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

Instead he inherits an energy shock layered on top of an economy that needs more capital formation, not less.

From MarketWatch • May 22, 2026

U.S. public equity markets—the backbone of our economy—have long been the global gold standard for capital formation and wealth creation.

From The Wall Street Journal • Apr. 27, 2026

Equity investments by well-governed merchant-banking subsidiaries in local businesses boost capital formation; those from private-equity companies all too often favor high-risk speculation.

From Barron's • Dec. 19, 2025

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.