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EU industrial structure - EU Bookshop - Europa

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iii42 investment demand<br />

Gross fixed capital formation (GFCF) is a measure of the<br />

net new investment by enterprises, government and<br />

households in the domestic economy in fixed capital<br />

assets, during an accounting period. GFCF is not a measure<br />

of total investment, as financial assets are not included.<br />

For that reason, this indicator gives a good insight into<br />

investment growth in the real economy. It represents a list<br />

of five product categories: metal products and machinery,<br />

transport equipment, construction work related to housing,<br />

construction work related to construction other than<br />

housing, and other products.<br />

FIgURE III.28: <strong>EU</strong>-27 investment breakdown in 2010 (% of total current price)<br />

31 %<br />

Construction work:<br />

other constructions<br />

Other products<br />

9 %<br />

Chapter III — Drivers of Sector Growth and Competitiveness<br />

Some assets have an impact on the amount and quality<br />

of production facilities in an economy. This is the case for<br />

metal products and machinery, for construction other than<br />

housing and for transport equipment investments. Others,<br />

such as housing construction work, increase consumer<br />

welfare but do not add substantially to the productive<br />

stock of assets of the private sector. The overall <strong>EU</strong> picture<br />

in 2010 shows that most of the investments that have taken<br />

place benefit the production facilities of the <strong>EU</strong>. The three<br />

categories, metal products and machinery, construction<br />

other than housing and transport equipment investments,<br />

represent in total two‑thirds of total investment,<br />

cf. Figure III.28.<br />

25 %<br />

Construction work: housing<br />

Note: The graph intentionally does not include products of agriculture, forestry, fisheries and aquaculture.<br />

Source: own calculations using Eurostat data.<br />

Total investment in the <strong>EU</strong> grew on average by 1.1 % in the<br />

<strong>EU</strong>‑27 and 1.6 % in the <strong>EU</strong>‑15 in 1997‑2010: ‘other products’<br />

was the category with the highest annual growth rate<br />

Metal products<br />

and machinery<br />

26 %<br />

9 %<br />

Transport<br />

equipment<br />

of 4 %. Transport equipment and the metal products and<br />

machinery sector also witnessed substantial growth,<br />

cf. Figure III.29.<br />

91

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