| Long Definition: |
Gross
capital formation (formerly gross domestic investment) consists of outlays on
additions to the fixed assets of the economy plus net changes in the level of
inventories. Fixed assets include 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.
Inventories are stocks of goods held by firms to meet temporary or unexpected
fluctuations in production or sales, and "work in progress."
According to the 1993 SNA, net acquisitions of valuables are also considered
capital formation. Data are in current local currency. |
.png "Philippines Gross capital formation (current LCU)")
