Investment growth

Gross fixed capital formation (GFCF) measures investment in fixed assets such as machinery, equipment, infrastructure, and buildings. It reflects the acquisition of new or existing fixed assets by businesses, governments, and households, minus disposals. GFCF is a key component of Gross Domestic Product (GDP) on the expenditure side, alongside consumption, government spending, and net exports. Investment in fixed assets increases an economy’s productive capacity and is a key driver of long-term economic growth.
Investment growth measures the annual percentage change in gross fixed capital formation. It reflects the extent to which investment has increased or decreased over one year. The real growth rates are calculated using GFCF measured in constant prices, meaning that they are adjusted for inflation.