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Economy of Bulgaria vs Switzerland compared: GDP & Debt

Updated on by Georank

Bulgaria has a GDP of $131B compared to $1.04T for Switzerland, ranking 63/197 and 20/197 by economy size, respectively.

Bulgaria has $35.4B in government debt (27.1% of GDP), compared to $411B (39.4% of GDP) in Switzerland.

Bulgaria vs Switzerland GDP by year

Bulgaria
Switzerland
1x
Year GDP, current $
Bulgaria Switzerland
2025 $130,777,235,530 $1,043,529,899,251
2024 $113,349,149,167 $969,919,786,395
2023 $102,204,457,335 $928,435,275,852
2022 $90,510,784,778 $858,479,038,994
2021 $84,378,926,047 $840,710,023,481
2020 $70,490,478,088 $756,096,180,222
2019 $68,511,235,459 $736,384,764,157
2018 $66,100,606,677 $740,766,531,454
2017 $59,170,671,046 $706,660,443,624
2016 $53,932,152,154 $698,607,778,795
2015 $50,768,512,173 $706,199,008,879
2014 $57,083,817,240 $741,168,119,617
2013 $55,822,115,861 $718,748,402,260
2012 $54,299,825,600 $697,882,536,677
2011 $57,684,243,980 $727,231,637,102
2010 $50,691,645,231 $609,999,593,542
2009 $52,026,461,290 $563,659,557,945
2008 $54,483,464,293 $574,703,945,157
2007 $44,433,521,725 $498,993,845,385
2006 $34,382,295,487 $448,364,681,767
2005 $29,870,182,425 $424,511,048,024
2004 $26,159,078,743 $409,012,909,530
2003 $21,146,038,619 $366,563,952,625
2002 $16,403,880,783 $313,930,961,761
2001 $14,184,170,319 $290,160,142,214
2000 $13,246,669,554 $282,327,351,966
1999 $13,637,793,854 $301,911,268,140
1998 $15,031,821,788 $306,907,741,068
1997 $11,316,706,412 $298,868,250,534
1996 $12,295,588,924 $345,373,647,249
1995 $18,992,388,645 $358,152,520,085
1994 $9,709,230,161 $305,916,331,798
1993 $10,832,041,595 $276,339,744,180
1992 $8,602,874,120 $284,139,428,246
1991 $7,628,764,750 $272,953,645,746
1990 $20,726,605,649 $269,768,238,555
1989 $21,746,286,447 $211,241,694,480
1988 $23,003,003,708 $218,788,504,066
1987 $28,428,718,531 $202,238,567,597
1986 $20,261,546,635 $161,487,171,049
1985 $17,562,270,447 $112,652,623,418
1984 $17,410,894,971 $111,104,641,869
1983 $16,959,180,922 $116,361,728,836
1982 $19,803,624,625 $116,776,899,473
1981 $20,055,685,481 $113,936,168,924
1980 $20,039,544,133 $124,404,609,417
1979 - $116,702,524,208
1978 - $103,821,687,919
1977 - $74,237,819,014
1976 - $69,508,364,538
1975 - $66,452,559,176
1974 - $57,963,469,607
1973 - $50,296,651,921
1972 - $37,399,508,287
1971 - $30,492,832,676
1970 - $25,374,750,743
1969 - $22,780,211,812
1968 - $21,024,203,656
1967 - $19,689,329,510
1966 - $18,290,928,227
1965 - $17,033,079,428
1964 - $16,071,715,835
1963 - $14,499,109,270
1962 - $13,185,384,691
1961 - $11,889,851,950
1960 - $10,569,129,806

