Cambodia has a GDP of $46.4B compared to $53.9B for Uganda, ranking 97/197 and 89/197 by economy size, respectively.
Cambodia has $12B in government debt (25.9% of GDP), compared to $27.8B (51.5% of GDP) in Uganda.
Cambodia vs Uganda GDP by year
| Year | GDP, current $ | |
|---|---|---|
Cambodia
|
Uganda
|
|
| 2024 | $46,352,647,037 | $53,911,907,086 |
| 2023 | $42,335,646,896 | $48,768,955,863 |
| 2022 | $39,994,532,960 | $45,565,333,211 |
| 2021 | $36,790,163,687 | $40,529,788,749 |
| 2020 | $34,818,073,901 | $37,600,368,242 |
| 2019 | $36,685,356,408 | $35,353,061,003 |
| 2018 | $33,145,892,169 | $32,927,025,620 |
| 2017 | $29,355,665,910 | $30,744,473,841 |
| 2016 | $26,556,545,153 | $29,203,988,696 |
| 2015 | $24,174,170,369 | $32,387,183,730 |
| 2014 | $22,041,463,968 | $32,612,397,257 |
| 2013 | $19,807,135,253 | $28,915,786,517 |
| 2012 | $17,826,536,700 | $27,305,915,911 |
| 2011 | $16,032,622,024 | $27,871,725,241 |
| 2010 | $13,808,673,288 | $26,673,441,431 |
| 2009 | $12,502,901,170 | $25,127,805,567 |
| 2008 | $12,174,303,999 | $14,440,404,132 |
| 2007 | $10,127,916,460 | $11,902,564,495 |
| 2006 | $8,350,531,017 | $9,977,647,683 |
| 2005 | $7,066,296,463 | $9,239,221,763 |
| 2004 | $5,883,297,160 | $7,939,487,548 |
| 2003 | $5,046,693,484 | $6,606,884,275 |
| 2002 | $4,501,227,627 | $6,178,563,591 |
| 2001 | $4,145,665,970 | $5,840,503,869 |
| 2000 | $3,694,168,979 | $6,193,246,837 |
| 1999 | $3,517,242,477 | $5,998,563,258 |
| 1998 | $3,120,425,503 | $6,584,815,847 |
| 1997 | $3,443,413,389 | $6,269,333,313 |
| 1996 | $3,506,695,720 | $6,044,585,327 |
| 1995 | $3,441,205,693 | $5,755,818,842 |
| 1994 | $2,791,435,272 | $3,990,430,447 |
| 1993 | $2,533,727,592 | $3,220,439,044 |
| 1992 | $2,491,486,594 | $2,857,457,762 |
| 1991 | $2,054,974,089 | $3,321,729,160 |
| 1990 | $1,402,541,177 | $4,304,399,310 |
| 1989 | $1,353,137,648 | $5,276,480,799 |
| 1988 | $1,662,877,859 | $6,508,931,652 |
| 1987 | $1,036,974,910 | $6,269,522,042 |
| 1986 | $1,167,630,318 | $3,923,244,050 |
| 1985 | $1,102,669,184 | $3,519,695,444 |
| 1984 | $1,021,176,059 | $3,615,647,477 |
| 1983 | $939,291,262 | $2,240,333,333 |
| 1982 | $865,516,040 | $2,177,500,000 |
| 1981 | $815,153,652 | $1,337,300,000 |
| 1980 | $744,384,130 | $1,244,610,000 |
| 1979 | $723,738,503 | $2,139,025,000 |
| 1978 | $766,642,356 | $2,420,260,870 |
| 1977 | $716,261,764 | $2,936,470,588 |
| 1976 | $790,357,255 | $2,447,300,000 |
| 1975 | $749,129,748 | $2,359,555,556 |
| 1974 | - | $2,098,944,967 |
| 1973 | - | $1,701,829,789 |
| 1972 | - | $1,490,970,181 |
| 1971 | - | $1,417,191,656 |
| 1970 | - | $1,259,554,809 |
| 1969 | - | $1,168,556,629 |
| 1968 | - | $1,037,379,252 |
| 1967 | - | $967,240,655 |
| 1966 | - | $925,381,492 |
| 1965 | - | $884,502,310 |
| 1964 | - | $589,247,687 |
| 1963 | - | $516,315,231 |
| 1962 | - | $449,158,233 |
| 1961 | - | $441,667,335 |
| 1960 | - | $423,145,605 |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/cambodia/uganda | CC BY 
