, and economic competitiveness. Therefore, while Japan and Korea enjoy advantages of robust development, countries like Brunei and Cambodia may need to address their lower investment levels to spur economic growth and diversification.

ASEAN

Brunei shows a low Gross Fixed Capital Formation at $4.83 billion, indicating limited investment in infrastructure and development. Cambodia follows with $5.81 billion, also at a relatively lower scale. Indonesia holds a significantly larger amount with $331.73 billion, showcasing robust investment in various sectors. Malaysia, the Philippines, and Singapore have moderate investments ranging from $71.99 billion to $77.63 billion, contributing to steady development. Thailand and Vietnam lead with over $100 billion each, reflecting strong commitment to infrastructure growth. While lower investments like in Brunei and Cambodia may signify slower progress, higher investments in Indonesia, Thailand, and Vietnam bode well for future economic expansion and competitiveness.

Latin America

The gross fixed capital formation data for the selected countries in constant 2015 US dollars varies significantly, reflecting differing levels of investment in infrastructure, equipment, and construction. Brazil stands out with the highest investment, signaling a strong commitment to economic development. Mexico and Argentina also show substantial investments, indicating robust economic activity. However, smaller economies like Honduras and Nicaragua have much lower figures, suggesting potential challenges in infrastructure development. While high investment levels can drive economic growth, they also bring risks such as overcapacity. Overall, the data highlights the diverse economic landscapes in the region, with each country facing unique opportunities and challenges in their quest for sustainable development.

Middle East

The Gross fixed capital formation data for the selected countries shows a wide disparity in investment levels. Countries like Turkey, Saudi Arabia, and the United Arab Emirates exhibit high levels of investment, indicating a focus on infrastructure development and economic growth. These nations are likely to experience increased productivity and technological advancement. Conversely, countries like Syria and Armenia show significantly lower investment figures, potentially hindering their long-term growth prospects. While high investment levels can spur economic development, they may also lead to overcapacity and inefficiencies if not managed effectively. Overall, Gross fixed capital formation is crucial for driving economic expansion, enhancing competitiveness, and fostering innovation in these economies.



Rivals

Anglosphere v BRICS

The Gross fixed capital formation data shows significant variations among the selected countries. The United States leads with the highest amount at $4.33 trillion, followed by India at $736.57 billion and the United Kingdom at $502.22 billion. These figures indicate the level of investments made in infrastructure, machinery, and construction within each country. The high capital formation in the United States and United Kingdom reflects strong economic development and industrial capacity. India's substantial investment signifies growth potential, while lower figures for countries like South Africa and New Zealand suggest limitations in infrastructure development. Each country's level of capital formation impacts its economic growth, industrial competitiveness, and potential for future development.

Russia v Ukraine

Gross fixed capital formation in constant 2015 US dollars for the Russian Federation amounts to approximately $290 billion, while for Ukraine it totals around $17.7 billion. The vast disparity in these figures reflects the stark difference in economic size and development between the two countries. Russia's higher investment levels indicate a more robust economy with greater infrastructure development and industrial capacity. However, this could also signify potential over-reliance on capital-intensive sectors. On the other hand, Ukraine's lower capital formation reflects its challenges in attracting investments and maintaining infrastructure. This statistic is crucial for both countries, as it directly impacts economic growth, job creation, and overall competitiveness in the global market.

France v United Kingdom

In terms of Gross fixed capital formation, France has recorded $565.03 billion and the United Kingdom has recorded $502.22 billion, both in constant 2015 US dollars. France's higher capital investment indicates a strong commitment to infrastructure and industrial development, potentially leading to long-term economic growth. On the other hand, the United Kingdom's slightly lower figure may suggest a more conservative approach to capital spending. While France's strategy could result in enhanced competitiveness, the UK's cautious approach may ensure stability in the face of economic uncertainties. The impact of this statistic lies in the potential for France to experience faster economic expansion due to increased investments, while the UK's approach may provide stability but could risk falling behind in terms of infrastructure and innovation.

Israel v Iran

Iran has a Gross fixed capital formation of $82.20 billion in constant 2015 US$, while Israel has a slightly higher figure of $79.20 billion. Iran's higher capital formation may indicate more significant investments in infrastructure and construction compared to Israel. However, Israel's lower but still substantial capital formation suggests a focus on modernizing existing infrastructure and technology. For Iran, this high investment can lead to greater economic growth but might also strain resources and lead to potential overcapacity. In contrast, Israel's approach may result in more sustainable development and efficient resource allocation, albeit with possibly slower growth.

Saudi Arabia v Iran

Gross fixed capital formation in constant 2015 US$ shows that Iran has a value of $82,204,601,922.24 while Saudi Arabia stands at $165,211,835,266.56. Saudi Arabia's significantly higher investment in fixed capital formation indicates its focus on infrastructure development, which can boost economic growth and productivity in the long term. However, it may also lead to overcapacity if not managed efficiently. On the other hand, Iran's lower value suggests slower growth but potentially lower risk of overinvestment. Both countries need to ensure effective allocation of capital to maximize development impact while minimizing risks of inefficiency and debt accumulation.

India v Pakistan

India's gross fixed capital formation stands at approximately $736.57 billion in constant 2015 US dollars, significantly higher than Pakistan's $45.63 billion. This reflects India's larger investments in physical assets like infrastructure and construction compared to Pakistan. India's advantage lies in its ability to fund major projects that drive economic growth and industrial development. However, this high level of investment also poses challenges such as ensuring efficient utilization of funds and preventing overcapacity. For Pakistan, the lower figure indicates a need for more substantial investments to boost economic growth and modernize infrastructure. Improving gross fixed capital formation is crucial for both countries to enhance productivity, stimulate innovation, and attract foreign investment.

Turkey v Greece

In terms of Gross Fixed Capital Formation, Turkey significantly outpaces Greece with a value of $265.89 billion compared to Greece's $22.33 billion. This illustrates Turkey's larger investments in infrastructure, machinery, equipment, and construction activities compared to Greece. Turkey's advantage lies in its robust and growing economy, allowing for substantial capital investments. On the other hand, Greece's lower capital formation reflects its economic challenges and slower development pace. The impact of this statistic suggests that Turkey is likely to experience greater economic growth and modernization compared to Greece in the near future, potentially leading to a wider development gap between the two countries.



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