Burundi has a GDP of $3.36B compared to $47B for Estonia, ranking 169/197 and 101/197 by economy size, respectively.
Burundi has $1.39B in government debt (41.2% of GDP), compared to $11.4B (24.2% of GDP) in Estonia.
Burundi vs Estonia GDP by year
| Year | GDP, current $ | |
|---|---|---|
Burundi
|
Estonia
|
|
| 2025 | $3,364,713,864 | $47,030,833,799 |
| 2024 | $3,037,579,858 | $43,130,419,829 |
| 2023 | $3,419,558,408 | $41,470,344,395 |
| 2022 | $4,020,736,757 | $38,226,641,740 |
| 2021 | $3,425,127,991 | $37,201,101,171 |
| 2020 | $3,188,355,944 | $31,820,771,494 |
| 2019 | $2,871,555,326 | $31,873,748,770 |
| 2018 | $2,913,411,408 | $31,222,632,741 |
| 2017 | $2,831,362,208 | $27,469,461,919 |
| 2016 | $2,618,093,125 | $24,561,027,788 |
| 2015 | $2,810,532,912 | $23,311,847,751 |
| 2014 | $2,705,826,648 | $27,055,689,003 |
| 2013 | $2,451,624,638 | $25,451,032,781 |
| 2012 | $2,327,402,363 | $23,237,406,116 |
| 2011 | $2,235,812,880 | $23,303,915,795 |
| 2010 | $2,032,135,192 | $19,524,355,419 |
| 2009 | $1,775,495,032 | $19,633,984,440 |
| 2008 | $1,611,835,857 | $24,342,935,404 |
| 2007 | $1,356,199,387 | $22,450,264,166 |
| 2006 | $1,273,375,078 | $17,025,671,810 |
| 2005 | $1,117,113,080 | $14,109,491,357 |
| 2004 | $915,257,323 | $12,148,595,031 |
| 2003 | $784,654,424 | $9,876,595,528 |
| 2002 | $825,394,519 | $7,370,119,619 |
| 2001 | $876,794,723 | $6,250,218,423 |
| 2000 | $870,486,066 | $5,686,579,748 |
| 1999 | $808,077,223 | $5,756,912,266 |
| 1998 | $893,770,740 | $5,674,080,543 |
| 1997 | $972,896,268 | $5,154,420,649 |
| 1996 | $869,033,856 | $4,786,018,988 |
| 1995 | $1,000,428,394 | $4,502,970,889 |
| 1994 | $925,030,590 | $4,123,011,420 |
| 1993 | $938,632,612 | $4,013,091,682 |
| 1992 | $1,083,037,671 | - |
| 1991 | $1,167,398,478 | - |
| 1990 | $1,132,101,253 | - |
| 1989 | $1,113,924,130 | - |
| 1988 | $1,082,403,219 | - |
| 1987 | $1,131,466,494 | - |
| 1986 | $1,201,725,497 | - |
| 1985 | $1,149,979,286 | - |
| 1984 | $987,143,931 | - |
| 1983 | $1,082,926,304 | - |
| 1982 | $1,013,222,222 | - |
| 1981 | $969,046,667 | - |
| 1980 | $919,726,667 | - |
| 1979 | $782,496,667 | - |
| 1978 | $610,225,556 | - |
| 1977 | $547,535,556 | - |
| 1976 | $448,412,754 | - |
| 1975 | $420,986,667 | - |
| 1974 | $345,263,492 | - |
| 1973 | $304,339,524 | - |
| 1972 | $246,804,571 | - |
| 1971 | $252,842,286 | - |
| 1970 | $242,732,571 | - |
| 1969 | $190,205,714 | - |
| 1968 | $183,200,000 | - |
| 1967 | $178,297,143 | - |
| 1966 | $165,444,571 | - |
| 1965 | $158,994,963 | - |
| 1964 | $260,750,008 | - |
| 1963 | $232,749,998 | - |
| 1962 | $213,500,006 | - |
| 1961 | $202,999,992 | - |
| 1960 | $195,999,990 | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/burundi/estonia | CC BY 
GDP per capita in Burundi vs Estonia by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Burundi