GDP per capita in Cambodia vs Uganda by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Cambodia
|
Uganda
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2024 | $2,628 | $7,967 | $1,078 | $3,273 |
| 2023 | $2,430 | $7,431 | $1,002 | $3,098 |
| 2022 | $2,325 | $6,919 | $963 | $2,919 |
| 2021 | $2,167 | $6,226 | $883 | $2,685 |
| 2020 | $2,082 | $5,942 | $846 | $2,532 |
| 2019 | $2,226 | $6,154 | $822 | $2,441 |
| 2018 | $2,037 | $5,617 | $792 | $2,312 |
| 2017 | $1,826 | $5,050 | $765 | $2,158 |
| 2016 | $1,675 | $4,748 | $753 | $2,165 |
| 2015 | $1,547 | $4,434 | $863 | $2,190 |
| 2014 | $1,432 | $4,118 | $896 | $2,134 |
| 2013 | $1,306 | $3,891 | $818 | $2,045 |
| 2012 | $1,193 | $3,583 | $795 | $2,032 |
| 2011 | $1,089 | $3,223 | $836 | $2,268 |
| 2010 | $952 | $2,989 | $823 | $2,092 |
| 2009 | $876 | $2,854 | $799 | $2,015 |
| 2008 | $866 | $2,769 | $473 | $1,931 |
| 2007 | $732 | $2,566 | $401 | $1,795 |
| 2006 | $612 | $2,297 | $347 | $1,660 |
| 2005 | $526 | $2,038 | $330 | $1,497 |
| 2004 | $444 | $1,770 | $292.4 | $1,405 |
| 2003 | $387 | $1,598 | $250.7 | $1,320 |
| 2002 | $350 | $1,442 | $242 | $1,255 |
| 2001 | $328 | $1,357 | $236 | $1,173 |
| 2000 | $296.4 | $1,256 | $258.1 | $1,124 |
| 1999 | $286.8 | $1,134 | $257.9 | $1,100 |
| 1998 | $258.8 | $1,009 | $292.5 | $1,037 |
| 1997 | $297.6 | $994 | $286.8 | $1,007 |
| 1996 | $325 | $1,006 | $284.7 | $969 |
| 1995 | $343 | $1,006 | $278.5 | $897 |
| 1994 | $302 | $972 | $198.4 | $809 |
| 1993 | $294.1 | $1,565 | $165.6 | $770 |
| 1992 | $307 | $1,560 | $152.1 | $719 |
| 1991 | $267.3 | $1,504 | $183 | $703 |
| 1990 | $190.2 | $1,410 | $245 | $666 |
| 1989 | $191.3 | - | $310 | - |
| 1988 | $244.1 | - | $395 | - |
| 1987 | $158.1 | - | $393 | - |
| 1986 | $185.8 | - | $253.6 | - |
| 1985 | $182.4 | - | $234.3 | - |
| 1984 | $174.7 | - | $247.5 | - |
| 1983 | $166.7 | - | $157.5 | - |
| 1982 | $159.2 | - | $157 | - |
| 1981 | $154.3 | - | $98.6 | - |
| 1980 | $143.2 | - | $93.8 | - |
| 1979 | $142.2 | - | $164.5 | - |
| 1978 | $147.1 | - | $190.7 | - |
| 1977 | $126.4 | - | $237.6 | - |
| 1976 | $128.8 | - | $203.3 | - |
| 1975 | $113.8 | - | $201.2 | - |
| 1974 | - | - | $183.7 | - |
| 1973 | - | - | $152.7 | - |
| 1972 | - | - | $137 | - |
| 1971 | - | - | $133.5 | - |
| 1970 | - | - | $122 | - |
| 1969 | - | - | $116.7 | - |
| 1968 | - | - | $106.9 | - |
| 1967 | - | - | $102.8 | - |
| 1966 | - | - | $101.4 | - |
| 1965 | - | - | $100 | - |
| 1964 | - | - | $68.6 | - |
| 1963 | - | - | $62 | - |
| 1962 | - | - | $55.5 | - |
| 1961 | - | - | $56.2 | - |
| 1960 | - | - | $55.4 | - |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/cambodia/uganda | CC BY
Cambodia's GDP per capita is $2,628, ranking 145/197, compared to $1,078 in Uganda, ranking 176/197. Adjusted for purchasing power (GDP per capita PPP), Cambodia ranks 142nd at $7,967, while Uganda ranks 176th at $3,273.
