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Economy of Bosnia and Herzegovina vs Portugal compared: GDP & Debt

Updated on by Georank

Bosnia and Herzegovina has a GDP of $32.6B compared to $347B for Portugal, ranking 110/197 and 46/197 by economy size, respectively.

Bosnia and Herzegovina has $9.76B in government debt (29.9% of GDP), compared to $312B (89.9% of GDP) in Portugal.

Bosnia and Herzegovina vs Portugal GDP by year

Bosnia and Herzegovina
Portugal
1x
Year GDP, current $
Bosnia Portugal
2025 $32,599,982,936 $346,639,825,142
2024 $29,737,363,103 $313,656,884,871
2023 $27,592,361,498 $292,323,800,949
2022 $24,534,663,636 $256,898,677,175
2021 $23,672,712,121 $256,055,879,091
2020 $20,226,038,370 $229,618,773,423
2019 $20,482,608,984 $240,115,970,063
2018 $20,484,058,033 $242,092,894,543
2017 $18,326,373,136 $220,862,990,767
2016 $17,116,926,554 $206,305,431,242
2015 $16,404,348,361 $199,038,523,120
2014 $18,558,734,107 $230,078,616,300
2013 $18,179,109,209 $226,677,408,292
2012 $17,226,735,996 $216,536,676,772
2011 $18,644,233,537 $245,426,767,676
2010 $17,176,315,804 $238,443,864,993
2009 $17,613,949,091 $244,667,762,836
2008 $19,112,796,623 $263,416,394,624
2007 $15,778,734,264 $240,496,147,317
2006 $12,864,841,906 $208,756,449,276
2005 $11,222,796,337 $197,253,876,705
2004 $10,156,541,221 $189,382,122,532
2003 $8,498,894,359 $165,226,175,537
2002 $6,728,220,983 $134,795,565,549
2001 $5,800,615,375 $121,604,107,165
2000 $5,567,772,769 $118,605,192,877
1999 $4,686,256,363 $127,470,385,557
1998 $4,116,774,301 $123,946,327,916
1997 $3,671,909,673 $117,016,535,163
1996 $2,786,045,322 $122,630,089,680
1995 $1,866,572,954 $118,122,007,430
1994 $1,255,802,469 $99,688,641,304
1993 $3,630,668,950 $95,009,751,901
1992 $4,735,044,707 $107,592,098,307
1991 $6,122,959,184 $89,233,599,278
1990 $7,753,478,261 $78,713,860,217
1989 - $60,594,092,182
1988 - $56,347,250,696
1987 - $48,182,925,857
1986 - $38,745,901,354
1985 - $27,115,807,742
1984 - $25,217,969,050
1983 - $27,239,650,742
1982 - $30,527,754,793
1981 - $31,977,276,873
1980 - $32,896,519,824
1979 - $26,622,819,672
1978 - $23,487,614,051
1977 - $21,439,523,311
1976 - $20,332,831,565
1975 - $19,347,607,843
1974 - $17,512,391,476
1973 - $15,090,564,186
1972 - $11,239,117,865
1971 - $9,201,604,240
1970 - $8,108,235,704
1969 - $7,287,555,035
1968 - $6,644,693,214
1967 - $6,002,607,030
1966 - $5,370,108,031
1965 - $4,901,711,248
1964 - $4,429,202,657
1963 - $4,084,251,593
1962 - $3,835,883,663
1961 - $3,573,719,085
1960 - $3,339,150,158

Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).