|
Estonia
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2025 | $233.8 | - | $34,418 | - |
| 2024 | $216.2 | $1,195 | $31,428 | $49,969 |
| 2023 | $249.8 | $1,150 | $30,264 | $48,637 |
| 2022 | $302 | $1,105 | $28,340 | $48,218 |
| 2021 | $264.2 | $1,036 | $27,951 | $44,252 |
| 2020 | $252.7 | $958 | $23,934 | $40,672 |
| 2019 | $234.3 | $868 | $24,021 | $40,586 |
| 2018 | $245.7 | $823 | $23,618 | $37,121 |
| 2017 | $246.1 | $791 | $20,852 | $34,507 |
| 2016 | $232.9 | $764 | $18,666 | $31,948 |
| 2015 | $254.4 | $722 | $17,722 | $29,713 |
| 2014 | $250.5 | $724 | $20,582 | $29,404 |
| 2013 | $234.8 | $687 | $19,310 | $27,831 |
| 2012 | $231.1 | $637 | $17,568 | $26,243 |
| 2011 | $230.1 | $629 | $17,556 | $24,652 |
| 2010 | $216.7 | $614 | $14,664 | $21,614 |
| 2009 | $198.4 | $605 | $14,712 | $20,489 |
| 2008 | $189.5 | $609 | $18,206 | $22,804 |
| 2007 | $166.2 | $594 | $16,745 | $22,201 |
| 2006 | $161.9 | $580 | $12,641 | $19,344 |
| 2005 | $147.2 | $553 | $10,415 | $16,638 |
| 2004 | $125.2 | $552 | $8,916 | $14,538 |
| 2003 | $111.4 | $532 | $7,205 | $13,135 |
| 2002 | $121 | $545 | $5,343 | $11,667 |
| 2001 | $132.2 | $528 | $4,503 | $10,309 |
| 2000 | $134.5 | $519 | $4,071 | $9,425 |
| 1999 | $127.5 | $523 | $4,141 | $8,412 |
| 1998 | $144.5 | $533 | $4,093 | $8,451 |
| 1997 | $160.3 | $513 | $3,683 | $7,980 |
| 1996 | $143.2 | $513 | $3,381 | $6,892 |
| 1995 | $164.9 | $548 | $3,134 | $6,480 |
| 1994 | $161.9 | $619 | $2,819 | $5,967 |
| 1993 | $165.3 | $634 | $2,686 | $5,814 |
| 1992 | $184.9 | $640 | - | $5,872 |
| 1991 | $204.7 | $636 | - | $7,151 |
| 1990 | $202.6 | $598 | - | $7,481 |
| 1989 | $203.6 | - | - | - |
| 1988 | $201.7 | - | - | - |
| 1987 | $215.6 | - | - | - |
| 1986 | $234.3 | - | - | - |
| 1985 | $228.4 | - | - | - |
| 1984 | $200.4 | - | - | - |
| 1983 | $225.2 | - | - | - |
| 1982 | $216.4 | - | - | - |
| 1981 | $212.2 | - | - | - |
| 1980 | $209.8 | - | - | - |
| 1979 | $186.2 | - | - | - |
| 1978 | $148.8 | - | - | - |
| 1977 | $137.4 | - | - | - |
| 1976 | $115.5 | - | - | - |
| 1975 | $110.9 | - | - | - |
| 1974 | $93.2 | - | - | - |
| 1973 | $84.3 | - | - | - |
| 1972 | $68.2 | - | - | - |
| 1971 | $69.9 | - | - | - |
| 1970 | $68.8 | - | - | - |
| 1969 | $55.1 | - | - | - |
| 1968 | $54.2 | - | - | - |
| 1967 | $54 | - | - | - |
| 1966 | $51.4 | - | - | - |
| 1965 | $50.6 | - | - | - |
| 1964 | $85.3 | - | - | - |
| 1963 | $78.4 | - | - | - |
| 1962 | $73.4 | - | - | - |
| 1961 | $71.6 | - | - | - |
| 1960 | $70.9 | - | - | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/burundi/estonia | CC BY
Burundi's GDP per capita is $233.8, ranking 197/197, compared to $34,418 in Estonia, ranking 37/197. Adjusted for purchasing power (GDP per capita PPP), Burundi ranks 196th at $1,195, while Estonia ranks 45th at $49,969.