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

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

GDP per capita in Bulgaria vs Switzerland by year

Bulgaria
GDP per capita

GDP per capita, PPP
Switzerland
GDP per capita

GDP per capita, PPP
1x
Year Current $
Bulgaria Switzerland
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $20,328 - $114,769 -
2024 $17,597 $41,969 $107,702 $96,498
2023 $15,854 $38,829 $104,450 $95,142
2022 $14,000 $36,320 $97,809 $94,421
2021 $12,967 $30,959 $96,583 $81,001
2020 $10,761 $27,352 $87,530 $72,998
2019 $10,354 $26,766 $85,873 $73,732
2018 $9,850 $23,998 $87,002 $70,689
2017 $8,697 $22,317 $83,610 $68,194
2016 $7,823 $20,746 $83,432 $67,351
2015 $7,269 $18,896 $85,265 $65,265
2014 $8,070 $17,991 $90,512 $63,417
2013 $7,796 $16,894 $88,851 $61,656
2012 $7,432 $16,327 $87,270 $59,441
2011 $7,850 $15,747 $91,910 $57,494
2010 $6,854 $14,954 $77,956 $54,426
2009 $6,989 $14,188 $72,788 $52,999
2008 $7,272 $14,347 $75,148 $53,809
2007 $5,889 $12,822 $66,082 $50,928
2006 $4,523 $11,406 $59,910 $46,266
2005 $3,900 $10,291 $57,080 $41,525
2004 $3,390 $9,200 $55,350 $40,171
2003 $2,720 $8,416 $49,947 $38,732
2002 $2,093 $7,786 $43,094 $38,705
2001 $1,771 $6,960 $40,134 $37,819
2000 $1,621 $6,424 $39,298 $36,703
1999 $1,661 $5,808 $42,261 $34,743
1998 $1,821 $6,178 $43,166 $33,860
1997 $1,361 $5,751 $42,160 $32,736
1996 $1,470 $6,849 $48,838 $31,509
1995 $2,259 $7,743 $50,869 $30,842
1994 $1,150 $7,338 $43,741 $30,265
1993 $1,279 $7,032 $39,828 $29,495
1992 $1,007 $6,917 $41,327 $29,113
1991 $884 $7,215 $40,140 $28,792
1990 $2,377 $7,548 $40,171 $28,461
1989 $2,450 - $31,780 -
1988 $2,561 - $33,183 -
1987 $3,169 - $30,899 -
1986 $2,262 - $24,828 -
1985 $1,960 - $17,411 -
1984 $1,943 - $17,247 -
1983 $1,897 - $18,128 -
1982 $2,221 - $18,271 -
1981 $2,256 - $17,931 -
1980 $2,261 - $19,686 -
1979 - - $18,541 -
1978 - - $16,528 -
1977 - - $11,819 -
1976 - - $11,029 -
1975 - - $10,484 -
1974 - - $9,140 -
1973 - - $7,974 -
1972 - - $5,973 -
1971 - - $4,908 -
1970 - - $4,105 -
1969 - - $3,712 -
1968 - - $3,465 -
1967 - - $3,286 -
1966 - - $3,091 -
1965 - - $2,908 -
1964 - - $2,776 -
1963 - - $2,546 -
1962 - - $2,366 -
1961 - - $2,188 -
1960 - - $1,984 -

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

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

Bulgaria's GDP per capita is $20,328, ranking 58/197, compared to $114,769 in Switzerland, ranking 5/197. Adjusted for purchasing power (GDP per capita PPP), Bulgaria ranks 54th at $41,969, while Switzerland ranks 8th at $96,498.

Economic indicators

Bulgaria Switzerland
Gross domestic product
$131B
2025
$1.04T
2025
GDP rank
63/197
2025
20/197
2025
GDP growth
3.1%
2024-2025
1.3%
2024-2025
GDP per capita
$20,328
2025
$114,769
2025
GDP per capita rank
58/197
2025
5/197
2025
GDP per capita, PPP
$41,969
2024
$96,498
2024
GDP per capita PPP rank
54/197
2024
8/197
2024
Government debt
$35.4B
2025
$411B
2025
Debt-to-GDP ratio
27.1%
2025
39.4%
2025
Government debt per person
$5,507
2025
$45,239
2025
Government debt per person rank
79/185
2025
12/185
2025
Average annual personal income after taxes
$16,126
2026
$89,347
2026
Market capitalization of domestic companies
$11.2B
2025
$2.51T
2025
Number of millionaires n/a
944,000
2026
Number of billionaires
2
2026
45
2026
Income share by richest 10%
31.1%
2023
26.6%
2022
Income share by poorest 10%
2.1%
2023
2.9%
2022
Government expenditure, % of GDP
38.9%
2025
31.2%
2025
Consumer prices inflation
3.5%
2024-2025
0.15%
2024-2025
Central bank interest rate
1.81%
2025
0%
2025
Unemployment rate
3.5%
2025
4.84%
2025
Population
6390149
9155878

