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Economy of Brazil vs Equatorial Guinea compared: GDP & Debt

Updated on by Georank

Brazil has a GDP of $2.28T compared to $12.8B for Equatorial Guinea, ranking 11/197 and 150/197 by economy size, respectively.

Brazil has $2.13T in government debt (93.3% of GDP), compared to $5.21B (40.6% of GDP) in Equatorial Guinea.

Brazil vs Equatorial Guinea GDP by year

Brazil
Equatorial Guinea
1x
Year GDP, current $
Brazil Equatorial Guinea
2025 $2,279,920,092,492 $12,823,210,426
2024 $2,185,821,610,689 $13,254,388,261
2023 $2,191,131,765,685 $12,541,814,273
2022 $1,951,923,942,083 $13,687,643,436
2021 $1,670,647,398,905 $12,215,878,033
2020 $1,476,107,231,310 $9,893,816,008
2019 $1,873,288,205,060 $11,364,133,550
2018 $1,916,933,898,011 $13,097,012,134
2017 $2,063,514,977,366 $12,200,913,879
2016 $1,795,693,482,853 $11,240,808,848
2015 $1,802,212,206,815 $13,185,496,881
2014 $2,456,043,727,199 $21,765,453,082
2013 $2,472,819,535,557 $21,948,834,284
2012 $2,465,227,802,807 $22,388,344,144
2011 $2,616,156,223,918 $21,357,343,669
2010 $2,208,837,745,101 $16,314,443,436
2009 $1,666,996,438,581 $15,027,795,173
2008 $1,695,855,083,498 $19,749,893,536
2007 $1,397,114,486,369 $13,071,718,759
2006 $1,107,626,541,435 $10,086,528,699
2005 $891,633,839,894 $8,217,369,093
2004 $669,289,424,806 $4,410,764,339
2003 $558,233,745,652 $2,484,745,935
2002 $509,795,273,807 $1,806,742,742
2001 $559,983,634,799 $1,461,139,022
2000 $655,448,231,984 $1,045,998,496
1999 $599,642,024,320 $621,117,886
1998 $863,710,759,256 $370,687,634
1997 $883,206,179,730 $442,337,871
1996 $850,426,432,992 $232,463,023
1995 $769,333,050,987 $141,853,361
1994 $525,369,467,296 $100,807,003
1993 $368,292,034,381 $136,047,906
1992 $328,191,909,882 $134,707,184
1991 $342,534,090,909 $110,906,029
1990 $384,959,818,182 $112,119,411
1989 $412,990,820,287 $88,265,975
1988 $307,881,930,752 $100,534,657
1987 $283,056,836,894 $93,345,860
1986 $256,480,852,471 $76,407,396
1985 $210,879,844,639 $62,118,570
1984 $188,339,974,087 $50,320,914
1983 $189,656,506,321 $44,442,457
1982 $271,314,113,768 $44,294,648
1981 $258,015,174,749 $36,731,423
1980 $237,393,489,893 $50,642,881
1979 $221,338,204,480 -
1978 $200,278,646,124 -
1977 $176,344,101,402 $103,987,520
1976 $153,168,949,208 $103,653,050
1975 $129,203,555,239 $104,295,643
1974 $109,794,519,728 $94,159,863
1973 $83,592,275,863 $81,203,227
1972 $58,434,858,375 $65,429,198
1971 $48,869,830,902 $64,946,955
1970 $42,327,664,794 $66,331,429
1969 $37,171,640,819 $67,225,714
1968 $33,930,457,425 $67,514,286
1967 $31,086,389,195 $72,317,447
1966 $28,283,323,733 $69,110,000
1965 $22,465,522,884 $64,748,333
1964 $20,963,733,695 $51,915,000
1963 $23,287,712,878 $44,266,667
1962 $19,231,747,852 $37,253,333
1961 $17,275,940,449 -
1960 $17,030,465,539 -

