Gross fixed capital formation (% of GDP)



Countries By Gross fixed capital formation (% of GDP)



Key points



Official Definition of Gross fixed capital formation (% of GDP)

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.



Importance

The Gross Fixed Capital Formation (% of GDP) is a crucial macroeconomic statistic for a country as it indicates the level of investment in productive assets within the economy.

If the value of this statistic is low, it may suggest that the country is not investing enough in infrastructure, machinery, equipment, and other building projects. This can lead to a lack of modernization, reduced productivity, and hindered economic growth in the long run.

On the other hand, a high value of Gross Fixed Capital Formation indicates that the country is actively investing in its infrastructure and productive capacity. This can lead to increased productivity, job creation, improved competitiveness, and overall economic development.



Top 10 Countries by Gross fixed capital formation (% of GDP)

Bottom 10 Countries by Gross fixed capital formation (% of GDP)



Regions

Europe

The Gross Fixed Capital Formation (% of GDP) statistic provides insights into the investment levels of various countries. Countries like Estonia, Ireland, and Montenegro show significantly higher levels of capital formation, indicating robust investment in infrastructure and productive assets, which can lead to long-term economic growth and development. On the other hand, countries like Greece and Ukraine exhibit lower levels, suggesting potential challenges in infrastructure development and economic expansion. Higher capital formation can enhance productivity, boost employment, and attract foreign investment, while lower levels may hinder competitiveness and sustainability. Each country's position in this statistic reflects its economic priorities, potential for growth, and attractiveness to investors.

Far East: East Asia, SE Asia, Australia

Brunei stands out among the listed countries as having the highest Gross Fixed Capital Formation (% of GDP) at 40.38%, indicating a significant level of investment in physical assets. China closely follows at 42.49%, showcasing its robust infrastructure development. However, Singapore and Malaysia have relatively lower percentages at 20.82% and 20.91% respectively, which could suggest less emphasis on long-term investments. This statistic reflects a country's commitment to economic expansion and modernization. Higher percentages generally imply a strong foundation for future growth but may also signify potential overinvestment or inefficiencies in resource allocation, while lower percentages could indicate a need for increased investment to drive economic progress.

ASEAN

The Gross fixed capital formation (% of GDP) for the listed countries varies significantly with Brunei having the highest value at 40.38% and Malaysia the lowest at 20.91%. This statistic reflects the level of investment in physical assets like infrastructure and buildings. Countries with higher values like Brunei and Indonesia may indicate strong economic growth potential and modernization efforts. However, excessive reliance on fixed capital investment, as seen in Cambodia and Vietnam, could lead to overcapacity and debt burdens. Advantages include improved infrastructure and industrial capacity, while disadvantages may involve resource misallocation. This statistic is crucial for economic development as it signifies the long-term productivity and competitiveness of each country.

Latin America

Among the listed countries, the Gross Fixed Capital Formation (% of GDP) ranges from 9.81% in Cuba to 27.35% in the Dominican Republic. Chile has the highest percentage at 22.55%, followed closely by the Dominican Republic. These figures indicate the level of investment in physical assets such as infrastructure and equipment, essential for economic growth. Higher percentages, like those of the Dominican Republic and Chile, suggest a commitment to long-term growth and development. However, countries with lower percentages, such as Cuba, may face challenges in infrastructure development and modernization. Each country's level of Gross Fixed Capital Formation reflects its strategic priorities and potential for future economic expansion.

Middle East

When analyzing the Gross Fixed Capital Formation (% of GDP) statistic for the listed countries, we can see a range of values indicating the percentage of GDP allocated towards capital investments such as infrastructure, equipment, and construction. Countries like Algeria, Oman, and Turkey allocate a significant portion of their GDP towards capital formation, which can lead to improved infrastructure and economic growth. On the other hand, countries like Lebanon and Syria have lower percentages, which may indicate limited investment in development. Overall, a higher percentage suggests a stronger foundation for future economic growth but also comes with the risk of overbuilding and potential inefficiencies, while a lower percentage may reflect underinvestment and slower development pace.



Rivals

Anglosphere v BRICS

Analysis of Gross Fixed Capital Formation (% of GDP) in select countries:

Russia v Ukraine

In terms of Gross fixed capital formation (% of GDP), the Russian Federation leads with 21.56%, while Ukraine follows with 13.37%. This statistic reflects the investment made by each country in fixed assets like infrastructure, machinery, and buildings. The Russian Federation's higher percentage indicates a greater investment in capital assets compared to Ukraine, which could signify more robust economic development and potential for growth. However, this also means that Ukraine may have more room for future investment and expansion. For the Russian Federation, the advantage lies in the potential for sustained economic growth, while the disadvantage could be over-reliance on fixed assets. Conversely, Ukraine's advantage is flexibility for future investments, but the disadvantage may be slower immediate growth. Overall, a higher Gross fixed capital formation (% of GDP) suggests a higher level of economic development and potential growth for a country, impacting factors like productivity, competitiveness, and overall economic stability for both nations.