Economic indicators
|
Cambodia
|
Uganda
|
|
|---|---|---|
| Gross domestic product |
$46.4B
2024 |
$53.9B
2024 |
| GDP rank |
97/197
2024 |
89/197
2024 |
| GDP growth |
5.98%
2023-2024 |
6.06%
2023-2024 |
| GDP per capita |
$2,628
2024 |
$1,078
2024 |
| GDP per capita rank |
145/197
2024 |
176/197
2024 |
| GDP per capita, PPP |
$7,967
2024 |
$3,273
2024 |
| GDP per capita PPP rank |
142/197
2024 |
176/197
2024 |
| Government debt |
$12B
2024 |
$27.8B
2024 |
| Debt-to-GDP ratio |
25.9%
2024 |
51.5%
2024 |
| Government debt per person |
$681
2024 |
$555
2024 |
| Government debt per person rank |
156/185
2024 |
163/185
2024 |
| Average annual personal income after taxes |
$2,258
2026 |
$1,466
2026 |
| Income share by richest 10% | n/a |
34.5%
2019 |
| Income share by poorest 10% | n/a |
2.4%
2019 |
| Government expenditure, % of GDP |
17.3%
2024 |
18.7%
2024 |
| Consumer prices inflation |
0.9%
2023-2024 |
3.3%
2023-2024 |
| Central bank interest rate | n/a |
9.75%
2024 |
| Unemployment rate |
0.26%
2023 |
3.42%
2021 |
| Population |
18113986
|
53170946
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Cambodia
|
Uganda
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2024 | 17.3% | 25.9% | 18.7% | 51.5% |
| 2023 | 19.1% | 26.3% | 19.3% | 50.5% |
| 2022 | 18.7% | 25.5% | 19.5% | 50.2% |
| 2021 | 21% | 25.9% | 22% | 50.3% |
| 2020 | 20.3% | 25.2% | 21.4% | 46.3% |
| 2019 | 17.6% | 20.8% | 18.3% | 37.5% |
| 2018 | 16.1% | 21.1% | 16.2% | 34.9% |
| 2017 | 16.2% | 22.6% | 16.3% | 33.6% |
| 2016 | 15.2% | 21.8% | 15.2% | 31.3% |
| 2015 | 14.5% | 23.3% | 14.9% | 28% |
| 2014 | 16.5% | 24.2% | 13.6% | 24.8% |
| 2013 | 16.4% | 24.4% | 13.3% | 22.1% |
| 2012 | 17.1% | 24.9% | 13.1% | 19.5% |
| 2011 | 16.5% | 23.8% | 13.2% | 18% |
| 2010 | 17% | 23.4% | 15.4% | 18.4% |
| 2009 | 17% | 23.7% | 11.8% | 14.8% |
| 2008 | 13.1% | 23% | 12.9% | 15.7% |
| 2007 | 12.3% | 25.1% | 13.2% | 17% |
| 2006 | 11.3% | 26.7% | 13.7% | 27.8% |
| 2005 | 11% | 31.7% | 14.5% | 42.6% |
| 2004 | 12.6% | 38.7% | 15.6% | 49% |
| 2003 | 14.5% | 39.8% | 16.5% | 55.1% |
| 2002 | 16.1% | 37.8% | 16.8% | 54.7% |
| 2001 | 14.5% | 33.5% | 16.2% | 51.4% |
| 2000 | 14.9% | 34.9% | 15.2% | 48.5% |
| 1999 | 13.8% | 34.6% | 14.7% | 47.7% |
| 1998 | 13.4% | 37.2% | 14% | 45.1% |
| 1997 | 12.4% | 31.4% | 13.9% | 44.2% |
| 1996 | 15.7% | 30.1% | - | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1996–2024, retrieved 2026-02-20).
GeoRank.org/economy/cambodia/uganda | CC BY
In 2024, Cambodia's government spending was $8B, accounting for 17.3% of its GDP, while Uganda spent $10.1B, or 18.7% of GDP.
