Capital accumulation refers to the process of increasing assets or wealth over time. This can occur through saving money, investing in businesses, or acquiring property. The goal is to build a larger base of resources that can generate income or be reinvested for further growth. In economics, capital accumulation is essential for economic growth and development. It allows individuals and businesses to expand operations, create jobs, and improve living standards. Factors such as interest rates, savings rates, and government policies can influence the rate of capital accumulation in an economy.