France v United Kingdom

France has a Gross fixed capital formation (% of GDP) of 23.27%, indicating a relatively high level of investment in fixed assets. On the other hand, the United Kingdom has a lower value of 17.46%, suggesting a slightly lower investment in capital formation compared to France. France's higher percentage reflects potentially robust infrastructure development and industrial capacity, contributing to economic growth. However, this may also indicate a higher dependency on capital-intensive industries. The United Kingdom's lower percentage may signify a more service-oriented economy or possibly a need for increased investment in infrastructure to spur further growth. Ultimately, these statistics highlight the varying investment levels and economic structures of these countries, influencing their development trajectories.

Israel v Iran

Iran has a Gross fixed capital formation (% of GDP) of approximately 28.47%, indicating a significant portion of its GDP is invested in land improvements, infrastructure, and construction. In comparison, Israel's Gross fixed capital formation stands at around 22.34%, reflecting a slightly lower but still considerable investment in fixed assets. Iran's higher percentage suggests a greater focus on capital-intensive industries and infrastructure development, potentially indicating long-term economic growth. However, it may also indicate over-reliance on capital investment. Israel's slightly lower percentage may indicate a more balanced approach to economic development. The impact of this statistic on both countries can result in improved infrastructure, productivity, and economic competitiveness, but excessive reliance on capital formation can lead to inefficiencies and economic imbalances in the long run.

Saudi Arabia v Iran

Iran has a Gross Fixed Capital Formation of 28.47% of GDP, indicating a relatively high level of investment in infrastructure and capital assets. Meanwhile, Saudi Arabia's Gross Fixed Capital Formation stands at 24.10% of GDP, reflecting a slightly lower level of investment compared to Iran. Iran's higher percentage suggests a focus on development and modernization, potentially leading to increased economic growth and job creation. However, this might also indicate a higher level of debt or risks associated with such rapid expansion. In contrast, Saudi Arabia's slightly lower percentage may imply a more conservative approach to investment, possibly aiming for more stable and sustainable growth. Nonetheless, this could mean slower progress in infrastructure development and economic diversification. Overall, the Gross Fixed Capital Formation statistic highlights the differing strategies of the two countries in driving economic development and the potential trade-offs they face in achieving their goals.

India v Pakistan

India has a Gross Fixed Capital Formation (% of GDP) of 27.25%, indicating a significant level of investment in infrastructure, machinery, and buildings. In contrast, Pakistan's Gross Fixed Capital Formation is lower at 13.11%, suggesting a comparatively lower investment in fixed assets. India's higher percentage signifies a potential advantage in economic growth and modernization, leading to improved productivity and competitiveness. However, this high level of investment may also pose risks such as overcapacity and debt burdens. On the other hand, Pakistan's lower percentage may indicate a need to boost investment for long-term economic development, although it could also reflect a cautious approach to debt accumulation. Ultimately, the Gross Fixed Capital Formation statistic highlights the differing development paths and priorities of India and Pakistan, with India potentially reaping greater economic rewards but also facing higher stakes.

Turkey v Greece

In terms of Gross fixed capital formation (% of GDP), Greece exhibits a lower percentage at 12.08%, indicating a relatively lower investment in fixed assets compared to Turkey, which has a higher percentage of 27.52%. Turkey's higher percentage suggests a greater commitment to investment in infrastructure, machinery, and construction projects. The advantage for Greece lies in potentially lower debt levels from investment-related expenditures, while Turkey may benefit from increased productivity and economic growth. However, Greece's lower investment levels could hinder long-term economic development, while Turkey's higher investments may lead to inflationary pressures if not managed effectively.

China v Japan

In terms of Gross fixed capital formation (% of GDP), China, People's Republic of leads with 42.49% compared to Japan's 25.49%. China's high percentage signifies a robust investment in physical assets like infrastructure and construction, driving economic growth but possibly leading to overcapacity. On the other hand, Japan's lower percentage indicates a more moderate level of investment, potentially reflecting a more mature economy with slower growth prospects. For China, this high level of capital formation may boost industrial output and create jobs but could also contribute to debt accumulation and environmental degradation. In contrast, Japan's lower level may imply steadier growth but could hinder innovation and competitiveness in the long run.



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