capital accounts

Capital accounts are a component of national or regional accounts that shows how an economy’s net worth changes through capital-related transactions. They connect net saving with net capital transfers and the net acquisition of non-financial assets, thereby indicating how available resources are used to build or acquire productive and other non-financial wealth. The account provides a framework for analysing the relationship between saving and changes in an economy’s asset position. It can be compiled for an entire economy or for individual institutional sectors, allowing analysts to examine how households, businesses, government and the rest of the economy contribute to changes in net worth.