Economic indicators
|
Burundi
|
Estonia
|
|
|---|---|---|
| Gross domestic product |
$3.36B
2025 |
$47B
2025 |
| GDP rank |
169/197
2025 |
101/197
2025 |
| GDP growth |
4.24%
2024-2025 |
0.58%
2024-2025 |
| GDP per capita |
$233.8
2025 |
$34,418
2025 |
| GDP per capita rank |
197/197
2025 |
37/197
2025 |
| GDP per capita, PPP |
$1,195
2024 |
$49,969
2024 |
| GDP per capita PPP rank |
196/197
2024 |
45/197
2024 |
| Government debt |
$1.39B
2025 |
$11.4B
2025 |
| Debt-to-GDP ratio |
41.2%
2025 |
24.2%
2025 |
| Government debt per person |
$96.3
2025 |
$8,325
2025 |
| Government debt per person rank |
184/185
2025 |
67/185
2025 |
| Average annual personal income after taxes |
$1,052
2026 |
$23,647
2026 |
| Number of billionaires | n/a |
2
2026 |
| Income share by richest 10% |
29.9%
2020 |
23.7%
2023 |
| Income share by poorest 10% |
2.9%
2020 |
3.1%
2023 |
| Government expenditure, % of GDP |
20.4%
2025 |
45.2%
2025 |
| Consumer prices inflation |
34.1%
2024-2025 |
4.83%
2024-2025 |
| Unemployment rate |
1.03%
2020 |
7.5%
2025 |
| Population |
14909238
|
1347027
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Burundi
|
Estonia
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2025 | 20.4% | 41.2% | 45.2% | 24.2% |
| 2024 | 22.3% | 53.1% | 43.6% | 23.5% |
| 2023 | 28.4% | 59.9% | 43.5% | 20.2% |
| 2022 | 33.5% | 69.8% | 40.1% | 19.2% |
| 2021 | 28.4% | 63.6% | 42.1% | 18.4% |
| 2020 | 29.2% | 65.9% | 44.7% | 19.1% |
| 2019 | 28.8% | 60.1% | 39.1% | 9.05% |
| 2018 | 26% | 53% | 38.8% | 8.51% |
| 2017 | 24.1% | 46.9% | 38.9% | 9.43% |
| 2016 | 22.6% | 46.1% | 38.9% | 10.2% |
| 2015 | 23.2% | 39.9% | 39.3% | 10.8% |
| 2014 | 28.5% | 38% | 37.6% | 11.6% |
| 2013 | 34.8% | 37.9% | 38.3% | 11.4% |
| 2012 | 37.5% | 41.4% | 39.4% | 11.1% |
| 2011 | 42.2% | 42.7% | 37.6% | 7.6% |
| 2010 | 40.8% | 46.9% | 40.7% | 7.99% |
| 2009 | 38% | 25.7% | 46.1% | 7.98% |
| 2008 | 41.2% | 102.5% | 39.5% | 4.67% |
| 2007 | 39% | 129.6% | 33.8% | 3.91% |
| 2006 | 36.5% | 130.3% | 33.5% | 4.72% |
| 2005 | 33.1% | 137% | 33.7% | 4.73% |
| 2004 | 39.2% | 166.1% | 34.1% | 5.16% |
| 2003 | 33.9% | 159.9% | 35% | 5.6% |
| 2002 | 21.9% | 144.8% | 35.9% | 5.66% |
| 2001 | 22.7% | 113.6% | 35.3% | 4.93% |
| 2000 | 21.7% | 120% | 36.4% | 5.11% |
| 1999 | 20.5% | 140.6% | 40.7% | 5.93% |
| 1998 | 19.9% | 138.9% | 38.9% | 5.4% |
| 1997 | 18.8% | 122.8% | 35.8% | 6.03% |
| 1996 | 24.4% | 139.4% | 38.6% | 7.3% |
| 1995 | 22.1% | 117.1% | 39.5% | 8.66% |
| 1994 | 19.4% | 119.6% | - | - |
| 1993 | 24% | 112% | - | - |
| 1992 | 26.1% | 93.5% | - | - |
| 1991 | 19.2% | - | - | - |
| 1990 | 17.4% | - | - | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1992–1999, retrieved 2026-07-08).
GeoRank.org/economy/burundi/estonia | CC BY
In 2025, Burundi's government spending was $686M, accounting for 20.4% of its GDP, while Estonia spent $21.3B, or 45.2% of GDP.
