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

Simon Kuznets believed in “secondary secular movements” or “long swings” linked to population and capital formation.

From The Wall Street Journal • Jun. 5, 2026

The better response is to keep capital formation alive and allow high prices to do what they are supposed to do: mobilize new supply, logistics improvements and investment.

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

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

This factor is the mobilisation of capital and the consequent separation of the process of capital formation from the process of capital-using.

From Freeland A Social Anticipation by Hertzka, Theodor