Gross fixed capital formation (current US$)
Countries By Gross fixed capital formation (current US$)
Key points
- The Gross fixed capital formation statistic accounts for investments in physical assets such as machinery, equipment, buildings, and infrastructure across various sectors.
- China, People's Republic of leads in Gross fixed capital formation with a value of 6.24 trillion USD, showcasing its significant investment in infrastructure and economic development.
- Kiribati has the lowest Gross fixed capital formation among the listed countries, indicating limited capital investment in the country's development.
- The average Gross fixed capital formation across the countries is approximately 138.55 billion USD, reflecting the overall investment levels in the listed economies.
- This statistic provides insights into the nations' commitment to long-term growth through capital investments, essential for improving productivity and driving economic progress.
Official Definition of Gross fixed capital formation (current US$)
Gross fixed capital formation (formerly gross domestic fixed investment) includes land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. According to the 1993 SNA, net acquisitions of valuables are also considered capital formation. Data are in current U.S. dollars.
Importance
Gross fixed capital formation is a crucial macroeconomic statistic for a country as it reflects the level of investment in physical assets such as infrastructure, machinery, and buildings. A high value of gross fixed capital formation indicates that the country is investing significantly in its future development and economic growth by improving its productive capacity.
On the other hand, a low value of gross fixed capital formation suggests that the country may be underinvesting in crucial infrastructure and assets, which can hinder long-term economic growth potential. It may indicate a lack of modernization, competitiveness, and efficiency in the economy.
Therefore, the value of gross fixed capital formation has significant implications for a country's economic development and competitiveness on the global stage. Governments and policymakers often track this statistic closely to assess the level of investment in the economy and make informed decisions to stimulate growth and enhance productivity.
Top 10 Countries by Gross fixed capital formation (current US$)
Bottom 10 Countries by Gross fixed capital formation (current US$)
Regions
Europe
The Gross Fixed Capital Formation data for the listed countries varies significantly, ranging from billions to hundreds of billions of current US dollars. Economically stronger countries like the United Kingdom, Germany, and France have substantially high investments in infrastructure, machinery, and construction, indicating robust development and industrial capability. However, smaller economies like Iceland and Montenegro have relatively lower levels of capital formation. While high capital formation can drive economic growth and productivity, it can also lead to potential overcapacity and debt burdens. Overall, this statistic highlights each country's investment priorities, industrial competitiveness, and long-term economic sustainability.
Far East: East Asia, SE Asia, Australia
Among the listed countries, China stands out with the highest Gross Fixed Capital Formation at over $6.24 trillion, reflecting its robust infrastructure and investment levels. Japan follows with over $1.28 trillion, showcasing its advanced economy. South Korea and Indonesia also demonstrate strong capital formation, indicating ongoing development and industrial growth. While smaller economies like Cambodia and Mongolia show lower figures, they suggest potential for increased investment. This statistic reflects each country's commitment to infrastructure development and economic expansion, but also highlights disparities in capital allocation and resource utilization, which may impact their overall development trajectories.
ASEAN
Brunei has a Gross fixed capital formation of $4.85 billion, Cambodia at $6.22 billion, Indonesia leads with $335.82 billion, followed by Malaysia at $70.58 billion, the Philippines at $77.06 billion, Singapore at $72.53 billion, Thailand at $116.17 billion, and Vietnam at $104.95 billion. Indonesia, Thailand, and Vietnam stand out as key players, reflecting their robust infrastructure development. However, Cambodia and Brunei's lower figures may indicate room for growth but could also imply less investment in infrastructure. This statistic underscores the varying levels of economic development and investment opportunities across these countries, crucial for their long-term growth and competitiveness.
Latin America
Argentina, Brazil, and Mexico lead in Gross Fixed Capital Formation among the listed countries, indicating a strong investment in infrastructure and assets. This reflects positively on their development potential, attracting further investment and fostering economic growth. However, countries like Bolivia, Cuba, and Nicaragua lag significantly behind, potentially facing challenges in modernizing infrastructure and stimulating economic expansion. While high capital formation can spur innovation and productivity, excessive investments without proper planning may lead to inefficiencies and economic imbalances. Overall, the statistic highlights the varying levels of economic advancement and future prospects for each country based on their investment activity.
Middle East
Gross fixed capital formation data reveals significant disparities among the listed countries, with Turkey standing out as the highest investor at $198 billion, followed by Saudi Arabia at $176 billion and the UAE at $70 billion. These countries exhibit strong commitment to infrastructure development, which can enhance economic growth and attract foreign investment. However, countries like Syria, with only $767 million, face challenges in building robust infrastructure due to various internal conflicts. Higher capital formation generally indicates better growth prospects and competitiveness, but it also carries the risk of overspending and debt accumulation, especially for countries like Lebanon and Armenia with lower investment levels. Overall, the statistic reflects each country's development priorities and potential for sustained economic advancement.
