The Bahamas has a GDP of $15.8B compared to $76B for Belarus, ranking 140/197 and 83/197 by economy size, respectively.
The Bahamas has $11.5B in government debt (72.5% of GDP), compared to $30.3B (39.9% of GDP) in Belarus.
Bahamas vs Belarus GDP by year
| Year | GDP, current $ | |
|---|---|---|
Bahamas
|
Belarus
|
|
| 2024 | $15,832,800,000 | $75,961,865,472 |
| 2023 | $15,271,300,000 | $72,478,760,370 |
| 2022 | $13,896,800,000 | $73,775,179,925 |
| 2021 | $12,037,000,000 | $69,673,747,132 |
| 2020 | $10,363,200,000 | $61,371,673,345 |
| 2019 | $13,277,000,000 | $64,410,170,653 |
| 2018 | $12,819,200,000 | $60,031,026,576 |
| 2017 | $12,446,900,000 | $54,725,405,751 |
| 2016 | $11,880,900,000 | $47,723,545,321 |
| 2015 | $11,837,600,000 | $56,454,769,845 |
| 2014 | $11,139,100,000 | $78,813,069,121 |
| 2013 | $10,475,300,000 | $75,527,558,966 |
| 2012 | $10,720,400,000 | $65,685,890,439 |
| 2011 | $10,070,450,000 | $61,762,382,328 |
| 2010 | $10,095,760,000 | $57,231,904,543 |
| 2009 | $9,981,960,000 | $50,873,167,326 |
| 2008 | $10,526,000,000 | $60,752,106,347 |
| 2007 | $10,618,340,000 | $45,275,711,996 |
| 2006 | $10,167,250,000 | $36,961,894,281 |
| 2005 | $9,836,200,000 | $30,210,091,837 |
| 2004 | $9,055,290,000 | $23,141,566,293 |
| 2003 | $8,870,090,000 | $17,825,444,724 |
| 2002 | $8,881,160,000 | $14,594,900,945 |
| 2001 | $8,317,830,000 | $12,354,820,144 |
| 2000 | $8,076,470,000 | $12,736,856,828 |
| 1999 | $7,683,870,000 | $12,138,486,532 |
| 1998 | $6,833,220,000 | $15,222,012,660 |
| 1997 | $6,332,360,000 | $14,128,408,566 |
| 1996 | $3,609,000,000 | $14,500,437,520 |
| 1995 | $3,429,000,000 | $13,972,683,274 |
| 1994 | $3,259,000,000 | $14,931,435,232 |
| 1993 | $3,092,000,000 | $16,275,073,527 |
| 1992 | $3,109,000,000 | $16,939,790,094 |
| 1991 | $3,111,160,000 | $18,404,907,975 |
| 1990 | $3,166,000,000 | $17,389,558,233 |
| 1989 | $3,062,000,000 | - |
| 1988 | $2,817,900,000 | - |
| 1987 | $2,713,999,900 | - |
| 1986 | $2,472,500,000 | - |
| 1985 | $2,320,699,900 | - |
| 1984 | $2,041,100,000 | - |
| 1983 | $1,732,800,000 | - |
| 1982 | $1,578,300,000 | - |
| 1981 | $1,426,500,000 | - |
| 1980 | $1,335,300,000 | - |
| 1979 | $1,139,800,100 | - |
| 1978 | $832,400,000 | - |
| 1977 | $713,000,000 | - |
| 1976 | $642,100,000 | - |
| 1975 | $596,200,000 | - |
| 1974 | $632,400,000 | - |
| 1973 | $670,900,000 | - |
| 1972 | $590,900,000 | - |
| 1971 | $573,400,000 | - |
| 1970 | $539,500,000 | - |
| 1969 | $538,700,000 | - |
| 1968 | $453,800,000 | - |
| 1967 | $398,000,000 | - |
| 1966 | $346,800,000 | - |
| 1965 | $300,272,048 | - |
| 1964 | $266,560,043 | - |
| 1963 | $237,650,038 | - |
| 1962 | $212,170,034 | - |
| 1961 | $190,022,030 | - |
| 1960 | $169,736,027 | - |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/bahamas/belarus | CC BY 
GDP per capita in Bahamas vs Belarus by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Bahamas
|
Belarus
