Gross Fixed Capital Formation refers to the value of acquisitions less those disposals of fixed assets during a given period. Fixed assets are the assets produced through production activities with a unit value above a specified amount and which could be used for over one year. Natural assets are not included. Gross fixed capital formation can be categorized into total tangible fixed capital formation and total intangible fixed capital formation. Total tangible fixed capital formation includes the value of the construction projects and installation projects completed and the equipment, apparatus, and instruments purchased (less those disposed of) as well as the value of land improved, the value of draught animals, breeding stock, and animals for milk, for wool and for recreational purposes and the newly increased forest with economic value. Total intangible fixed capital formation includes the prospecting of minerals and the acquisition of computer software minus the disposal of them.
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