Debt-to-GDP ratio is 25.9% in Cambodia and 51.5% in Uganda, ranking 164/185 and 103/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Cambodia
|
Uganda
|
|
| 2024 | -2.67% | -3.99% |
| 2023 | -2.83% | -4.87% |
| 2022 | -0.29% | -5.45% |
| 2021 | -5.18% | -7.76% |
| 2020 | -2.53% | -7.76% |
| 2019 | 2.19% | -4.82% |
| 2018 | 0.28% | -3.02% |
| 2017 | -0.76% | -3.83% |
| 2016 | -0.29% | -2.64% |
| 2015 | -0.65% | -2.59% |
| 2014 | -1.24% | -2.74% |
| 2013 | -2.01% | -3.19% |
| 2012 | -3.57% | -2.39% |
| 2011 | -3.76% | -2.04% |
| 2010 | -3.09% | -4.64% |
| 2009 | -3.98% | -1.61% |
| 2008 | 0.43% | -1.99% |
| 2007 | 0.62% | -0.82% |
| 2006 | -0.15% | -0.64% |
| 2005 | -0.34% | -0.17% |
| 2004 | -3.23% | 0.34% |
| 2003 | -5.69% | -0.97% |
| 2002 | -6.07% | -2.07% |
| 2001 | -4.95% | -0.99% |
| 2000 | -4.76% | -0.62% |
| 1999 | -3.79% | -1.24% |
| 1998 | -5.35% | -0.7% |
| 1997 | -3.7% | -0.83% |
| 1996 | -7.53% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1996–2024, retrieved 2026-02-20).
GeoRank.org/economy/cambodia/uganda | CC BY
In 2024, Cambodia's government deficit, the difference between spending and revenue, was $1.24B, equivalent to 2.67% of GDP. This compares to Uganda's deficit of $2.15B, or 3.99% of GDP.
Over the past 28 years, Cambodia recorded a fiscal deficit in 24 of those years, while Uganda ran a deficit in 27 years. On average, Cambodia posted an annual deficit equal to 2.41% of GDP, compared to deficit of 2.64% of GDP for Uganda.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Cambodia
|
Uganda
|
|
| 2024 | 0.9% | 3.3% |
| 2023 | 2.1% | 5.4% |
| 2022 | 5.3% | 7.2% |
| 2021 | 2.9% | 2.2% |
| 2020 | 2.9% | 2.8% |
| 2019 | 2% | 2.1% |
| 2018 | 2.4% | 2.5% |
| 2017 | 2.9% | 5.6% |
| 2016 | 3% | 5.2% |
| 2015 | 1.2% | 3.7% |
| 2014 | 3.9% | 4.3% |
| 2013 | 2.9% | 5.5% |
| 2012 | 2.9% | 14% |
| 2011 | 5.5% | 18.7% |
| 2010 | 4% | 4% |
| 2009 | -0.7% | 13% |
| 2008 | 25% | 12% |
| 2007 | 7.7% | 6.1% |
| 2006 | 6.1% | 7.2% |
| 2005 | 6.3% | 8.6% |
| 2004 | 3.9% | 3.7% |
| 2003 | 1% | 8.7% |
| 2002 | 0% | -0.3% |
| 2001 | -0.1% | 1.9% |
| 2000 | -0.8% | 3.4% |
| 1999 | 2% | 5.8% |
| 1998 | 12.9% | 5.8% |
| 1997 | 10.5% | 7.7% |
Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2024, retrieved 2026-02-20).
GeoRank.org/economy/cambodia/uganda | CC BY
Over the past 28 years, Cambodia has recorded an average annual inflation rate of 4.24%, compared with 6.08% in Uganda. In 2024, inflation was 0.9% in Cambodia and 3.3% in Uganda.
