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Economy of Brazil vs Bulgaria compared: GDP & Debt

Updated on by Georank team

Brazil has a GDP of $2.19T compared to $113B for Bulgaria, ranking 10/197 and 67/197 by economy size, respectively.

Brazil has $1.91T in government debt (87.3% of GDP), compared to $27.3B (24.1% of GDP) in Bulgaria.

Brazil vs Bulgaria GDP by year

Brazil
Bulgaria
1x
Year GDP, current $
Brazil Bulgaria
2024 $2,185,821,648,944 $113,343,355,780
2023 $2,191,131,869,706 $102,199,231,385
2022 $1,951,923,832,084 $90,506,153,294
2021 $1,670,647,464,063 $84,374,613,233
2020 $1,476,107,292,152 $70,486,877,546
2019 $1,873,288,158,839 $68,507,731,354
2018 $1,916,933,708,353 $66,097,226,262
2017 $2,063,514,688,806 $59,167,647,388
2016 $1,795,693,265,999 $53,929,397,039
2015 $1,802,211,999,456 $50,765,918,159
2014 $2,456,043,766,032 $57,080,897,012
2013 $2,472,819,362,044 $55,819,262,375
2012 $2,465,228,293,707 $54,297,052,002
2011 $2,616,156,606,579 $57,681,293,007
2010 $2,208,838,108,484 $50,689,051,382
2009 $1,666,996,294,252 $52,023,801,230
2008 $1,695,855,391,758 $54,480,684,188
2007 $1,397,114,247,189 $44,431,257,129
2006 $1,107,626,711,163 $34,380,536,496
2005 $891,633,826,625 $29,868,657,858
2004 $669,289,321,945 $26,157,743,369
2003 $558,233,724,165 $21,144,957,990
2002 $509,795,270,685 $16,403,043,850
2001 $559,983,704,094 $14,183,446,026
2000 $655,448,188,259 $13,245,990,274
1999 $599,642,075,004 $13,637,098,579
1998 $863,711,007,325 $15,031,055,047
1997 $883,206,452,795 $11,316,127,379
1996 $850,426,433,004 $12,294,964,838
1995 $769,333,330,412 $18,991,484,420
1994 $525,369,851,354 $9,709,240,034
1993 $368,295,778,245 $10,832,064,942
1992 $328,187,960,872 $8,602,887,623
1991 $342,609,231,343 $7,628,738,475
1990 $390,725,626,003 $20,632,090,909
1989 $412,990,820,287 $21,988,444,444
1988 $307,881,930,752 $22,555,941,176
1987 $283,056,836,894 $28,101,000,000
1986 $256,480,852,471 $20,249,294,118
1985 $210,879,844,639 $17,155,421,053
1984 $188,339,974,087 $17,594,944,444
1983 $189,656,506,321 $16,563,666,667
1982 $271,314,113,768 $19,342,000,000
1981 $258,015,174,749 $19,870,000,000
1980 $237,393,489,893 $19,839,230,769
1979 $221,338,204,480 -
1978 $200,278,646,124 -
1977 $176,344,101,402 -
1976 $153,168,949,208 -
1975 $129,203,555,239 -
1974 $109,794,519,728 -
1973 $83,592,275,863 -
1972 $58,434,858,375 -
1971 $48,869,830,902 -
1970 $42,327,664,794 -
1969 $37,171,640,819 -
1968 $33,930,457,425 -
1967 $31,086,389,195 -
1966 $28,283,323,733 -
1965 $22,465,522,884 -
1964 $20,963,733,695 -
1963 $23,287,712,878 -
1962 $19,231,747,852 -
1961 $17,275,940,449 -
1960 $17,030,465,539 -

Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).