GeoRank.org/economy/bosnia-and-herzegovina/portugal | CC BY

GDP per capita in Bosnia and Herzegovina vs Portugal by year

Bosnia and Herzegovina
GDP per capita

GDP per capita, PPP
Portugal
GDP per capita

GDP per capita, PPP
1x
Year Current $
Bosnia Portugal
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $10,382 - $32,082 -
2024 $9,398 $25,043 $29,328 $51,680
2023 $8,663 $23,376 $27,635 $49,353
2022 $7,656 $21,651 $24,621 $45,250
2021 $7,295 $18,287 $24,711 $38,658
2020 $6,130 $16,370 $22,299 $35,967
2019 $6,122 $16,429 $23,343 $37,866
2018 $6,048 $14,859 $23,541 $34,897
2017 $5,345 $13,627 $21,442 $32,971
2016 $4,929 $12,899 $19,980 $31,589
2015 $4,662 $11,845 $19,216 $29,608
2014 $5,206 $11,168 $22,121 $28,765
2013 $5,035 $10,808 $21,676 $27,966
2012 $4,694 $10,121 $20,593 $26,476
2011 $4,983 $9,761 $23,247 $26,803
2010 $4,506 $9,086 $22,552 $27,292
2009 $4,540 $8,698 $23,151 $26,472
2008 $4,842 $8,587 $24,949 $26,666
2007 $3,931 $7,686 $22,811 $25,738
2006 $3,166 $6,869 $19,839 $24,677
2005 $2,740 $5,956 $18,780 $22,725
2004 $2,453 $5,407 $18,064 $21,476
2003 $2,034 $4,917 $15,798 $20,850
2002 $1,607 $4,665 $12,937 $20,357
2001 $1,388 $4,307 $11,735 $19,529
2000 $1,338 $4,148 $11,526 $18,883
1999 $1,135 $3,875 $12,475 $17,718
1998 $1,007 $3,524 $12,199 $16,688
1997 $914 $3,041 $11,576 $15,789
1996 $719 $2,269 $12,185 $14,922
1995 $502 $1,507 $11,781 $14,406
1994 $337 $1,269 $9,977 $13,578
1993 $930 $1,067 $9,535 $13,202
1992 $1,118 $982 $10,811 $13,182
1991 $1,373 $975 $8,959 $12,739
1990 $1,743 $1,043 $7,885 $11,780
1989 - - $6,056 -
1988 - - $5,624 -
1987 - - $4,804 -
1986 - - $3,862 -
1985 - - $2,705 -
1984 - - $2,523 -
1983 - - $2,735 -
1982 - - $3,080 -
1981 - - $3,246 -
1980 - - $3,368 -
1979 - - $2,756 -
1978 - - $2,457 -
1977 - - $2,267 -
1976 - - $2,173 -
1975 - - $2,128 -
1974 - - $2,000 -
1973 - - $1,748 -
1972 - - $1,302 -
1971 - - $1,065 -
1970 - - $934 -
1969 - - $832 -
1968 - - $752 -
1967 - - $676 -
1966 - - $601 -
1965 - - $545 -
1964 - - $490 -
1963 - - $452 -
1962 - - $426 -
1961 - - $400 -
1960 - - $377 -

Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).

GeoRank.org/economy/bosnia-and-herzegovina/portugal | CC BY

Bosnia and Herzegovina's GDP per capita is $10,382, ranking 87/197, compared to $32,082 in Portugal, ranking 43/197. Adjusted for purchasing power (GDP per capita PPP), Bosnia and Herzegovina ranks 83rd at $25,043, while Portugal ranks 42nd at $51,680.

Economic indicators

Bosnia Portugal
Gross domestic product
$32.6B
2025
$347B
2025
GDP rank
110/197
2025
46/197
2025
GDP growth
2.13%
2024-2025
1.86%
2024-2025
GDP per capita
$10,382
2025
$32,082
2025
GDP per capita rank
87/197
2025
43/197
2025
GDP per capita, PPP
$25,043
2024
$51,680
2024
GDP per capita PPP rank
83/197
2024
42/197
2024
Government debt
$9.76B
2025
$312B
2025
Debt-to-GDP ratio
29.9%
2025
89.9%
2025
Government debt per person
$3,108
2025
$28,843
2025
Government debt per person rank
104/185
2025
26/185
2025
Average annual personal income after taxes
$9,479
2026
$16,647
2026
Market capitalization of domestic companies n/a
$61.9B
2018
Number of millionaires n/a
181,000
2026
Number of billionaires n/a
1
2026
Income share by richest 10%
23.6%
2021
26.9%
2023
Income share by poorest 10%
3.3%
2021
2.7%
2023
Government expenditure, % of GDP
44.9%
2025
43.7%
2025
Consumer prices inflation
4%
2024-2025
2.34%
2024-2025
Unemployment rate
10.7%
2024
6%
2025
Population
3114736
10788071