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2024 | $39,455 | $41,198 | $8,318 | $33,010 |
| 2023 | $38,232 | $39,090 | $7,897 | $30,834 |
| 2022 | $34,957 | $36,791 | $7,995 | $28,429 |
| 2021 | $30,368 | $31,065 | $7,490 | $27,611 |
| 2020 | $26,179 | $27,205 | $6,543 | $24,872 |
| 2019 | $33,640 | $36,116 | $6,838 | $22,302 |
| 2018 | $32,642 | $35,228 | $6,360 | $20,026 |
| 2017 | $31,875 | $34,282 | $5,786 | $18,414 |
| 2016 | $30,617 | $32,285 | $5,040 | $17,832 |
| 2015 | $30,719 | $32,138 | $5,967 | $18,134 |
| 2014 | $29,137 | $31,726 | $8,341 | $19,038 |
| 2013 | $27,643 | $30,294 | $7,998 | $19,014 |
| 2012 | $28,552 | $31,036 | $6,953 | $18,115 |
| 2011 | $27,091 | $30,074 | $6,528 | $16,563 |
| 2010 | $27,473 | $29,625 | $6,035 | $15,339 |
| 2009 | $27,513 | $29,197 | $5,352 | $14,034 |
| 2008 | $29,392 | $30,679 | $6,376 | $13,886 |
| 2007 | $30,052 | $31,232 | $4,735 | $12,320 |
| 2006 | $29,185 | $30,402 | $3,848 | $10,995 |
| 2005 | $28,602 | $29,143 | $3,126 | $9,637 |
| 2004 | $26,650 | $27,660 | $2,378 | $8,483 |
| 2003 | $26,429 | $27,031 | $1,820 | $7,362 |
| 2002 | $26,782 | $27,171 | $1,479 | $6,697 |
| 2001 | $25,372 | $26,351 | $1,244 | $6,238 |
| 2000 | $24,940 | $25,422 | $1,276 | $5,796 |
| 1999 | $24,041 | $24,184 | $1,211 | $5,331 |
| 1998 | $21,667 | $22,556 | $1,511 | $5,061 |
| 1997 | $20,368 | $21,606 | $1,396 | $4,596 |
| 1996 | $11,784 | $21,287 | $1,427 | $4,039 |
| 1995 | $11,375 | $20,377 | $1,371 | $3,846 |
| 1994 | $10,991 | $19,441 | $1,460 | $4,190 |
| 1993 | $10,613 | $18,781 | $1,590 | $4,641 |
| 1992 | $10,873 | $18,636 | $1,658 | $4,917 |
| 1991 | $11,082 | $19,296 | $1,805 | $5,330 |
| 1990 | $11,473 | $19,817 | $1,707 | $5,220 |
| 1989 | $11,291 | - | - | - |
| 1988 | $10,576 | - | - | - |
| 1987 | $10,361 | - | - | - |
| 1986 | $9,601 | - | - | - |
| 1985 | $9,167 | - | - | - |
| 1984 | $8,202 | - | - | - |
| 1983 | $7,081 | - | - | - |
| 1982 | $6,559 | - | - | - |
| 1981 | $6,029 | - | - | - |
| 1980 | $5,743 | - | - | - |
| 1979 | $4,994 | - | - | - |
| 1978 | $3,720 | - | - | - |
| 1977 | $3,253 | - | - | - |
| 1976 | $2,993 | - | - | - |
| 1975 | $2,841 | - | - | - |
| 1974 | $3,080 | - | - | - |
| 1973 | $3,341 | - | - | - |
| 1972 | $3,014 | - | - | - |
| 1971 | $3,004 | - | - | - |
| 1970 | $2,916 | - | - | - |
| 1969 | $3,027 | - | - | - |
| 1968 | $2,668 | - | - | - |
| 1967 | $2,453 | - | - | - |
| 1966 | $2,239 | - | - | - |
| 1965 | $2,030 | - | - | - |
| 1964 | $1,883 | - | - | - |
| 1963 | $1,759 | - | - | - |
| 1962 | $1,651 | - | - | - |
| 1961 | $1,555 | - | - | - |
| 1960 | $1,459 | - | - | - |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/bahamas/belarus | CC BY
The Bahamas' GDP per capita is $39,455, ranking 30/197, compared to $8,318 in Belarus, ranking 92/197. Adjusted for purchasing power (GDP per capita PPP), the Bahamas ranks 57th at $41,198, while Belarus ranks 68th at $33,010.