Rivals
Anglosphere v BRICS
Australia, Brazil, Canada, China, India, New Zealand, Russia, South Africa, the United Kingdom, and the United States all exhibit varying levels of Gross Fixed Capital Formation (current US$). China stands out with the highest capital formation, reflecting its rapid industrial growth. The United States follows closely, a testament to its robust infrastructure and technology investments. Canada and the United Kingdom also display strong capital formation, indicating stable economies. In contrast, countries like South Africa and New Zealand show comparatively lower values, potentially hindering their infrastructure development. Each country's level of capital formation influences its economic growth, technological advancement, and overall competitiveness in the global market.
Russia v Ukraine
Gross fixed capital formation data for the Russian Federation stands at $321.9 billion, significantly higher than Ukraine's figure of $20.9 billion. This reflects the stark economic contrast between the two countries, with Russia having a much larger economy and more extensive infrastructure development. The advantage for Russia lies in its ability to invest in infrastructure and industry on a larger scale, promoting economic growth and attracting foreign investment. However, the disadvantage is the risk of overreliance on resource-based industries. For Ukraine, the lower capital formation indicates limited capacity for large-scale investments, potentially hindering long-term economic growth. Ultimately, higher capital formation can lead to enhanced economic competitiveness and modernization for Russia, while Ukraine may struggle to keep pace with infrastructure development and global economic trends.
France v United Kingdom
France has a Gross fixed capital formation of $616,166,828,541.636, while the United Kingdom has a Gross fixed capital formation of $471,138,717,223.539. France surpasses the United Kingdom in this statistic, indicating a higher level of investment in land improvements, machinery, construction, and other capital assets. France's higher capital formation signifies potential advantages such as increased productivity, job creation, and infrastructure development. However, it may also lead to disadvantages like high debt levels or overcapacity. On the other hand, the United Kingdom's lower capital formation suggests slower economic growth and development compared to France. This statistic's impact on each country's development is significant as it reflects their investment in long-term productive assets, shaping their future economic potential and competitiveness.
Israel v Iran
Iran has a Gross Fixed Capital Formation of approximately $68.3 billion, while Israel's Gross Fixed Capital Formation amounts to about $92.3 billion. Israel's higher investment reflects its advanced infrastructure and technology sector compared to Iran. This indicates Israel's focused development on innovation and economic growth. However, Iran's lower investment may suggest potential challenges in infrastructure development and economic expansion. The impact of this statistic on both countries is crucial for long-term sustainable growth, with Israel benefiting from a robust foundation for future advancements, while Iran may need to increase investment to enhance its economic capabilities and competitiveness.
Saudi Arabia v Iran
India v Pakistan
India's Gross fixed capital formation amounts to $728,021,089,554.01, significantly higher than Pakistan's figure of $39,372,396,457.54. This indicates a stark contrast in capital investment between the two countries, with India having a much larger commitment to building infrastructure, purchasing machinery, and investing in various constructions. For India, this high level of capital formation can lead to enhanced productivity, economic growth, and job creation. However, it may also carry risks such as overcapacity or inefficient allocation of resources. Meanwhile, Pakistan's lower capital formation reflects potential challenges in infrastructure development and economic expansion. The country may face limitations in improving its industrial capacity and overall competitiveness due to this. Ultimately, Gross fixed capital formation is crucial for both countries' development, but they navigate different advantages and disadvantages in utilizing their capital effectively.
Turkey v Greece
Greece has a Gross Fixed Capital Formation of $22,775,316,169.70 while Turkey has a significantly higher figure of $198,253,210,432.03. This indicates that Turkey is investing substantially more in land improvements, machinery, construction, and other capital assets compared to Greece. The advantage for Turkey lies in the potential for greater economic growth and infrastructure development. However, such high levels of investment could also lead to overcapacity or financial risks. For Greece, the lower investment may hinder its ability to compete in the global market and may result in slower economic progress. Overall, a high Gross Fixed Capital Formation suggests a focus on long-term growth and development, but careful management is crucial to avoid negative consequences.
China v Japan
China, People's Republic of, leads in Gross fixed capital formation with $6.24 trillion, showcasing its massive investments in infrastructure, construction, and machinery, driving economic growth and modernization. Japan follows with $1.29 trillion, reflecting its focus on technological advancements and high-quality manufacturing. China's advantage lies in its scale and rapid expansion, but it faces the challenge of overcapacity and debt risk. Japan's strength lies in innovation and efficiency but struggles with an aging population and limited domestic demand. High capital formation indicates both countries are committed to development, but China's sheer magnitude gives it more transformative potential.
FAQs
- Which country has the most Gross fixed capital formation?
China, People's Republic of has the highest Gross fixed capital formation with a value of 6,240,246,521,872.13 current US dollars. - Which country has the least Gross fixed capital formation?
Kiribati has the least Gross fixed capital formation with a value of 32,309,396.90 current US dollars. - What is the average Gross fixed capital formation among the listed countries?
The average Gross fixed capital formation among the listed countries is approximately 138,545,250,150.97 current US dollars. - How is Gross fixed capital formation calculated?
Gross fixed capital formation includes various investments such as land improvements, purchases of plant and machinery, construction of infrastructure, and more, all measured in current US dollars. - How does Gross fixed capital formation impact a country's economy?
A higher Gross fixed capital formation indicates increased investments in productive assets, which can boost economic growth, create job opportunities, and enhance infrastructure development.