GeoRank.org/economy/brazil/bulgaria | CC BY

GDP per capita in Brazil vs Bulgaria by year

Brazil
GDP per capita

GDP per capita, PPP
Bulgaria
GDP per capita

GDP per capita, PPP
1x
Year Current $
Brazil Bulgaria
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2024 $10,311 $22,338 $17,596 $41,969
2023 $10,378 $21,176 $15,853 $38,829
2022 $9,281 $19,877 $13,999 $36,320
2021 $7,973 $18,076 $12,966 $30,959
2020 $7,074 $16,102 $10,760 $27,352
2019 $9,030 $16,070 $10,354 $26,766
2018 $9,301 $15,464 $9,849 $23,998
2017 $10,081 $14,559 $8,697 $22,317
2016 $8,836 $14,309 $7,822 $20,746
2015 $8,936 $14,821 $7,269 $18,896
2014 $12,275 $15,827 $8,070 $17,991
2013 $12,459 $15,722 $7,796 $16,894
2012 $12,522 $15,198 $7,432 $16,327
2011 $13,397 $15,212 $7,850 $15,747
2010 $11,403 $14,452 $6,854 $14,954
2009 $8,679 $13,391 $6,988 $14,188
2008 $8,908 $13,445 $7,271 $14,347
2007 $7,410 $12,673 $5,889 $12,822
2006 $5,934 $11,751 $4,523 $11,406
2005 $4,828 $11,081 $3,900 $10,291
2004 $3,664 $10,526 $3,390 $9,200
2003 $3,091 $9,802 $2,719 $8,416
2002 $2,856 $9,617 $2,093 $7,786
2001 $3,176 $9,304 $1,771 $6,960
2000 $3,767 $9,092 $1,621 $6,424
1999 $3,494 $8,635 $1,661 $5,808
1998 $5,106 $8,599 $1,820 $6,178
1997 $5,299 $8,602 $1,361 $5,751
1996 $5,179 $8,301 $1,470 $6,849
1995 $4,757 $8,097 $2,259 $7,743
1994 $3,299 $7,727 $1,150 $7,338
1993 $2,349 $7,260 $1,279 $7,032
1992 $2,127 $6,869 $1,007 $6,917
1991 $2,258 $6,867 $884 $7,215
1990 $2,620 $6,688 $2,367 $7,548
1989 $2,819 - $2,477 -
1988 $2,141 - $2,511 -
1987 $2,006 - $3,132 -
1986 $1,854 - $2,260 -
1985 $1,556 - $1,915 -
1984 $1,420 - $1,964 -
1983 $1,461 - $1,853 -
1982 $2,138 - $2,169 -
1981 $2,080 - $2,235 -
1980 $1,959 - $2,239 -
1979 $1,870 - - -
1978 $1,733 - - -
1977 $1,562 - - -
1976 $1,390 - - -
1975 $1,201 - - -
1974 $1,045 - - -
1973 $815 - - -
1972 $583 - - -
1971 $500 - - -
1970 $444 - - -
1969 $399 - - -
1968 $374 - - -
1967 $351 - - -
1966 $328 - - -
1965 $268 - - -
1964 $257.3 - - -
1963 $294.2 - - -
1962 $250.2 - - -
1961 $231.6 - - -
1960 $235.3 - - -

Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).

GeoRank.org/economy/brazil/bulgaria | CC BY

Brazil's GDP per capita is $10,311, ranking 85/197, compared to $17,596 in Bulgaria, ranking 64/197. Adjusted for purchasing power (GDP per capita PPP), Brazil ranks 88th at $22,338, while Bulgaria ranks 54th at $41,969.

Economic indicators

Brazil Bulgaria
Gross domestic product
$2.19T
2024
$113B
2024
GDP rank
10/197
2024
67/197
2024
GDP growth
3.42%
2023-2024
3.39%
2023-2024
GDP per capita
$10,311
2024
$17,596
2024
GDP per capita rank
85/197
2024
64/197
2024
GDP per capita, PPP
$22,338
2024
$41,969
2024
GDP per capita PPP rank
88/197
2024
54/197
2024
Government debt
$1.91T
2024
$27.3B
2024
Debt-to-GDP ratio
87.3%
2024
24.1%
2024
Government debt per person
$8,999
2024
$4,237
2024
Government debt per person rank
60/185
2024
90/185
2024
Average annual personal income after taxes
$6,263
2026
$14,263
2026
Market capitalization of domestic companies
$659B
2024
$8.41B
2024
Number of millionaires
433,000
2025
n/a
Number of billionaires
56
2025
2
2025
Income share by richest 10%
40.8%
2023
31.1%
2023
Income share by poorest 10%
1.3%
2023
2.1%
2023
Government expenditure, % of GDP
45.7%
2024
36.7%
2024
Consumer prices inflation
4.4%
2023-2024
2.6%
2023-2024
Central bank interest rate
15%
2025
1.81%
2025
Unemployment rate
6.8%
2024
4.17%
2024
Population
213824938
6359449