Economic indicators
|
Bahamas
|
Belarus
|
|
|---|---|---|
| Gross domestic product |
$15.8B
2024 |
$76B
2024 |
| GDP rank |
140/197
2024 |
83/197
2024 |
| GDP growth |
3.38%
2023-2024 |
4.01%
2023-2024 |
| GDP per capita |
$39,455
2024 |
$8,318
2024 |
| GDP per capita rank |
30/197
2024 |
92/197
2024 |
| GDP per capita, PPP |
$41,198
2024 |
$33,010
2024 |
| GDP per capita PPP rank |
57/197
2024 |
68/197
2024 |
| Government debt |
$11.5B
2024 |
$30.3B
2024 |
| Debt-to-GDP ratio |
72.5%
2024 |
39.9%
2024 |
| Government debt per person |
$28,616
2024 |
$3,318
2024 |
| Government debt per person rank |
25/185
2024 |
97/185
2024 |
| Average annual personal income after taxes |
$29,535
2026 |
$7,345
2026 |
| Market capitalization of domestic companies | n/a |
$6.01B
2024 |
| Income share by richest 10% | n/a |
20.7%
2020 |
| Income share by poorest 10% | n/a |
4.5%
2020 |
| Government expenditure, % of GDP |
20.6%
2024 |
40.9%
2024 |
| Consumer prices inflation |
0.41%
2023-2024 |
5.7%
2023-2024 |
| Central bank interest rate |
4%
2016 |
9.75%
2025 |
| Unemployment rate |
8.65%
2023 |
3.04%
2024 |
| Population |
405203
|
9013835
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Bahamas
|
Belarus
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2024 | 20.6% | 72.5% | 40.9% | 39.9% |
| 2023 | 22.2% | 74.8% | 40.3% | 40.7% |
| 2022 | 23.9% | 79.1% | 38% | 40.8% |
| 2021 | 26.9% | 84.5% | 36.7% | 41.2% |
| 2020 | 28.2% | 81.9% | 38% | 47.5% |
| 2019 | 19.9% | 59.3% | 37.4% | 41% |
| 2018 | 19.2% | 60.6% | 37.8% | 47.5% |
| 2017 | 22.5% | 53.4% | 39% | 53.2% |
| 2016 | 19.4% | 51% | 40.7% | 53.5% |
| 2015 | 17.9% | 48.5% | 41.8% | 53% |
| 2014 | 17.6% | 46.3% | 38.8% | 38.8% |
| 2013 | 18.4% | 44.8% | 40.8% | 36.9% |
| 2012 | 16.5% | 36.4% | 38.9% | 36.9% |
| 2011 | 17.1% | 35.3% | 40.3% | 58.2% |
| 2010 | 15.3% | 33.7% | 44.3% | 36.8% |
| 2009 | 15.6% | 30.9% | 51.7% | 32.5% |
| 2008 | 14.4% | 25.5% | 60% | 20.3% |
| 2007 | 13.3% | 23% | 49.2% | 15.8% |
| 2006 | 13% | 22.8% | 47.2% | 12.3% |
| 2005 | 12.3% | 22% | 45% | 8.12% |
| 2004 | 12.4% | 21.4% | 44% | 9.22% |
| 2003 | 11.8% | 20.9% | 43.5% | - |
| 2002 | 11.3% | 18.8% | 43.8% | - |
| 2001 | 11.2% | 18.2% | 42.4% | - |
| 2000 | 11.3% | 18.7% | - | - |
| 1999 | 8.78% | 18.7% | - | - |
| 1998 | 11.6% | 20% | - | - |
| 1997 | 12.5% | 20.8% | - | - |
| 1996 | 11.2% | 20.2% | - | - |
| 1995 | 11.2% | 20.5% | - | - |
| 1994 | 11.4% | 20.4% | - | - |
| 1993 | 11.5% | 19.8% | - | - |
| 1992 | 11.8% | 17.9% | - | - |
| 1991 | 12% | 15.4% | - | - |
| 1990 | 11.4% | 13.2% | - | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20).
