Gross fixed investment

Updated: Aug 20, 2021

The total spent on fixed investment, before making any deduction for depreciation of the existing capital stock. This is contrasted with net fixed investment, which is gross fixed investment less an estimate of capital consumption. The figures for gross fixed investment are relatively reliable, as it is mainly carried out via observable market transactions, whereas capital consumption and thus net fixed investment are estimates, not based on observed market transactions.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.