Spending and national debt comparison by year

Brazil
Spending

Debt
Bulgaria
Spending

Debt
1x
Year % of GDP
Brazil Bulgaria
Government spending Government debt Government spending Government debt
2024 45.7% 87.3% 36.7% 24.1%
2023 45.3% 84% 37.4% 22.9%
2022 43.4% 83.9% 37.6% 22.5%
2021 40.4% 88.9% 38.4% 23.8%
2020 46.2% 96% 37.6% 22.7%
2019 43% 87.1% 36% 18.4%
2018 44.2% 84.8% 34.4% 20.1%
2017 44.3% 82.7% 32% 22.9%
2016 45.5% 77.4% 32.7% 27%
2015 46.2% 71.7% 37.3% 25.4%
2014 41.4% 61.6% 37.1% 26.3%
2013 39.8% 59.6% 35.5% 17.2%
2012 39.3% 61.6% 32.5% 16.5%
2011 39.4% 60.6% 32% 14.3%
2010 39.5% 62.4% 34.6% 14.1%
2009 40.5% 64.7% 33.8% 14.5%
2008 39.9% 61.4% 33.5% 14.7%
2007 40.4% 63% 33.1% 17.6%
2006 42.6% 64.6% 32.5% 22.6%
2005 41.9% 67% 34% 28.5%
2004 39.7% 68% 34.6% 37.8%
2003 41.3% 71.5% 35.8% 45.4%
2002 44.5% 76.1% 35.1% 53.4%
2001 39.8% 67.3% 36.5% 67.1%
2000 34.5% 62.2% 37.1% 73.3%
1999 39.6% 44.5% 36.2% 78.7%
1998 40.9% 38.9% 30.6% 67.3%
1997 38.6% 31.8% 32.9% 88.4%
1996 38.2% 30.7% 44% 113.8%
1995 - 28% 45.4% 72%
1994 - 30% - -
1993 - 32.6% - -
1992 - 37.1% - -
1991 - 38.1% - -
1990 - 40.6% - -
1989 - 40.2% - -
1988 - 46.9% - -
1987 - 50.3% - -
1986 11.7% 49.4% - -
1985 11.1% 52.6% - -
1984 10% 55.8% - -
1983 9.7% 51.5% - -
1982 8.1% 32.8% - -
1981 7.8% 34.6% - -
1980 6.8% 39.7% - -
1979 9% 36.6% - -
1978 10.2% 37% - -
1977 10.4% 31% - -
1976 10.6% 31.8% - -
1975 10.7% 27.7% - -
1974 10.5% 25.7% - -
1973 11% 22.4% - -
1972 12.6% 22.5% - -
1971 11.7% 17.9% - -
1970 11.4% 17% - -
1969 11.2% 16.5% - -
1968 14.4% 15.8% - -
1967 13.5% 13.8% - -
1966 14.6% 19.6% - -
1965 14% 17.6% - -
1964 25.4% 22.2% - -
1963 22.8% 20.4% - -
1962 23.1% 23.7% - -
1961 12% 25.7% - -
1960 13.7% 22.3% - -

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1998–2024, retrieved 2026-02-20); International Monetary Fund (IMF) | Public Finances in Modern History (1960–2000, retrieved 2026-02-20).

GeoRank.org/economy/brazil/bulgaria | CC BY

In 2024, Brazil's government spending was $998B, accounting for 45.7% of its GDP, while Bulgaria spent $41.5B, or 36.7% of GDP.

Debt-to-GDP ratio is 87.3% in Brazil and 24.1% in Bulgaria, ranking 38/185 and 169/185, respectively.