Spending and national debt comparison by year

Bosnia and Herzegovina
Spending

Debt
Portugal
Spending

Debt
1x
Year % of GDP
Bosnia Portugal
Government spending Government debt Government spending Government debt
2025 44.9% 29.9% 43.7% 89.9%
2024 43.3% 29.4% 42.5% 93.5%
2023 41.9% 29% 41.9% 96.9%
2022 39.4% 31.2% 43.9% 111.2%
2021 40.6% 35.8% 47.3% 123.9%
2020 45.4% 37.2% 49.1% 134.1%
2019 39.9% 32.8% 42.5% 116.1%
2018 40.4% 34.5% 43.3% 121.1%
2017 40% 38.6% 45.5% 126%
2016 41.5% 44.9% 44.9% 131.2%
2015 42.7% 46.4% 48.2% 131%
2014 46.2% 47.1% 51.7% 132.5%
2013 43.8% 43.8% 50% 130.8%
2012 47.9% 43.6% 48.8% 128.6%
2011 46.4% 40.9% 50% 114%
2010 48.7% 42.2% 51.9% 100.1%
2009 49% 36.4% 50.3% 87.8%
2008 48.4% 30.3% 45.5% 75.6%
2007 45.2% 18.2% 44.6% 72.7%
2006 44.2% 20.6% 45.2% 73.7%
2005 44.5% 24.9% 46.7% 72.2%
2004 45.6% 25.5% 46% 67.1%
2003 47.3% 27.6% 45.3% 63.9%
2002 47.4% 31.1% 44.2% 60%
2001 50.2% 35.1% 44.1% 57.4%
2000 56.2% 34.6% 42.8% 54.2%
1999 57.5% 56% 42.5% 55.4%
1998 54.4% 54.4% 42.6% 55.6%
1997 - - 42.4% 58.7%
1996 - - 43% 63.3%
1995 - - 42.6% 62.2%
1994 - - 42.8% 60.4%
1993 - - 46.5% 57.2%
1992 - - 48.2% 58.1%
1991 - - 45.9% 63.9%
1990 - - 42.2% 60.2%
1989 - - 36.2% 55.4%
1988 - - 36.2% 56.8%
1987 - - 37.5% 57.2%
1986 - - 38.9% 59.8%
1985 - - 37.5% 59.4%
1984 - - 34.6% 51.3%
1983 - - 34.7% 46.7%
1982 - - 35.8% 43%
1981 - - 35.3% 39.3%
1980 - - 32.4% 31%
1979 - - 30.8% 35.2%
1978 - - 31.7% 31.4%
1977 - - 35.1% 26.9%
1976 - - 38.2% 24.5%
1975 - - 31.9% 19.2%
1974 - - 25.8% 13.5%
1973 - - 25.7% 13.6%
1972 - - 22.8% 14.5%
1971 - - 15.5% 15.7%
1970 - - 15.5% 16.5%
1969 - - 14.9% 16.8%
1968 - - 14.3% 17.2%
1967 - - 14.1% 18.5%
1966 - - 14.4% 20.2%
1965 - - 13.4% 20.4%
1964 - - 13.9% 21.9%
1963 - - 14.6% 20.8%
1962 - - 14.5% 18.7%
1961 - - 14.6% 17.1%
1960 - - 14.3% 16.4%

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1989, retrieved 2026-07-08).

GeoRank.org/economy/bosnia-and-herzegovina/portugal | CC BY

In 2025, Bosnia and Herzegovina's government spending was $14.6B, accounting for 44.9% of its GDP, while Portugal spent $152B, or 43.7% of GDP.

Debt-to-GDP ratio is 29.9% in Bosnia and Herzegovina and 89.9% in Portugal, ranking 156/185 and 30/185, respectively.