Spending and national debt comparison by year

Bulgaria
Spending

Debt
Switzerland
Spending

Debt
1x
Year % of GDP
Bulgaria Switzerland
Government spending Government debt Government spending Government debt
2025 38.9% 27.1% 31.2% 39.4%
2024 36.3% 23.8% 31.3% 40.5%
2023 37.5% 22.9% 30.9% 37.3%
2022 37.6% 22.5% 30.5% 35.9%
2021 38.5% 23.9% 33.4% 39.7%
2020 37.7% 22.7% 36.3% 42.4%
2019 36.1% 18.4% 31.3% 38.8%
2018 34.4% 20.1% 31.1% 39%
2017 32% 22.9% 31.9% 41.1%
2016 32.7% 27% 31.9% 40.3%
2015 37.3% 25.4% 31.9% 41.4%
2014 37.1% 26.3% 31.5% 41.2%
2013 35.5% 17.2% 32% 41.2%
2012 32.5% 16.5% 31.1% 41.9%
2011 32% 14.3% 31% 41.2%
2010 34.6% 14.1% 30.9% 40.7%
2009 33.8% 14.5% 31.2% 42.4%
2008 33.5% 14.7% 29.6% 44.2%
2007 33.1% 17.6% 29% 44%
2006 32.5% 22.6% 30.1% 47.7%
2005 34% 28.5% 31.9% 54.1%
2004 34.6% 37.8% 32.6% 57.1%
2003 35.8% 45.4% 32.8% 56.2%
2002 35.1% 53.4% 33.6% 56.9%
2001 36.5% 67.1% 31.2% 50.5%
2000 37.1% 73.3% 31.9% 51.7%
1999 36.2% 78.7% 32.8% 52%
1998 30.6% 67.3% 32.3% 55.3%
1997 32.9% 88.4% 32.5% 52.9%
1996 44% 113.8% 32.5% 50.6%
1995 45.4% 72% 32% 49.3%
1994 - - 32% 46.4%
1993 - - 31.9% 43.7%
1992 - - 30.8% 38.9%
1991 - - 29% 34.6%
1990 - - 27.2% 32.8%
1989 - - 30% 32.5%
1988 - - 30.3% 35%
1987 - - 29.8% 36.5%
1986 - - 29.8% 37.6%
1985 - - 30.1% 39.1%
1984 - - 30.4% 39.8%
1983 - - 31.2% 40.2%
1982 - - 30.5% 40%
1981 - - 29.4% 40.8%
1980 - - 29.9% 43.9%
1979 - - 30.5% 44.6%
1978 - - 30.4% 46.6%
1977 - - 31% 46.9%
1976 - - 31.6% 46.7%
1975 - - 29.3% 42.3%
1974 - - 27.5% 38.4%
1973 - - 26.5% 37%
1972 - - 25.7% 38%
1971 - - 25.4% 38.7%
1970 - - 25.8% 38.9%
1969 - - 9.45% 7.08%
1968 - - 8.87% 6.99%
1967 - - 8.68% 7.26%
1966 - - 8.95% 7.62%
1965 - - 8.33% 8.28%
1964 - - 8.85% 9.43%
1963 - - 8.2% 10.8%
1962 - - 8.1% 12%
1961 - - 7.97% 14%
1960 - - 7.11% 16.2%

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1997, retrieved 2026-07-08).

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

In 2025, Bulgaria's government spending was $50.8B, accounting for 38.9% of its GDP, while Switzerland spent $326B, or 31.2% of GDP.

Debt-to-GDP ratio is 27.1% in Bulgaria and 39.4% in Switzerland, ranking 164/185 and 136/185, respectively.