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

GeoRank.org/economy/brazil/equatorial-guinea | CC BY

GDP per capita in Brazil vs Equatorial Guinea by year

Brazil
GDP per capita

GDP per capita, PPP
Equatorial Guinea
GDP per capita

GDP per capita, PPP
1x
Year Current $
Brazil Equatorial Guinea
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $10,713 - $6,615 -
2024 $10,311 $22,338 $7,004 $17,567
2023 $10,378 $21,176 $6,788 $17,412
2022 $9,281 $19,877 $7,589 $18,140
2021 $7,973 $18,076 $6,946 $16,821
2020 $7,074 $16,102 $5,764 $13,677
2019 $9,030 $16,070 $6,804 $16,451
2018 $9,301 $15,464 $8,102 $18,413
2017 $10,081 $14,559 $7,809 $18,435
2016 $8,836 $14,309 $7,453 $16,649
2015 $8,936 $14,821 $9,069 $19,479
2014 $12,275 $15,827 $15,549 $27,177
2013 $12,459 $15,722 $16,304 $27,910
2012 $12,522 $15,198 $17,309 $30,012
2011 $13,397 $15,212 $17,198 $27,242
2010 $11,403 $14,452 $13,720 $26,168
2009 $8,679 $13,391 $13,233 $29,722
2008 $8,908 $13,445 $18,211 $30,523
2007 $7,410 $12,673 $12,617 $26,611
2006 $5,934 $11,751 $10,185 $23,511
2005 $4,828 $11,081 $8,674 $22,137
2004 $3,664 $10,526 $4,901 $19,354
2003 $3,091 $9,802 $2,931 $14,496
2002 $2,856 $9,617 $2,264 $13,255
2001 $3,176 $9,304 $1,949 $11,627
2000 $3,767 $9,092 $1,487 $7,420
1999 $3,494 $8,635 $931 $6,470
1998 $5,106 $8,599 $578 $5,280
1997 $5,299 $8,602 $717 $4,387
1996 $5,179 $8,301 $392 $1,793
1995 $4,757 $8,097 $248.3 $1,098
1994 $3,299 $7,727 $183.2 $951
1993 $2,349 $7,260 $256.7 $828
1992 $2,127 $6,869 $263.7 $756
1991 $2,258 $6,867 $225.3 $569
1990 $2,581 $6,688 $236.4 $577
1989 $2,819 - $193.2 -
1988 $2,141 - $228.7 -
1987 $2,006 - $220.9 -
1986 $1,854 - $188.8 -
1985 $1,556 - $161.1 -
1984 $1,420 - $137.9 -
1983 $1,461 - $129.4 -
1982 $2,138 - $137.5 -
1981 $2,080 - $121.1 -
1980 $1,959 - $175.5 -
1979 $1,870 - - -
1978 $1,733 - - -
1977 $1,562 - $376 -
1976 $1,390 - $369 -
1975 $1,201 - $362 -
1974 $1,045 - $319 -
1973 $815 - $268.6 -
1972 $583 - $211.4 -
1971 $500 - $205.6 -
1970 $444 - $206.8 -
1969 $399 - $208.4 -
1968 $374 - $211.7 -
1967 $351 - $231.9 -
1966 $328 - $226.7 -
1965 $268 - $217.1 -
1964 $257.3 - $177.8 -
1963 $294.2 - $154.8 -
1962 $250.2 - $132.9 -
1961 $231.6 - - -
1960 $235.3 - - -

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

GeoRank.org/economy/brazil/equatorial-guinea | CC BY

Brazil's GDP per capita is $10,713, ranking 85/197, compared to $6,615 in Equatorial Guinea, ranking 107/197. Adjusted for purchasing power (GDP per capita PPP), Brazil ranks 88th at $22,338, while Equatorial Guinea ranks 106th at $17,567.

