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GROSS FIXED CAPITAL FORMATION - ESA

Statistics Directorate    
French Equivalent: Formation brute de capital fixe – SEC

Definition:
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.

Context:
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.

Source Publication:
ESA [3.102-3.106].

Cross References:
Gross fixed capital formation – SNA

Version Indicator: ESA

Statistical Theme: National accounts

Created on Tuesday, September 25, 2001

Last updated on Wednesday, January 04, 2006