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

Private-markets firms are laying out some serious cash to expand their capital formation teams focused on secondaries as the strategy gains traction among institutional and wealth investors.

From The Wall Street Journal • Feb. 17, 2026

Household balance sheets and productive capital formation both remain strong.

From Barron's • Oct. 9, 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 an economy with high unemployment after a recession, many economists would say the impact of borrowing on capital formation is greatly reduced.

From Washington Post • Jan. 26, 2023

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.