Top exports between countries
|
Cambodia
|
|
|---|---|
| Export category | Export value |
| Metals | $124K |
| Machinery & equipment | $10K |
| Miscellaneous | $5K |
| Textiles & consumer goods | $2K |
|
Uganda
|
|
|---|---|
| Export category | Export value |
| Wood & paper products | $80K |
| Animal & marine products | $71K |
| Textiles & consumer goods | $58K |
| Raw agricultural goods | $49K |
| Chemicals & pharma | $7K |
Balance of trade
|
Cambodia
|
Uganda
|
|
|---|---|---|
|
Current account balance
|
$228M
2024 |
-$4.29B
2024 |
| Current account balance ranking |
65/190
2024 |
164/190
2024 |
| Current account balance, % of GDP |
+0.49%
2024 |
-7.96%
2024 |
| Goods imports |
$31.2B
2024 |
$11.7B
2024 |
| Goods exports |
$26.8B
2024 |
$8.67B
2024 |
| Service imports |
$3.08B
2024 |
$4.38B
2024 |
| Service exports |
$4.97B
2024 |
$2.39B
2024 |
| Imports of goods and services, % of GDP |
72.1%
2024 |
25.9%
2024 |
| Exports of goods and services, % of GDP |
71.4%
2024 |
16.8%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Cambodia
|
Uganda
|
|
|---|---|---|
| Economic freedom | 58.7 | 52.4 |
| Economic freedom ranking | 108/197 | 149/197 |
| Property rights | 38.1 | 42.2 |
| Government integrity | 18.9 | 25.1 |
| Judicial effectiveness | 21.2 | 29.4 |
| Tax burden | 90.3 | 73.4 |
| Government spending | 89.9 | 89 |
| Fiscal health | 92.7 | 58.3 |
| Business freedom | 60.8 | 50.2 |
| Labor freedom | 48.3 | 55.9 |
| Monetary freedom | 77 | 77.1 |
| Trade freedom | 67.8 | 58 |
| Investment freedom | 50 | 30 |
| Financial freedom | 50 | 40 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Cambodia
|
Uganda
|
|
| 2026 | 58.7 | 52.4 |
| 2025 | 58.2 | 51.3 |
| 2024 | 55.6 | 50.7 |
| 2023 | 56.5 | 51.4 |
| 2022 | 57.1 | 54.2 |
| 2021 | 57.3 | 58.6 |
| 2020 | 57.3 | 59.5 |
| 2019 | 57.8 | 59.7 |
| 2018 | 58.7 | 62 |
| 2017 | 59.5 | 60.9 |
| 2016 | 57.9 | 59.3 |
| 2015 | 57.5 | 59.7 |
| 2014 | 57.4 | 59.9 |
| 2013 | 58.5 | 61.1 |
| 2012 | 57.6 | 61.9 |
| 2011 | 57.9 | 61.7 |
| 2010 | 56.6 | 62.2 |
| 2009 | 56.6 | 63.5 |
| 2008 | 55.9 | 63.8 |
| 2007 | 55.9 | 63.1 |
| 2006 | 56.7 | 63.9 |
| 2005 | 60 | 62.9 |
| 2004 | 61.1 | 64.1 |
| 2003 | 63.7 | 60.1 |
| 2002 | 60.7 | 61 |
| 2001 | 59.6 | 60.4 |
| 2000 | 59.3 | 58.2 |
| 1999 | 59.9 | 64.8 |
| 1998 | 59.8 | 64.7 |
| 1997 | 52.8 | 66.6 |
| 1996 | - | 66.2 |
| 1995 | - | 62.9 |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09).
GeoRank.org/economy/cambodia/uganda | CC BY
The Economic Freedom Index for Cambodia is 58.7, ranking 108/197, compared to 52.4 for Uganda, ranking 149/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Cambodia
|
Uganda
|
|
|---|---|---|
| Services, % of GDP |
35.6%
2024 |
43.1%
2024 |
| Industry, % of GDP |
41.8%
2024 |
24.9%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
16.6%
2024 |
24.6%
2024 |
|
GNI, Atlas method
|
$44.9B
2024 |
$50.9B
2024 |
| GNI per capita, PPP |
$7,910
2024 |
$3,190
2024 |
| Total reserves including gold |
$22.5B
2024 |
$3.36B
2018 |
| Total reserves ranking |
58/177
2024 |
114/177
2018 |
|
Net foreign direct investment
|
-$4.22B
2024 |
-$3.26B
2024 |
|
Net inflows of foreign direct investment
|
$4.39B
2024 |
$3.26B
2024 |
|
Net outflows of foreign direct investment
|
$172M
2024 |
$400K
2024 |
|
Servicing debt to the IMF, % of GNI
|
7.41%
2024 |
2.96%
2024 |
| Poverty at national poverty lines |
17.7%
2012 |
20.3%
2019 |
|
Gross capital formation, % of GDP
|
32.2%
2024 |
22.4%
2024 |
GDP per capita map
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/cambodia/uganda | CC BY
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Data sources:
- World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06)
- International Monetary Fund (IMF) | Fiscal Monitor (1996–2024, retrieved 2026-02-20)
- The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09)
- U.S. Census Bureau (1985–2024, retrieved 2026-02-08)
- TradeMap (2020–2024, retrieved 2026-02-08)
- United Nations | World Population Prospects (2026, retrieved 2026-03-10)
- LivingCost (2026, retrieved 2025-10-14)
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.