Debt-to-GDP ratio is 41.2% in Burundi and 24.2% in Estonia, ranking 129/185 and 168/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Burundi
|
Estonia
|
|
| 2025 | -2.98% | -1.33% |
| 2024 | -4.83% | -1.54% |
| 2023 | -7.7% | -3.07% |
| 2022 | -10.7% | -1.08% |
| 2021 | -4.6% | -2.57% |
| 2020 | -6.58% | -5.42% |
| 2019 | -6.4% | -0.11% |
| 2018 | -6.66% | -1.15% |
| 2017 | -5.01% | -1.07% |
| 2016 | -7.11% | -0.62% |
| 2015 | -7.56% | -0.24% |
| 2014 | -3.93% | 0.42% |
| 2013 | -1.9% | -0.66% |
| 2012 | -3.79% | -0.86% |
| 2011 | -3.49% | 0.09% |
| 2010 | -3.64% | -1.09% |
| 2009 | -5.14% | -3.43% |
| 2008 | -2.7% | -2.92% |
| 2007 | -2.51% | 2.5% |
| 2006 | -9.92% | 2.71% |
| 2005 | -10.6% | 1.07% |
| 2004 | -14.9% | 2.29% |
| 2003 | -13.7% | 1.67% |
| 2002 | -4.9% | 0.29% |
| 2001 | -7.78% | 0.4% |
| 2000 | -5.66% | -0.11% |
| 1999 | -5.33% | -3.42% |
| 1998 | -4.43% | 0.65% |
| 1997 | -4.48% | 2.98% |
| 1996 | -8.61% | -0.93% |
| 1995 | -3.72% | -0.26% |
| 1994 | -1.76% | - |
| 1993 | -1.22% | - |
| 1992 | -4.16% | - |
| 1991 | 4.14% | - |
| 1990 | 8.14% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).
GeoRank.org/economy/burundi/estonia | CC BY
In 2025, Burundi's government deficit, the difference between spending and revenue, was $100M, equivalent to 2.98% of GDP. This compares to Estonia's deficit of $626M, or 1.33% of GDP.
Over the past 31 years, Burundi recorded a fiscal deficit in 31 of those years, while Estonia ran a deficit in 20 years. On average, Burundi posted an annual deficit equal to 6.17% of GDP, compared to deficit of 0.54% of GDP for Estonia.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Burundi
|
Estonia
|
|
| 2025 | 34.1% | 4.83% |
| 2024 | 20.2% | 3.52% |
| 2023 | 26.9% | 9.16% |
| 2022 | 18.8% | 19.4% |
| 2021 | 8.4% | 4.65% |
| 2020 | 7.32% | -0.44% |
| 2019 | -0.69% | 2.28% |
| 2018 | -2.81% | 3.44% |
| 2017 | 16.1% | 3.42% |
| 2016 | 5.56% | 0.15% |
| 2015 | 5.54% | -0.49% |
| 2014 | 4.41% | -0.11% |
| 2013 | 7.94% | 2.78% |
| 2012 | 18.2% | 3.93% |
| 2011 | 9.59% | 4.98% |
| 2010 | 6.49% | 2.97% |
| 2009 | 10.6% | -0.08% |
| 2008 | 24.4% | 10.4% |
| 2007 | 8.41% | 6.6% |
| 2006 | 2.75% | 4.44% |
| 2005 | 13.3% | 4.08% |
| 2004 | 8.18% | 3.05% |
| 2003 | 10.6% | 1.33% |
| 2002 | -1.37% | 3.57% |
| 2001 | 9.3% | 5.75% |
| 2000 | 24.4% | 4.02% |
| 1999 | 3.39% | 3.3% |
| 1998 | 12.5% | 8.21% |
| 1997 | 31.1% | 10.6% |
Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).
GeoRank.org/economy/burundi/estonia | CC BY
Over the past 29 years, Burundi has recorded an average annual inflation rate of 11.8%, compared with 4.47% in Estonia. In 2025, inflation was 34.1% in Burundi and 4.83% in Estonia.
