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Glossary:Gross capital formation

Gross capital formation (P.5) in national accounts is measured by the total value of the gross fixed capital formation (P.51g), changes in inventories (P.52) and acquisitions less disposals of valuables (P.53) for a unit, an institutional sector or the whole economy.

P.5 = P.51g + P.52 + P.53

By deducting consumption of fixed capital (P.51c) net capital formation is obtained.

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