Economic indicators

Brazil Equatorial Guinea
Gross domestic product
$2.28T
2025
$12.8B
2025
GDP rank
11/197
2025
150/197
2025
GDP growth
2.29%
2024-2025
-5.85%
2024-2025
GDP per capita
$10,713
2025
$6,615
2025
GDP per capita rank
85/197
2025
107/197
2025
GDP per capita, PPP
$22,338
2024
$17,567
2024
GDP per capita PPP rank
88/197
2024
106/197
2024
Government debt
$2.13T
2025
$5.21B
2025
Debt-to-GDP ratio
93.3%
2025
40.6%
2025
Government debt per person
$9,999
2025
$2,686
2025
Government debt per person rank
60/185
2025
109/185
2025
Average annual personal income after taxes
$6,555
2026
$4,723
2026
Market capitalization of domestic companies
$871B
2025
n/a
Number of millionaires
386,000
2026
n/a
Number of billionaires
70
2026
n/a
Income share by richest 10%
39.3%
2024
29.1%
2022
Income share by poorest 10%
1.3%
2024
2.6%
2022
Government expenditure, % of GDP
47.4%
2025
20.7%
2025
Consumer prices inflation
5%
2024-2025
2.8%
2024-2025
Central bank interest rate
14.5%
2026
n/a
Unemployment rate
5.83%
2025
8.6%
2014
Population
213964342
2008950

Spending and national debt comparison by year

Brazil
Spending

Debt
Equatorial Guinea
Spending

Debt
1x
Year % of GDP
Brazil Equatorial Guinea
Government spending Government debt Government spending Government debt
2025 47.4% 93.3% 20.7% 40.6%
2024 45.5% 87% 18.5% 36.4%
2023 45.3% 84% 19.2% 39.1%
2022 43.4% 83.9% 14.8% 29.8%
2021 40.4% 88.9% 12.7% 42.3%
2020 46.2% 96% 16.2% 49.4%
2019 43% 87.1% 16.8% 43.2%
2018 44.2% 84.8% 19.1% 40.6%
2017 44.3% 82.7% 20.1% 36.2%
2016 45.5% 77.4% 27.8% 41.1%
2015 46.2% 71.7% 41.6% 31.7%
2014 41.4% 61.6% 31.6% 12.6%
2013 39.8% 59.6% 29.3% 6.27%
2012 39.3% 61.6% 35.2% 7.1%
2011 39.4% 60.6% 27.5% 7.17%
2010 39.5% 62.4% 31.2% 7.89%
2009 40.5% 64.7% 39.8% 4.34%
2008 39.9% 61.4% 19.9% 0.49%
2007 40.4% 63% 19.7% 0.75%
2006 42.6% 64.6% 18.1% 1.22%
2005 41.9% 67% 14.1% 2.85%
2004 39.7% 68% 15.5% 4.54%
2003 41.3% 71.5% 11.8% 6.77%
2002 44.5% 76.1% 11.3% 19.4%
2001 39.8% 67.3% 13.5% 25.5%
2000 34.5% 62.2% 22.6% 36.6%
1999 39.6% 44.5% 18.7% 60.5%
1998 40.9% 38.9% 35.1% 59.2%
1997 38.6% 31.8% 14.8% 46.3%
1996 38.2% 30.7% 22.9% 91.2%
1995 - 28% 141.5% 136.9%
1994 - 30% 510% 216%
1993 - 32.6% 256.3% 152.6%
1992 - 37.1% 595% 136.9%
1991 - 38.1% 284.5% 169.5%
1990 - 40.6% 212.9% 157%
1989 - 40.2% 116.8% 187%
1988 - 46.9% 227.9% 154.5%
1987 - 50.3% 183% 141.3%
1986 11.7% 49.4% 119% 152.5%
1985 11.1% 52.6% 115.4% 183.8%
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 (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–2000, retrieved 2026-07-08).

GeoRank.org/economy/brazil/equatorial-guinea | CC BY

In 2025, Brazil's government spending was $1.08T, accounting for 47.4% of its GDP, while Equatorial Guinea spent $2.65B, or 20.7% of GDP.