GeoRank.org/economy/bahamas/belarus | CC BY
In 2024, the Bahamas' government spending was $3.26B, accounting for 20.6% of its GDP, while Belarus spent $31.1B, or 40.9% of GDP.
Debt-to-GDP ratio is 72.5% in the Bahamas and 39.9% in Belarus, ranking 53/185 and 133/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Bahamas
|
Belarus
|
|
| 2024 | -1.18% | 1.05% |
| 2023 | -3.49% | 0.76% |
| 2022 | -5.16% | -1.98% |
| 2021 | -11.1% | -0.22% |
| 2020 | -8.09% | -2.87% |
| 2019 | -1.65% | 0.91% |
| 2018 | -3.24% | 1.8% |
| 2017 | -5.92% | -0.34% |
| 2016 | -2.61% | -1.66% |
| 2015 | -3.24% | -2.96% |
| 2014 | -4.38% | 0.09% |
| 2013 | -5.16% | -0.98% |
| 2012 | -3.15% | 0.36% |
| 2011 | -2.87% | -2.81% |
| 2010 | -2.56% | -4.19% |
| 2009 | -2.45% | -7.23% |
| 2008 | -0.83% | -10.9% |
| 2007 | -0.76% | -7.82% |
| 2006 | -0.43% | -7.71% |
| 2005 | -1.11% | -6.71% |
| 2004 | -1.93% | -7.06% |
| 2003 | -1.63% | -6.74% |
| 2002 | -1.62% | -7.81% |
| 2001 | 0.3% | -4.74% |
| 2000 | 0.09% | - |
| 1999 | 1.68% | - |
| 1998 | -0.41% | - |
| 1997 | -1.56% | - |
| 1996 | -0.15% | - |
| 1995 | 0.18% | - |
| 1994 | -0.39% | - |
| 1993 | -1.05% | - |
| 1992 | -2.23% | - |
| 1991 | -2.29% | - |
| 1990 | -2.64% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20).
GeoRank.org/economy/bahamas/belarus | CC BY
In 2024, the Bahamas' government deficit, the difference between spending and revenue, was $187M, equivalent to 1.18% of GDP. This compares to Belarus' surplus of $796M, or 1.05% of GDP.
Over the past 24 years, the Bahamas recorded a fiscal deficit in 23 of those years, while Belarus ran a deficit in 18 years. On average, the Bahamas posted an annual deficit equal to 3.09% of GDP, compared to deficit of 3.32% of GDP for Belarus.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Bahamas
|
Belarus
|
|
| 2024 | 0.41% | 5.7% |
| 2023 | 3.05% | 5% |
| 2022 | 5.61% | 15.2% |
| 2021 | 2.9% | 9.5% |
| 2020 | 0.04% | 5.5% |
| 2019 | 2.49% | 5.6% |
| 2018 | 2.27% | 4.9% |
| 2017 | 1.52% | 6% |
| 2016 | -0.35% | 11.8% |
| 2015 | 1.86% | 13.5% |
| 2014 | 1.51% | 18.1% |
| 2013 | 0.72% | 18.3% |
| 2012 | 1.97% | 59.2% |
| 2011 | 3.2% | 53.2% |
| 2010 | 1.34% | 7.7% |
| 2009 | 2.06% | 13% |
| 2008 | 4.49% | 14.8% |
| 2007 | 2.49% | 8.4% |
| 2006 | 2.39% | 7% |
| 2005 | 1.59% | 10.3% |
| 2004 | 0.98% | 18.1% |
| 2003 | 3.03% | 28.4% |
| 2002 | 2.17% | 42.6% |
| 2001 | 2.04% | 61.1% |
| 2000 | 1.61% | 168.6% |
| 1999 | 1.25% | 293.7% |
| 1998 | 1.34% | 73% |
| 1997 | 0.54% | 63.8% |
Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2024, retrieved 2026-02-20); World Bank | Economy & Growth (1997–2024, retrieved 2026-04-06).