Government deficit by year

Deficit/surplus
Bosnia and Herzegovina

Portugal
1x
Year Deficit/surplus, % of GDP
Bosnia Portugal
2025 -2.41% 0.31%
2024 -1.96% 0.5%
2023 -1.67% 1.26%
2022 0.15% -0.31%
2021 -0.18% -2.83%
2020 -4.5% -5.75%
2019 1.37% 0.12%
2018 1.63% -0.43%
2017 1.79% -3%
2016 0.34% -1.94%
2015 -0.19% -4.37%
2014 -2.87% -7.32%
2013 -2.19% -5.21%
2012 -3.76% -6.2%
2011 -2.73% -7.73%
2010 -4.06% -11.4%
2009 -5.34% -9.87%
2008 -3.82% -3.81%
2007 0.17% -2.91%
2006 2.08% -4.06%
2005 0.74% -6.05%
2004 -0.18% -5.91%
2003 -0.44% -5.57%
2002 -2.99% -3.7%
2001 -3.44% -4.68%
2000 -4.63% -3.32%
1999 -2.78% -2.93%
1998 -0.98% -4.3%
1997 - -3.65%
1996 - -4.63%
1995 - -5.14%
1994 - -7.37%
1993 - -8.06%
1992 - -5.19%
1991 - -7.93%
1990 - -6.82%
1989 - -2.86%
1988 - -3.52%
1987 - -6.79%
1986 - -7.45%
1985 - -8.35%
1984 - -5.23%
1983 - -4.86%
1982 - -7.02%
1981 - -8.34%
1980 - -6.92%
1979 - -6.08%
1978 - -7.15%
1977 - -7.5%
1976 - -10.2%
1975 - -7.1%
1974 - -3.2%
1973 - -5.39%
1972 - -7.72%
1971 - -0.23%
1970 - -0.24%
1969 - -1.53%
1968 - -1.24%
1967 - -0.46%
1966 - -2%
1965 - -0.03%
1964 - -1.93%
1963 - -3.33%
1962 - -1.69%
1961 - -3.17%
1960 - -3.13%
1959 - -1.73%
1958 - -0.52%
1957 - 0.08%
1956 - -0.18%
1955 - -0.31%
1954 - -0.58%
1953 - -0.35%
1952 - -0.34%
1951 - 0.94%
1950 - -0.83%
1949 - -0.46%
1948 - -2.04%
1947 - -1.65%
1946 - -2.32%
1945 - -2.38%
1944 - -1.44%
1943 - 0.03%
1942 - -0.35%
1941 - -0.08%
1940 - -1.74%
1939 - -0.73%
1938 - -0.08%
1937 - -0.09%
1936 - 0.08%
1935 - 0.75%
1934 - 0.6%
1933 - -0.07%
1932 - -0.03%
1931 - 0.04%
1930 - 0.79%
1929 - 1.86%
1928 - 0.2%
1927 - -2.27%
1926 - -4.21%
1925 - -1.48%
1924 - -3.16%
1923 - -3.47%
1922 - -10%
1921 - -6.5%
1920 - -5.66%
1919 - -8.83%
1918 - -8.3%
1917 - -5.49%
1916 - -
1915 - -
1914 - -
1913 - -0.34%
1912 - -0.02%
1911 - -0.73%
1910 - -0.19%
1909 - -0.82%
1908 - -0.56%
1907 - -0.69%
1906 - -0.45%
1905 - -0.75%
1904 - -0.26%
1903 - -0.91%
1902 - -0.5%
1901 - -0.69%
1900 - -0.35%
1899 - -0.77%
1898 - -0.5%
1897 - -0.93%
1896 - -1.35%
1895 - -0.2%
1894 - -0.16%
1893 - -0.02%
1892 - -0.8%
1891 - -2.15%
1890 - -2.01%
1889 - -1.95%
1888 - -2.14%
1887 - -0.67%
1886 - -1.43%
1885 - -1.68%
1884 - -1.48%
1883 - -1.1%
1882 - -0.39%
1881 - -1.2%
1880 - -1.63%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1880–1989, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/bosnia-and-herzegovina/portugal | CC BY

In 2025, Bosnia and Herzegovina's government deficit, the difference between spending and revenue, was $784M, equivalent to 2.41% of GDP. This compares to Portugal's surplus of $1.07B, or 0.31% of GDP.

Over the past 28 years, Bosnia and Herzegovina recorded a fiscal deficit in 20 of those years, while Portugal ran a deficit in 24 years. On average, Bosnia and Herzegovina posted an annual deficit equal to 1.53% of GDP, compared to deficit of 3.98% of GDP for Portugal.

Inflation comparison by year

Inflation
Bosnia and Herzegovina

Portugal
1x
Year Consumer prices inflation
Bosnia Portugal
2025 4% 2.34%
2024 1.7% 2.42%
2023 6.1% 4.31%
2022 14% 7.83%
2021 2% 1.27%
2020 -1% -0.01%
2019 0.6% 0.34%
2018 1.4% 0.99%
2017 0.8% 1.37%
2016 -1.6% 0.61%
2015 -1% 0.49%
2014 -0.9% -0.28%
2013 -0.1% 0.27%
2012 2.1% 2.77%
2011 4% 3.65%
2010 2.1% 1.4%
2009 -0.4% -0.84%
2008 7.4% 2.59%
2007 1.5% 2.45%
2006 6.1% 3.11%
2005 3.6% 2.28%
2004 0.3% 2.37%
2003 0.5% 3.22%
2002 0.3% 3.6%
2001 3.2% 4.37%
2000 5% 2.85%
1999 2.8% 2.34%
1998 -0.3% 2.57%
1997 5.7% 2.34%

Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2025, retrieved 2026-07-08); World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).

GeoRank.org/economy/bosnia-and-herzegovina/portugal | CC BY

Over the past 29 years, Bosnia and Herzegovina has recorded an average annual inflation rate of 2.41%, compared with 2.17% in Portugal. In 2025, inflation was 4% in Bosnia and Herzegovina and 2.34% in Portugal.