Government deficit by year

Deficit/surplus
Bulgaria

Switzerland
1x
Year Deficit/surplus, % of GDP
Bulgaria Switzerland
2025 -3.01% 0.45%
2024 -3.01% 0.53%
2023 -3.04% 0.12%
2022 -0.8% 1.15%
2021 -2.8% -0.28%
2020 -2.92% -2.96%
2019 -0.96% 1.31%
2018 0.12% 1.26%
2017 0.82% 1.11%
2016 1.54% 0.23%
2015 -2.77% 0.54%
2014 -3.65% -0.24%
2013 -1.75% -0.42%
2012 -0.43% 0.23%
2011 -1.83% 0.67%
2010 -3.77% 0.35%
2009 -0.86% 0.49%
2008 2.73% 1.91%
2007 3.09% 1.55%
2006 3.22% 0.83%
2005 2.19% -0.64%
2004 1.59% -1.37%
2003 0.003% -1.34%
2002 -0.61% -1.72%
2001 -0.58% 0.2%
2000 -0.6% 0.28%
1999 0.15% -1.55%
1998 1.08% -1.29%
1997 0.83% -2.3%
1996 -10.1% -1.98%
1995 -7.98% -1.83%
1994 - -2.55%
1993 - -3.1%
1992 - -2.92%
1991 - -1.82%
1990 - -0.05%
1989 - 0.2%
1988 - 0.42%
1987 - 0.78%
1986 - 0.93%
1985 - -0.25%
1984 - -0.52%
1983 - -1.23%
1982 - -1.21%
1981 - -0.54%
1980 - -1.34%
1979 - -1.79%
1978 - -1.12%
1977 - -1.64%
1976 - -1.89%
1975 - -0.93%
1974 - -1.01%
1973 - -0.93%
1972 - -1.39%
1971 - -1.41%
1970 - -1.44%
1969 - -0.98%
1968 - -0.73%
1967 - -1.07%
1966 - -0.87%
1965 - 0.05%
1964 - 0.77%
1963 - 0.25%
1962 - 0.95%
1961 - 0.34%
1960 - 1.95%
1959 - 0.72%
1958 - 0.59%
1957 - 0.66%
1956 - 2.24%
1955 - 1.1%
1954 - 1.44%
1953 - 0.38%
1952 - -1.17%
1951 - -0.36%
1950 - 1.49%
1949 - 0.04%
1948 - 1.37%
1947 - 1.27%
1946 - 0.52%
1945 - -7.57%
1944 0% -9.37%
1943 0% -8.55%
1942 -0.3% -7.28%
1941 3.96% -8.78%
1940 0.75% -10%
1939 0.72% -5.05%
1938 1% -1.53%
1937 1.41% -0.17%
1936 1.17% -0.33%
1935 1.34% -0.23%
1934 -0.12% -0.33%
1933 -0.56% -0.88%
1932 -2.14% -0.3%
1931 -3.07% 0.03%
1930 -5.48% 0.07%
1929 -6.67% 0.22%
1928 -1.09% -
1927 -0.02% -
1926 -0.25% -
1925 -0.97% -
1924 1.26% -
1923 - -
1922 - -
1921 - -
1920 - -
1919 - -
1918 - -
1917 - -
1916 - -
1915 - -
1914 - -
1913 - -0.12%
1912 - 0.03%
1911 - -0.006%
1910 - -0.14%
1909 - -0.78%
1908 - -0.1%
1907 - -0.02%
1906 - 0.15%
1905 - 0.41%
1904 - 0.002%
1903 - 0.09%
1902 - 0.02%
1901 - -0.14%
1900 - -0.07%
1899 - 0.1%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1899–1997, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

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

In 2025, Bulgaria's government deficit, the difference between spending and revenue, was $3.94B, equivalent to 3.01% of GDP. This compares to Switzerland's surplus of $4.71B, or 0.45% of GDP.

Over the past 31 years, Bulgaria recorded a fiscal deficit in 19 of those years, while Switzerland ran a deficit in 13 years. On average, Bulgaria posted an annual deficit equal to 1.1% of GDP, compared to deficit of 0.15% of GDP for Switzerland.

Inflation comparison by year

Inflation
Bulgaria

Switzerland
1x
Year Consumer prices inflation
Bulgaria Switzerland
2025 3.5% 0.15%
2024 2.6% 1.06%
2023 8.6% 2.14%
2022 13% 2.84%
2021 2.8% 0.58%
2020 1.2% -0.73%
2019 2.5% 0.36%
2018 2.6% 0.94%
2017 1.2% 0.53%
2016 -1.3% -0.43%
2015 -1.1% -1.14%
2014 -1.6% -0.01%
2013 0.4% -0.22%
2012 2.4% -0.69%
2011 3.4% 0.23%
2010 3% 0.69%
2009 2.5% -0.48%
2008 12% 2.43%
2007 7.6% 0.73%
2006 7.4% 1.06%
2005 6% 1.17%
2004 6.1% 0.8%
2003 2.3% 0.64%
2002 5.8% 0.64%
2001 7.4% 0.99%
2000 10.3% 1.56%
1999 2.6% 0.81%
1998 18.7% 0.02%
1997 1,061% 0.52%

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/bulgaria/switzerland | CC BY

Over the past 29 years, Bulgaria has recorded an average annual inflation rate of 41.1%, compared with 0.59% in Switzerland. In 2025, inflation was 3.5% in Bulgaria and 0.15% in Switzerland.

