fixed capital

noun

1. capital goods, as machinery and tools, that are relatively durable and can be used repeatedly in the production of goods.

Word History and Origins

Origin of fixed capital¹

First recorded in 1840–50

Example Sentences

Industrial production helped the economy between July and September, despite trade uncertainty, with fixed capital investment also improving from stagnancy in the second quarter.

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Many have significantly reduced their expected growth in fixed capital investment.

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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.

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"Given that there are fixed capital budgets in all government departments, there is very little room for them to manoeuvre as well, so you're in a kind of Catch-22 situation."

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As this graphic from the Reserve Bank of Australia shows, "residential gross fixed capital" as a proportion of GDP is close to 20% in China — the comparable proportions in Australia, Japan, South Korea and the U.S. are all around 5% or less.

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Related Words

• venture capital