Debt-to-GDP ratio is 93.3% in Brazil and 40.6% in Equatorial Guinea, ranking 29/185 and 132/185, respectively.

Government deficit by year

Deficit/surplus
Brazil

Equatorial Guinea
1x
Year Deficit/surplus, % of GDP
Brazil Equatorial Guinea
2025 -8.07% -2.55%
2024 -6.17% -0.55%
2023 -7.71% 2.39%
2022 -3.96% 11.7%
2021 -2.63% 2.65%
2020 -11.6% -1.77%
2019 -4.86% 1.82%
2018 -6.99% 0.52%
2017 -7.97% -2.59%
2016 -7.99% -10.9%
2015 -9.28% -15.1%
2014 -6.27% -7.54%
2013 -3.42% -4.4%
2012 -2.35% -7.24%
2011 -2.74% 0.83%
2010 -3.55% -4.53%
2009 -4.23% -6.47%
2008 -2.39% 14.6%
2007 -2.66% 17.2%
2006 -4.87% 21.8%
2005 -3.36% 18.5%
2004 -2.95% 9.22%
2003 -5.4% 9.99%
2002 -4.15% 17.6%
2001 -3.47% 14.9%
2000 -3.32% -2.67%
1999 -5.17% -0.19%
1998 -7.22% -7.65%
1997 -5.6% 3.21%
1996 -5.35% -6.36%
1995 - -123.4%
1994 - -487%
1993 - -217.9%
1992 - -557%
1991 - -236%
1990 - -160.2%
1989 - -76.2%
1988 - -208.5%
1987 - -158%
1986 -1.6% -97.3%
1985 -1.3% -89.3%
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% -
1943 -0.75% -
1942 -2.55% -
1941 -2.15% -
1940 -1.13% -
1939 -1.2% -
1938 -0.59% -
1937 -1.62% -
1936 -0.27% -
1935 -0.5% -
1934 -2.28% -
1933 -1.56% -
1932 -6.47% -
1931 -1.56% -
1930 -3.58% -
1929 -0.09% -
1928 0.57% -
1927 0.12% -
1926 -0.76% -
1925 -0.07% -
1924 -0.45% -
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 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/brazil/equatorial-guinea | CC BY

In 2025, Brazil's government deficit, the difference between spending and revenue, was $184B, equivalent to 8.07% of GDP. This compares to Equatorial Guinea's deficit of $327M, or 2.55% of GDP.

Over the past 41 years, Brazil recorded a fiscal deficit in 32 of those years, while Equatorial Guinea ran a deficit in 26 years. On average, Brazil posted an annual deficit equal to 4.96% of GDP, compared to deficit of 57.2% of GDP for Equatorial Guinea.

Inflation comparison by year

Inflation
Brazil

Equatorial Guinea
1x
Year Consumer prices inflation
Brazil Equatorial Guinea
2025 5% 2.8%
2024 4.4% 3.4%
2023 4.6% 2.4%
2022 9.3% 4.9%
2021 8.3% -0.1%
2020 3.2% 4.8%
2019 3.7% 1.2%
2018 3.7% 1.3%
2017 3.4% 0.7%
2016 8.7% 1.4%
2015 9% 1.7%
2014 6.3% 4.3%
2013 6.2% 3.2%
2012 5.4% 3.4%
2011 6.6% 4.8%
2010 5% 5.3%
2009 4.9% 5.7%
2008 5.7% 4.7%
2007 3.6% 2.8%
2006 4.2% 4.5%
2005 6.9% 5.6%
2004 6.6% 4.2%
2003 14.7% 7.3%
2002 8.4% 7.6%
2001 6.8% 8.7%
2000 7% 4.8%
1999 4.9% 0.4%
1998 3.2% 7.9%
1997 6.9% 3%

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

GeoRank.org/economy/brazil/equatorial-guinea | CC BY

Over the past 29 years, Brazil has recorded an average annual inflation rate of 6.09%, compared with 3.89% in Equatorial Guinea. In 2025, inflation was 5% in Brazil and 2.8% in Equatorial Guinea.

