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Gross capital formation in % of GDP


Bhutan is the top country by gross capital formation in the world. As of 2016, gross capital formation in Bhutan was 55.6 %. The top 5 countries also includes Algeria, Congo, Turkmenistan, and Tuvalu.

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What is gross capital formation?

Gross capital formation (also known as 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.