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

And it maintains that it strives to balance investor protection with a duty to promote capital formation for even the smallest companies.

From Barron's • Dec. 3, 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.