European System of Accounts in the context of "Gross fixed capital formation"

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⭐ Core Definition: European System of Accounts

The European System of Accounts (ESA) is the system of national accounts and regional accounts used by members of the European Union. It was most recently updated in 2010 (ESA 2010).

The ESA 95 is fully consistent with the United Nations System of National Accounts (1993 SNA) in definitions, accounting rules and classifications. However, it incorporates certain differences, particularly in its presentation, that are more in line with use within the European Union. The ESA 95 underwent a revision to meet the requirements of the update of the SNA 1993 launched in 2003 under the auspices of the United Nations.

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👉 European System of Accounts in the context of Gross fixed capital formation

Gross fixed capital formation (GFCF) is a component of the expenditure on gross domestic product (GDP) that indicates how much of the new value added in an economy is invested rather than consumed. It measures the value of acquisitions of new or existing fixed assets by the business sector, governments, and "pure" households (excluding their unincorporated enterprises) minus disposals of fixed assets.

GFCF is a macroeconomic concept used in official national accounts such as the United Nations System of National Accounts (UNSNA), National Income and Product Accounts (NIPA), and the European System of Accounts (ESA). The concept dates back to the National Bureau of Economic Research (NBER) studies of Simon Kuznets of capital formation in the 1930s, and standard measures for it were adopted in the 1950s.

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European System of Accounts in the context of Intermediate consumption

Intermediate consumption (also called "intermediate expenditure") is an economic concept used in national accounts, such as the United Nations System of National Accounts (UNSNA), the US National Income and Product Accounts (NIPA) and the European System of Accounts (ESA).

Conceptually, the aggregate "intermediate consumption" is equal to the amount of the difference between gross output (roughly, the total sales value) and net output (gross value added or GDP). In the US economy, total intermediate consumption represents about 45% of gross output. The services component in intermediate consumption has grown strongly in the US, from about 30% in the 1980s to more than 40% today.

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LINKED FROM (PARENTS)
← Gross fixed capital formation ← Intermediate consumption
LINKS TO (CHILDREN)
National accounts → European Union → United Nations System of National Accounts →