Government deficit by year

Deficit/surplus
Brazil

Bulgaria
1x
Year Deficit/surplus, % of GDP
Brazil Bulgaria
2024 -6.19% -3.04%
2023 -7.71% -3.03%
2022 -3.96% -0.8%
2021 -2.63% -2.8%
2020 -11.6% -2.92%
2019 -4.86% -0.96%
2018 -6.99% 0.12%
2017 -7.97% 0.82%
2016 -7.99% 1.54%
2015 -9.28% -2.77%
2014 -6.27% -3.65%
2013 -3.42% -1.75%
2012 -2.35% -0.43%
2011 -2.74% -1.83%
2010 -3.55% -3.77%
2009 -4.23% -0.86%
2008 -2.39% 2.73%
2007 -2.66% 3.09%
2006 -4.87% 3.22%
2005 -3.36% 2.19%
2004 -2.95% 1.59%
2003 -5.4% 0.003%
2002 -4.15% -0.61%
2001 -3.47% -0.58%
2000 -3.32% -0.6%
1999 -5.17% 0.15%
1998 -7.22% 1.08%
1997 -5.6% 0.83%
1996 -5.35% -10.1%
1995 - -7.98%
1994 - -
1993 - -
1992 - -
1991 - -
1990 - -
1989 - -
1988 - -
1987 - -
1986 -1.6% -
1985 -1.3% -
1984 -0.4% -
1983 0.1% -
1982 1.4% -
1981 1% -
1980 2.5% -
1979 0.4% -
1978 -0.1% -
1977 0.1% -
1976 0.1% -
1975 0% -
1974 0.6% -
1973 0.1% -
1972 -0.1% -
1971 -0.3% -
1970 -0.4% -
1969 -0.6% -
1968 -1.6% -
1967 -2.1% -
1966 -1.3% -
1965 -2% -
1964 -8.79% -
1963 -5.78% -
1962 -6.82% -
1961 -2.93% -
1960 -3.85% -
1959 -0.18% -
1958 -0.76% -
1957 -0.29% -
1956 -0.14% -
1955 -0.62% -
1954 -0.49% -
1953 -1.26% -
1952 0.64% -
1951 0.87% -
1950 -1.58% -
1949 -1.22% -
1948 0.002% -
1947 0.25% -
1946 -1.78% -
1945 -2.87% -
1944 -2.37% 0%
1943 -0.75% 0%
1942 -2.55% -0.3%
1941 -2.15% 3.96%
1940 -1.13% 0.75%
1939 -1.2% 0.72%
1938 -0.59% 1%
1937 -1.62% 1.41%
1936 -0.27% 1.17%
1935 -0.5% 1.34%
1934 -2.28% -0.12%
1933 -1.56% -0.56%
1932 -6.47% -2.14%
1931 -1.56% -3.07%
1930 -3.58% -5.48%
1929 -0.09% -6.67%
1928 0.57% -1.09%
1927 0.12% -0.02%
1926 -0.76% -0.25%
1925 -0.07% -0.97%
1924 -0.45% 1.26%
1923 -1.94% -
1922 -3.8% -
1921 -2.98% -
1920 -3.11% -
1919 -3.69% -
1918 -4.51% -
1917 -4.8% -
1916 -4.35% -
1915 -6.33% -
1914 -7.32% -
1913 -1.91% -
1912 -3.05% -
1911 -2.15% -
1910 -2.06% -
1909 -1.62% -
1908 -1.89% -
1907 0.38% -
1906 0.28% -
1905 0.96% -
1904 -0.62% -
1903 1.79% -
1902 1.59% -
1901 -2.46% -
1900 -5.57% -
1899 -2.13% -
1898 -14% -
1897 -2.38% -
1896 -0.79% -
1895 -1.33% -
1894 -4.11% -
1893 -1.77% -
1892 -2.6% -
1891 0.51% -
1890 -3.02% -
1889 -3.79% -
1888 0.63% -
1887 -0.76% -
1886 -3.8% -
1885 -5.71% -
1884 -3.89% -
1883 -3.33% -
1882 -1.58% -
1881 -1.9% -
1880 -4.84% -

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1880–2000, retrieved 2026-02-20); International Monetary Fund (IMF) | Fiscal Monitor (1998–2024, retrieved 2026-02-20).

GeoRank.org/economy/brazil/bulgaria | CC BY

In 2024, Brazil's government deficit, the difference between spending and revenue, was $135B, equivalent to 6.19% of GDP. This compares to Bulgaria's deficit of $3.44B, or 3.04% of GDP.

Over the past 30 years, Brazil recorded a fiscal deficit in 29 of those years, while Bulgaria ran a deficit in 18 years. On average, Brazil posted an annual deficit equal to 5.09% of GDP, compared to deficit of 1.04% of GDP for Bulgaria.

Inflation comparison by year

Inflation
Brazil

Bulgaria
1x
Year Consumer prices inflation
Brazil Bulgaria
2024 4.4% 2.6%
2023 4.6% 8.6%
2022 9.3% 13%
2021 8.3% 2.8%
2020 3.2% 1.2%
2019 3.7% 2.5%
2018 3.7% 2.6%
2017 3.4% 1.2%
2016 8.7% -1.3%
2015 9% -1.1%
2014 6.3% -1.6%
2013 6.2% 0.4%
2012 5.4% 2.4%
2011 6.6% 3.4%
2010 5% 3%
2009 4.9% 2.5%
2008 5.7% 12%
2007 3.6% 7.6%
2006 4.2% 7.4%
2005 6.9% 6%
2004 6.6% 6.1%
2003 14.7% 2.3%
2002 8.4% 5.8%
2001 6.8% 7.4%
2000 7% 10.3%
1999 4.9% 2.6%
1998 3.2% 18.7%
1997 6.9% 1,061%

Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2024, retrieved 2026-02-20).

GeoRank.org/economy/brazil/bulgaria | CC BY

Over the past 28 years, Brazil has recorded an average annual inflation rate of 6.13%, compared with 42.5% in Bulgaria. In 2024, inflation was 4.4% in Brazil and 2.6% in Bulgaria.

