This table provides metadata for the actual indicator available from Vanuatu statistics closest to the corresponding global SDG indicator. Please note that even when the global SDG indicator is fully available from Vanuatuan statistics, this table should be consulted for information on national methodology and other Vanuatu-specific metadata information.
| Proxy |
No |
|---|---|
| Definition |
The “Growth in Gross Fixed Capital Formation” (GFCF) indicator measures the percentage change in the value of investments in fixed assets within an economy over a specific period, usually year-over-year. Fixed assets include infrastructure, machinery, equipment, and buildings that are used in the production of goods and services. This indicator reflects the level of investment in long-term assets that contribute to future economic productivity. |
| Concept |
Gross Fixed Capital Formation represents the net increase in physical assets within an economy, excluding inventory changes. It is a critical component of gross domestic product (GDP) and is used to assess the level of investment in the economy. Growth in GFCF indicates the expansion of an economy’s productive capacity, as more capital is being allocated to infrastructure, machinery, and other long-term assets that support economic growth. This indicator helps track how much of an economy’s resources are being devoted to investment in fixed capital, which is essential for sustaining and enhancing productivity. |
| Disaggregation |
None |
| Rationale |
Monitoring the growth in Gross Fixed Capital Formation is essential for understanding the dynamics of economic development and the potential for future growth. High growth in GFCF suggests strong investor confidence and increased capacity for economic output, which can lead to job creation, technological advancements, and improved standards of living. Conversely, low or negative growth in GFCF may indicate economic stagnation or declining investment levels, which can hinder long-term economic growth. |
| Method of Computation |
To compute the “Growth in Gross Fixed Capital Formation,” first collect data on the value of Gross Fixed Capital Formation for the current and previous periods. Then, calculate the growth rate by subtracting the previous period’s GFCF from the current period’s GFCF, dividing the difference by the previous period’s GFCF, and multiplying by 100 to express it as a percentage. This percentage reflects the change in investment in fixed assets within the economy. Formula: Growth in GFCF (%)= ((GFCF in Current Period – GFCF in Previous Period)/GFCF in Previous Period)*100 |
| Sustainable Development Goal Indicator Alignment |
8.2.1 |
| Unit of Measurement |
Percentage |
| Frequency of Collection |
Annually |