Top exports between countries

Bosnia
Export category Export value
Raw materials & minerals $4.5M
Wood & paper products $2.21M
Metals $1.6M
Chemicals & pharma $1.17M
Textiles & consumer goods $1M
Machinery & equipment $794K
Transport & tourism services $433K
Weapons & explosives $141K
Miscellaneous $135K
Processed food, beverages & tobacco $103K
Portugal
Export category Export value
Textiles & consumer goods $2.1M
Machinery & equipment $1.83M
Raw materials & minerals $1.6M
Chemicals & pharma $1.23M
Wood & paper products $1.19M
Animal & marine products $385K
Processed food, beverages & tobacco $326K
Precious metals & jewellery $313K
Metals $71K
Miscellaneous $68K

Balance of trade

Bosnia Portugal
Current account balance
-$1.02B
2025
$6.51B
2024
Current account balance ranking
117/190
2025
30/190
2024
Current account balance, % of GDP
-3.14%
2025
+2.08%
2024
Goods imports
$16.3B
2025
$109B
2024
Goods exports
$9.5B
2025
$81.4B
2024
Service imports
$1.42B
2025
$27.9B
2024
Service exports
$3.92B
2025
$62.7B
2024
Imports of goods and services, % of GDP
54.1%
2025
42.7%
2025
Exports of goods and services, % of GDP
41%
2025
43.7%
2025

Economic freedom indices

The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.

Bosnia Portugal
Economic freedom 63.1 71.2
Economic freedom ranking 83/197 33/197
Property rights 46.9 88.9
Government integrity 36.8 63.4
Judicial effectiveness 36.1 90.1
Tax burden 93.9 60.6
Government spending 48.4 44.6
Fiscal health 96.2 82
Business freedom 65.1 83.1
Labor freedom 62.7 54.8
Monetary freedom 77.5 77.7
Trade freedom 69 79.4
Investment freedom 65 70
Financial freedom 60 60

Economic freedom comparison by year

Bosnia and Herzegovina
Portugal
1x
Year Economic freedom index
Bosnia Portugal
2026 63.1 71.2
2025 63.5 70.5
2024 62 68.7
2023 62.9 69.5
2022 63.4 70.8
2021 62.9 67.5
2020 62.6 67
2019 61.9 65.3
2018 61.4 63.4
2017 60.2 62.6
2016 58.6 65.1
2015 59 65.3
2014 58.4 63.5
2013 57.3 63.1
2012 57.3 63
2011 57.5 64
2010 56.2 64.4
2009 53.1 64.9
2008 53.9 63.9
2007 54.4 64
2006 55.6 62.9
2005 48.8 62.4
2004 44.7 64.9
2003 40.6 64.9
2002 37.4 65.4
2001 36.6 66
2000 45.1 65.5
1999 29.4 65.6
1998 29.4 65
1997 - 63.6
1996 - 64.5
1995 - 62.4

Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08).

GeoRank.org/economy/bosnia-and-herzegovina/portugal | CC BY

The Economic Freedom Index for Bosnia and Herzegovina is 63.1, ranking 83/197, compared to 71.2 for Portugal, ranking 33/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Bosnia Portugal
Services, % of GDP
57.7%
2025
66.6%
2025
Industry, % of GDP
21.5%
2025
18.3%
2025
Agriculture, forestry, and fishing, % of GDP
4.36%
2025
1.96%
2025
GNI, Atlas method
$31.2B
2025
$323B
2025
GNI per capita, PPP
$25,810
2025
$52,240
2025
Total reserves including gold
$9.42B
2024
$68.8B
2025
Total reserves ranking
83/177
2024
39/177
2025
Net foreign direct investment
-$526M
2025
-$6.64B
2024
Net inflows of foreign direct investment
$1B
2024
$13.5B
2024
Net outflows of foreign direct investment
$119M
2024
$6.84B
2024
Servicing debt to the IMF, % of GNI
4.91%
2024
n/a
Poverty at national poverty lines
16.9%
2015
16.4%
2021
Gross capital formation, % of GDP
28.7%
2025
21%
2025

GDP per capita map

1x

Data sources: World Bank | Economy & Growth (1985–2025, retrieved 2026-07-08); U.S. Census Bureau (1985–2025, retrieved 2026-07-08).

GeoRank.org/economy/bosnia-and-herzegovina/portugal | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Public Finances in Modern History (1880–1989, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
  4. The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08)
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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.