Top exports between countries

Brazil
Export category Export value
Animal & marine products $30.9M
Processed food, beverages & tobacco $9.16M
Metals $7.88M
Machinery & equipment $452K
Textiles & consumer goods $312K
Raw materials & minerals $283K
Chemicals & pharma $67K
Wood & paper products $50K
Raw agricultural goods $47K
Miscellaneous $46K
Equatorial Guinea
Export category Export value
Raw materials & minerals $38.9M

Balance of trade

Brazil Equatorial Guinea
Current account balance
-$66.7B
2025
-$344M
1996
Current account balance ranking
188/190
2025
98/190
1996
Current account balance, % of GDP
-2.93%
2025
-148%
1996
Goods imports
$291B
2025
$292M
1996
Goods exports
$351B
2025
$175M
1996
Service imports
$105B
2025
$185M
1996
Service exports
$54.4B
2025
$4.88M
1996
Imports of goods and services, % of GDP
17.5%
2025
28.4%
2025
Exports of goods and services, % of GDP
17.8%
2025
46.5%
2025

Economic freedom indices

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

Brazil Equatorial Guinea
Economic freedom 52.4 47.4
Economic freedom ranking 148/197 175/197
Property rights 49.2 16.9
Government integrity 37.2 6.9
Judicial effectiveness 55.6 7.2
Tax burden 70.6 81
Government spending 39.8 90.8
Fiscal health 28 97.3
Business freedom 65.7 35.9
Labor freedom 57 45.2
Monetary freedom 76 73.5
Trade freedom 69 43.6
Investment freedom 40 40
Financial freedom 40 30

Economic freedom comparison by year

Brazil
Equatorial Guinea
1x
Year Economic freedom index
Brazil Equatorial Guinea
2026 52.4 47.4
2025 55.1 47.7
2024 53.2 47.7
2023 53.5 48.3
2022 53.3 47.2
2021 53.4 49.2
2020 53.7 48.3
2019 51.9 41
2018 51.4 42
2017 52.9 45
2016 56.5 43.7
2015 56.6 40.4
2014 56.9 44.4
2013 57.7 42.3
2012 57.9 42.8
2011 56.3 47.5
2010 55.6 48.6
2009 56.7 51.3
2008 56.2 51.6
2007 56.2 53.2
2006 60.9 51.5
2005 61.7 53.3
2004 62 53.3
2003 63.4 53.1
2002 61.5 46.4
2001 61.9 47.9
2000 61.1 45.6
1999 61.3 45.1
1998 52.3 -
1997 52.6 -
1996 48.1 -
1995 51.4 -

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

GeoRank.org/economy/brazil/equatorial-guinea | CC BY

The Economic Freedom Index for Brazil is 52.4, ranking 148/197, compared to 47.4 for Equatorial Guinea, ranking 175/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Brazil Equatorial Guinea
Services, % of GDP
59.7%
2025
55.5%
2025
Industry, % of GDP
20.1%
2025
41.4%
2025
Agriculture, forestry, and fishing, % of GDP
6.09%
2025
3.21%
2025
GNI, Atlas method
$2.25T
2025
$11.4B
2025
GNI per capita, PPP
$22,670
2025
$14,610
2025
Total reserves including gold
$359B
2025
$1.08B
2024
Total reserves ranking
13/177
2025
141/177
2024
Net foreign direct investment
-$47.5B
2025
-$376M
1996
Net inflows of foreign direct investment
$74.1B
2024
$188M
2024
Net outflows of foreign direct investment
$26.3B
2024
$154M
2024
Servicing debt to the IMF, % of GNI
5.4%
2024
n/a
Poverty at national poverty lines
4.2%
2020
50.7%
2022
Gross capital formation, % of GDP
17.1%
2025
-3.68%
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/brazil/equatorial-guinea | 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 (1880–2000, 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.