GeoRank.org/economy/bahamas/belarus | CC BY
Over the past 28 years, the Bahamas has recorded an average annual inflation rate of 1.95%, compared with 37.2% in Belarus. In 2024, inflation was 0.41% in the Bahamas and 5.7% in Belarus.
Top exports between countries
Balance of trade
|
Bahamas
|
Belarus
|
|
|---|---|---|
|
Current account balance
|
-$1.05B
2024 |
-$1.94B
2024 |
| Current account balance ranking |
127/190
2024 |
142/190
2024 |
| Current account balance, % of GDP |
-6.65%
2024 |
-2.56%
2024 |
| Goods imports |
$4.6B
2024 |
$44.2B
2024 |
| Goods exports |
$874M
2024 |
$39.5B
2024 |
| Service imports |
$2.47B
2024 |
$6.82B
2024 |
| Service exports |
$5.9B
2024 |
$10.1B
2024 |
| Imports of goods and services, % of GDP |
41.5%
2024 |
66.9%
2024 |
| Exports of goods and services, % of GDP |
37.8%
2024 |
65.1%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Bahamas
|
Belarus
|
|
|---|---|---|
| Economic freedom | 65.1 | 49.1 |
| Economic freedom ranking | 66/197 | 166/197 |
| Property rights | 62.7 | 20 |
| Government integrity | 67.1 | 28.3 |
| Judicial effectiveness | 79.8 | 11.5 |
| Tax burden | 96.1 | 93.5 |
| Government spending | 83.8 | 52.6 |
| Fiscal health | 9.1 | 96.8 |
| Business freedom | 69.4 | 50.3 |
| Labor freedom | 66.5 | 48 |
| Monetary freedom | 77.2 | 69 |
| Trade freedom | 59.4 | 69.2 |
| Investment freedom | 50 | 30 |
| Financial freedom | 60 | 20 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Bahamas
|
Belarus
|
|
| 2026 | 65.1 | 49.1 |
| 2025 | 63.2 | 48.9 |
| 2024 | 62.5 | 48.4 |
| 2023 | 62.6 | 51 |
| 2022 | 68.7 | 53 |
| 2021 | 64.6 | 61 |
| 2020 | 64.5 | 61.7 |
| 2019 | 62.9 | 57.9 |
| 2018 | 63.3 | 58.1 |
| 2017 | 61.1 | 58.6 |
| 2016 | 70.9 | 48.8 |
| 2015 | 68.7 | 49.8 |
| 2014 | 69.8 | 50.1 |
| 2013 | 70.1 | 48 |
| 2012 | 68 | 49 |
| 2011 | 68 | 47.9 |
| 2010 | 67.3 | 48.7 |
| 2009 | 70.3 | 45 |
| 2008 | 71.1 | 45.3 |
| 2007 | 72 | 47 |
| 2006 | 72.3 | 47.5 |
| 2005 | 72.6 | 46.7 |
| 2004 | 72.1 | 43.1 |
| 2003 | 73.5 | 39.7 |
| 2002 | 74.4 | 39 |
| 2001 | 74.8 | 38 |
| 2000 | 73.9 | 41.3 |
| 1999 | 74.7 | 35.4 |
| 1998 | 74.5 | 38 |
| 1997 | 74.5 | 39.8 |
| 1996 | 74 | 38.7 |
| 1995 | 71.8 | 40.4 |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09).
