Investment (% of GDP)

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 as a percentage of GDP expresses gross fixed capital formation relative to the total size of the economy. It indicates the share of economic output devoted to expanding productive capacity.