Top exports between countries

Bulgaria
Export category Export value
Machinery & equipment $238M
IT & IP services $210M
Business & finance services $147M
Transport & tourism services $53.9M
Textiles & consumer goods $50.4M
Metals $33.5M
Chemicals & pharma $33.3M
Raw materials & minerals $27.6M
Processed food, beverages & tobacco $9.68M
Animal & marine products $6.3M
Switzerland
Export category Export value
Chemicals & pharma $467M
Machinery & equipment $171M
Transport & tourism services $66.1M
IT & IP services $60.2M
Precious metals & jewellery $47.3M
Business & finance services $41M
Processed food, beverages & tobacco $30.8M
Textiles & consumer goods $19.6M
Metals $17.9M
Weapons & explosives $15.5M

Balance of trade

Bulgaria Switzerland
Current account balance
-$7.64B
2025
$72.9B
2025
Current account balance ranking
170/190
2025
11/190
2025
Current account balance, % of GDP
-5.84%
2025
+6.98%
2025
Goods imports
$58.5B
2025
$508B
2025
Goods exports
$47.9B
2025
$617B
2025
Service imports
$9.42B
2025
$214B
2025
Service exports
$18.6B
2025
$195B
2025
Imports of goods and services, % of GDP
51.8%
2025
69.1%
2025
Exports of goods and services, % of GDP
50.7%
2025
78.1%
2025

Economic freedom indices

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

Bulgaria Switzerland
Economic freedom 68.9 83.7
Economic freedom ranking 44/197 2/197
Property rights 75.8 94.4
Government integrity 48.4 93.3
Judicial effectiveness 58.5 98.3
Tax burden 89.1 70.9
Government spending 58.4 69.5
Fiscal health 90.4 97.2
Business freedom 78.2 86.3
Labor freedom 62.4 60
Monetary freedom 75.8 82.3
Trade freedom 79.4 87
Investment freedom 60 85
Financial freedom 50 80

Economic freedom comparison by year

Bulgaria
Switzerland
1x
Year Economic freedom index
Bulgaria Switzerland
2026 68.9 83.7
2025 68.8 83.7
2024 68.5 83
2023 69.3 83.8
2022 71 84.2
2021 70.4 81.9
2020 70.2 82
2019 69 81.9
2018 68.3 81.7
2017 67.9 81.5
2016 65.9 81
2015 66.8 80.5
2014 65.7 81.6
2013 65 81
2012 64.7 81.1
2011 64.9 81.9
2010 62.3 81.1
2009 64.6 79.4
2008 63.7 79.5
2007 62.7 78
2006 64.1 78.9
2005 62.3 79.3
2004 59.2 79.5
2003 57 79
2002 57.1 79.3
2001 51.9 76
2000 47.3 76.8
1999 46.2 79.1
1998 45.7 79
1997 47.6 78.6
1996 48.6 76.8
1995 50 -

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

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

The Economic Freedom Index for Bulgaria is 68.9, ranking 44/197, compared to 83.7 for Switzerland, ranking 2/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Bulgaria Switzerland
Services, % of GDP
63.3%
2025
71.7%
2025
Industry, % of GDP
21.2%
2025
25%
2025
Agriculture, forestry, and fishing, % of GDP
2.47%
2025
0.64%
2025
GNI, Atlas method
$114B
2025
$1T
2025
GNI per capita, PPP
$42,170
2025
$101,690
2025
Total reserves including gold
$47.1B
2025
$1.08T
2025
Total reserves ranking
51/177
2025
4/177
2025
Net foreign direct investment
-$3.37B
2025
$37.6B
2025
Net inflows of foreign direct investment
$3.05B
2024
-$108B
2024
Net outflows of foreign direct investment
$1.21B
2024
-$27.9B
2024
Servicing debt to the IMF, % of GNI
6.8%
2024
n/a
Poverty at national poverty lines
21.7%
2023
15.8%
2021
Gross capital formation, % of GDP
21.7%
2025
29.5%
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/bulgaria/switzerland | 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 (1899–1997, 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)
  5. U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
  6. TradeMap (2024–2025, retrieved 2026-07-08)
  7. United Nations | World Population Prospects (2026, retrieved 2026-07-08)
  8. LivingCost (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.