GeoRank.org/economy/bahamas/belarus | CC BY
The Economic Freedom Index for the Bahamas is 65.1, ranking 66/197, compared to 49.1 for Belarus, ranking 166/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Bahamas
|
Belarus
|
|
|---|---|---|
| Services, % of GDP |
77.2%
2024 |
49.7%
2024 |
| Industry, % of GDP |
9.63%
2024 |
30.7%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
0.51%
2024 |
6.87%
2024 |
|
GNI, Atlas method
|
$14.9B
2024 |
$75.4B
2024 |
| GNI per capita, PPP |
$39,550
2024 |
$32,300
2024 |
| Total reserves including gold |
$2.51B
2023 |
$8.91B
2024 |
| Total reserves ranking |
122/177
2023 |
82/177
2024 |
|
Net foreign direct investment
|
-$77.6M
2024 |
-$1.57B
2024 |
|
Net inflows of foreign direct investment
|
$241M
2024 |
$1.74B
2024 |
|
Net outflows of foreign direct investment
|
$163M
2024 |
$170M
2024 |
|
Servicing debt to the IMF, % of GNI
|
n/a |
7.19%
2024 |
| Poverty at national poverty lines |
9.3%
2020 |
3.9%
2022 |
|
Gross capital formation, % of GDP
|
26.8%
2024 |
25.8%
2024 |
GDP per capita map
Data sources: World Bank | Economy & Growth (1985–2024, retrieved 2026-04-06); U.S. Census Bureau (1985–2024, retrieved 2026-02-08).
GeoRank.org/economy/bahamas/belarus | CC BY
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Data sources:
- World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06)
- International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20)
- The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09)
- U.S. Census Bureau (1985–2024, retrieved 2026-02-08)
- TradeMap (2020–2021, retrieved 2026-02-08)
- United Nations | World Population Prospects (2026, retrieved 2026-03-10)
- LivingCost (2026, retrieved 2025-10-14)
- Central Intelligence Agency (CIA) (2020, retrieved 2026-02-20)
Creative Commons Attribution (CC BY) — you’re free to copy, share, remix, adapt, and use even commercially as long as you give appropriate credit and clearly indicate if you made changes. Other sources may be subject to different license terms.
The current account balance is the sum of net trade in goods and services, net earnings from cross-border investments, and net transfer payments. It reflects a country's economic transactions with the rest of the world and is a fundamental component of the balance of payments. A surplus indicates that a country exports more than it imports, while a deficit shows the opposite.
Gross National Income (GNI) measures a country's total income. It encompasses income earned by residents, businesses, and foreign sources, defined as employee compensation and investment profits. GNI adds product taxes not included elsewhere and subtracts subsidies. It accounts for income from residents working abroad but excludes earnings from foreigners within the country.
A negative value for Net Foreign Direct Investment indicates a country is a net receiver of investments, as foreign inflows exceed outflows after Balance of Payments adjustments. A positive value indicates a net provider, with outflows exceeding inflows. Inflows are credits (increasing foreign claims on domestic assets), while outflows are debits (increasing domestic assets abroad).
Foreign direct investment (FDI, net inflows) shows how much capital foreign investors bring into a country after accounting for any funds that flow back in the opposite direction. It represents the net value of overseas companies establishing, expanding, or financing businesses in the reporting country. A positive number means more capital entered the country than was withdrawn, while a negative number means foreign investors pulled out more than they invested.
Foreign direct investment (FDI, net outflows) shows how much capital residents of a country invest abroad after accounting for any funds that flow back in the opposite direction. It represents the net value of domestic companies establishing, expanding, or financing businesses in other countries. A positive number means more capital was invested abroad than withdrawn, while a negative number means residents pulled back more than they invested.
Principal and interest payments to the IMF in currency, goods, or services on long-term debt expressed as a share of GNI.
Formerly gross domestic investment, gross capital formation measures the share of a country’s economic output invested in fixed assets, including buildings, machinery, and infrastructure. It indicates how much of the economy is devoted to building productive capacity.