Top exports between countries

Brazil
Export category Export value
Raw materials & minerals $404M
Processed food, beverages & tobacco $45.5M
Wood & paper products $6.56M
Machinery & equipment $3.62M
Metals $2.18M
Raw agricultural goods $1.77M
Textiles & consumer goods $1.36M
Animal & marine products $1.32M
Weapons & explosives $381K
Chemicals & pharma $365K
Bulgaria
Export category Export value
Machinery & equipment $24.2M
Chemicals & pharma $16.8M
Processed food, beverages & tobacco $9.4M
Textiles & consumer goods $4.3M
Raw agricultural goods $3.28M
Transport & tourism services $2.39M
Raw materials & minerals $1.92M
Metals $543K
Weapons & explosives $296K
Manufacturing & construction services $216K

Balance of trade

Brazil Bulgaria
Current account balance
-$66.2B
2024
-$1.74B
2024
Current account balance ranking
188/190
2024
138/190
2024
Current account balance, % of GDP
-3.03%
2024
-1.54%
2024
Goods imports
$274B
2024
$52.8B
2024
Goods exports
$340B
2024
$47.3B
2024
Service imports
$103B
2024
$8.26B
2024
Service exports
$48.1B
2024
$16.6B
2024
Imports of goods and services, % of GDP
17.6%
2024
53.9%
2024
Exports of goods and services, % of GDP
17.9%
2024
56.4%
2024

Economic freedom indices

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

Brazil Bulgaria
Economic freedom 52.4 68.9
Economic freedom ranking 148/197 44/197
Property rights 49.2 75.8
Government integrity 37.2 48.4
Judicial effectiveness 55.6 58.5
Tax burden 70.6 89.1
Government spending 39.8 58.4
Fiscal health 28 90.4
Business freedom 65.7 78.2
Labor freedom 57 62.4
Monetary freedom 76 75.8
Trade freedom 69 79.4
Investment freedom 40 60
Financial freedom 40 50

Economic freedom comparison by year

Brazil
Bulgaria
1x
Year Economic freedom index
Brazil Bulgaria
2026 52.4 68.9
2025 55.1 68.8
2024 53.2 68.5
2023 53.5 69.3
2022 53.3 71
2021 53.4 70.4
2020 53.7 70.2
2019 51.9 69
2018 51.4 68.3
2017 52.9 67.9
2016 56.5 65.9
2015 56.6 66.8
2014 56.9 65.7
2013 57.7 65
2012 57.9 64.7
2011 56.3 64.9
2010 55.6 62.3
2009 56.7 64.6
2008 56.2 63.7
2007 56.2 62.7
2006 60.9 64.1
2005 61.7 62.3
2004 62 59.2
2003 63.4 57
2002 61.5 57.1
2001 61.9 51.9
2000 61.1 47.3
1999 61.3 46.2
1998 52.3 45.7
1997 52.6 47.6
1996 48.1 48.6
1995 51.4 50

Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09).

GeoRank.org/economy/brazil/bulgaria | CC BY

The Economic Freedom Index for Brazil is 52.4, ranking 148/197, compared to 68.9 for Bulgaria, ranking 44/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Brazil Bulgaria
Services, % of GDP
59.2%
2024
63.8%
2024
Industry, % of GDP
20.9%
2024
21.1%
2024
Agriculture, forestry, and fishing, % of GDP
5.75%
2024
2.35%
2024
GNI, Atlas method
$2.11T
2024
$99B
2024
GNI per capita, PPP
$21,590
2024
$39,850
2024
Total reserves including gold
$330B
2024
$43.7B
2024
Total reserves ranking
11/177
2024
47/177
2024
Net foreign direct investment
-$47.8B
2024
-$2.22B
2024
Net inflows of foreign direct investment
$74.1B
2024
$3.55B
2024
Net outflows of foreign direct investment
$26.3B
2024
$1.13B
2024
Servicing debt to the IMF, % of GNI
5.4%
2024
6.8%
2024
Poverty at national poverty lines
4.2%
2020
21.7%
2023
Gross capital formation, % of GDP
17%
2024
20.4%
2024

GDP per capita map

1x

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/brazil/bulgaria | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06)
  2. International Monetary Fund (IMF) | Public Finances in Modern History (1880–2000, retrieved 2026-02-20)
  3. International Monetary Fund (IMF) | Fiscal Monitor (1998–2024, retrieved 2026-02-20)
  4. The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09)
  5. U.S. Census Bureau (1985–2024, retrieved 2026-02-08)
  6. TradeMap (2023–2024, retrieved 2026-02-08)
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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.