PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

The net increase in fixed capital in the economy, usually over the fiscal year. Basically this includes all new assets in the economy plus improvements to existing assets. So this is everything from home improvements to new electricity cables and cell phone towers. Anything which uses capital to increase the value of the assets in the country. In South Africa gross fixed capital formation (GFCF) reached R658,5bn in the first quarter of 2022 from R635.3bn in the last quarter of 2021. Over time GFCF improves the productivity of the economy and hence its ability to compete in the world economy. It also creates jobs in all sectors of the economy.

Edit Glossary Term