capital formation

Cultural  

1. The creation of capital. For example, capital is created when banks lend the money they hold in savings accounts to firms that use the money to purchase machinery.

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Example Sentences

He can choose not to compound an energy shock with monetary restraint that damages capital formation and productivity growth exactly when the economy needs both.

From MarketWatch • May 22, 2026

Solomon also expressed bullishness on winning business from upcoming initial public offerings that will proceed because "it's important for those businesses and for capital formation on those businesses," he predicted.

From Barron's • Apr. 13, 2026

Private-markets firms are laying out some serious cash to expand their capital formation teams focused on secondaries as the strategy gains traction among institutional and wealth investors.

From The Wall Street Journal • Feb. 17, 2026

Investments by companies in assets such as factories, machinery or construction – also called gross fixed capital formation – make up around 30% of GDP and are its second largest contributor following private consumption.

From BBC • Mar. 26, 2025

In absolute terms annual capital formation increased from 1.06 billion leva in 1961 to 3.06 billion leva in 1970, then declined to 2.74 billion leva in 1971.

From Area Handbook for Bulgaria by Baluyut, Violeta D.