Top exports between countries
Balance of trade
|
Burundi
|
Estonia
|
|
|---|---|---|
|
Current account balance
|
-$461M
2025 |
-$70M
2025 |
| Current account balance ranking |
103/190
2025 |
79/190
2025 |
| Current account balance, % of GDP |
-13.7%
2025 |
-0.15%
2025 |
| Goods imports |
$1.1B
2025 |
$24.4B
2025 |
| Goods exports |
$407M
2025 |
$21.2B
2025 |
| Service imports |
$406M
2025 |
$12B
2025 |
| Service exports |
$148M
2025 |
$15.6B
2025 |
| Imports of goods and services, % of GDP |
24.4%
2023 |
77.4%
2025 |
| Exports of goods and services, % of GDP |
5.29%
2023 |
78.4%
2025 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Burundi
|
Estonia
|
|
|---|---|---|
| Economic freedom | 40.2 | 78.7 |
| Economic freedom ranking | 187/197 | 10/197 |
| Property rights | 27.2 | 93.6 |
| Government integrity | 15.5 | 86.3 |
| Judicial effectiveness | 7.5 | 92.4 |
| Tax burden | 76.1 | 77.9 |
| Government spending | 76.3 | 46 |
| Fiscal health | 14.6 | 93.1 |
| Business freedom | 27.2 | 82.8 |
| Labor freedom | 49.9 | 59 |
| Monetary freedom | 55.5 | 73.9 |
| Trade freedom | 52.2 | 79.4 |
| Investment freedom | 50 | 90 |
| Financial freedom | 30 | 70 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Burundi
|
Estonia
|
|
| 2026 | 40.2 | 78.7 |
| 2025 | 39.7 | 78.9 |
| 2024 | 38.4 | 77.8 |
| 2023 | 41.9 | 78.6 |
| 2022 | 39.4 | 80 |
| 2021 | 49.9 | 78.2 |
| 2020 | 49 | 77.7 |
| 2019 | 48.9 | 76.6 |
| 2018 | 50.9 | 78.8 |
| 2017 | 53.2 | 79.1 |
| 2016 | 53.9 | 77.2 |
| 2015 | 53.7 | 76.8 |
| 2014 | 51.4 | 75.9 |
| 2013 | 49 | 75.3 |
| 2012 | 48.1 | 73.2 |
| 2011 | 49.6 | 75.2 |
| 2010 | 47.5 | 74.7 |
| 2009 | 48.8 | 76.4 |
| 2008 | 46.2 | 77.9 |
| 2007 | 46.9 | 78 |
| 2006 | 48.7 | 74.9 |
| 2005 | - | 75.2 |
| 2004 | - | 77.4 |
| 2003 | - | 77.7 |
| 2002 | - | 77.6 |
| 2001 | - | 76.1 |
| 2000 | 42.6 | 69.9 |
| 1999 | 41.1 | 73.8 |
| 1998 | 44.7 | 72.5 |
| 1997 | 45.4 | 69.1 |
| 1996 | - | 65.4 |
| 1995 | - | 65.2 |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08).
GeoRank.org/economy/burundi/estonia | CC BY
The Economic Freedom Index for Burundi is 40.2, ranking 187/197, compared to 78.7 for Estonia, ranking 10/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Burundi
|
Estonia
|
|
|---|---|---|
| Services, % of GDP |
42.1%
2025 |
65.8%
2025 |
| Industry, % of GDP |
18.2%
2025 |
19.7%
2025 |
| Agriculture, forestry, and fishing, % of GDP |
34.3%
2025 |
1.65%
2025 |
|
GNI, Atlas method
|
$3.46B
2025 |
$44.2B
2025 |
| GNI per capita, PPP |
$1,250
2025 |
$51,370
2025 |
| Total reserves including gold |
$90.3M
2023 |
$2.44B
2025 |
| Total reserves ranking |
174/177
2023 |
124/177
2025 |
|
Net foreign direct investment
|
-$31.2M
2025 |
$814M
2025 |
|
Net inflows of foreign direct investment
|
$33.3M
2024 |
-$3.44B
2024 |
|
Net outflows of foreign direct investment
|
$8.51M
2024 |
-$3.72B
2024 |
|
Servicing debt to the IMF, % of GNI
|
1.18%
2024 |
n/a |
| Poverty at national poverty lines |
51%
2020 |
22.5%
2022 |
|
Gross capital formation, % of GDP
|
10%
2023 |
24.8%
2025 |
GDP per capita map
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/burundi/estonia | CC BY
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Data sources:
- World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
- The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08)
- U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Public Finances in Modern History (1992–1999, retrieved 2026-07-08)
- TradeMap (2020–2024, retrieved 2026-07-08)
- United Nations | World Population Prospects (2026, retrieved 2026-07-08)
- LivingCost (2026, retrieved 2026-07-08)
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.