Eurostat's Concepts and Definitions Database


Gross fixed capital formation
Term extension
ESA 1995
Gross fixed capital formation as defined by the European System of Accounts (ESA) consists of resident producers' acquisitions, less disposals, of fixed assets during a given period plus certain additions to the value of non-produced assets realised by the productive activity of producer or institutional units.

Additions to the value of tangible non-produced assets include major improvements to land, such as land reclamation by construction of dikes.

Fixed assets are tangible or intangible assets produced as outputs from processes of production that are themselves used repeatedly, or continuously, in processes of production for more than one year.

Gross fixed capital formation consists of both positive and negative values.
- Positive values include: new or existing fixed assets purchased, acquired through barter, received as capital transfers in kind or acquired by the user under a financial lease, production of fixed assets which are retained for producers' own use, major improvements to fixed assets and existing historic monuments and the natural growth of assets.
- Negative values include: disposals of fixed assets e.g. of existing fixed assets, which can be either sold, surrendered in barter or surrendered as capital transfers in kind. Disposals of fixed assets are recorded as negative acquisitions and exclude consumption of fixed capital and exceptional losses, such as those due to drought or other natural disasters.
Eurostat, "European System of Accounts - ESA 1995", Office for Official Publications of the European Communities, Luxembourg, 1996
Related terms
Term Term extension    
  • Gross capital formation
  • SNA View
  • Acquisitions less disposals of land and other tangible non-produced assets
  • ESA 1995 View
  • Addition to the value of non-produced non-financial assets
  • ESA 1995 View
  • Investment
  • View
    Statistical theme(s)
  • Industry, Trade and Services
  • Economy and Finance
  • Other languages
    Term Term extension    
  • Bruttoanlageinvestitionen
  • ESVG 1995 View (Deutsch)
  • Formation brute de capital fixe
  • SEC 1995 View (Français)