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Economy of Colombia vs Sri Lanka compared: GDP & Debt

Updated on by Georank

Colombia has a GDP of $457B compared to $109B for Sri Lanka, ranking 37/197 and 71/197 by economy size, respectively.

Colombia has $274B in government debt (59.9% of GDP), compared to $100B (100.8% of GDP) in Sri Lanka.

Colombia vs Sri Lanka GDP by year

Colombia
Sri Lanka
1x
Year GDP, current $
Colombia Sri Lanka
2025 $457,410,034,203 $108,825,231,671
2024 $420,504,033,143 $99,616,111,266
2023 $366,901,643,683 $84,080,307,356
2022 $345,632,492,851 $74,143,020,304
2021 $318,524,633,225 $88,556,699,052
2020 $270,348,342,541 $84,335,574,372
2019 $323,031,701,193 $88,998,706,178
2018 $334,198,218,098 $94,450,015,983
2017 $311,866,875,157 $94,369,350,439
2016 $282,720,100,286 $88,000,210,878
2015 $293,492,370,193 $85,090,300,896
2014 $381,240,864,422 $82,531,125,462
2013 $382,093,697,078 $76,976,204,075
2012 $370,691,143,018 $70,447,216,891
2011 $334,966,134,805 $67,753,285,882
2010 $286,498,534,095 $58,636,049,581
2009 $232,468,663,110 $42,066,224,093
2008 $242,504,150,473 $40,713,826,215
2007 $206,229,540,926 $32,350,238,760
2006 $161,792,958,905 $28,267,410,543
2005 $145,600,529,606 $24,405,791,045
2004 $117,092,416,666 $20,662,525,941
2003 $94,644,969,157 $18,881,765,437
2002 $97,945,812,803 $16,536,535,647
2001 $98,200,641,203 $15,749,753,805
2000 $99,875,074,951 $16,595,882,819
1999 $86,186,158,685 $15,711,933,513
1998 $98,443,739,941 $15,760,736,956
1997 $106,659,508,271 $15,091,913,884
1996 $97,160,109,278 $13,897,738,375
1995 $92,507,279,383 $13,029,697,561
1994 $81,703,500,846 $11,717,604,209
1993 $66,446,804,803 $10,338,679,636
1992 $58,418,985,443 $9,703,011,636
1991 $49,175,565,911 $9,000,362,582
1990 $47,844,090,710 $8,032,551,173
1989 $39,540,080,200 $6,987,267,684
1988 $39,212,550,050 $6,978,371,581
1987 $36,373,307,085 $6,682,167,120
1986 $34,942,489,684 $6,405,210,564
1985 $34,894,411,352 $5,978,460,972
1984 $38,253,120,738 $6,043,474,843
1983 $38,729,822,782 $5,167,913,302
1982 $38,968,039,722 $4,768,765,017
1981 $36,388,366,869 $4,415,844,156
1980 $33,400,735,644 $4,024,621,900
1979 $27,940,411,250 $3,364,611,432
1978 $23,263,511,958 $2,733,183,857
1977 $19,470,960,619 $4,104,509,583
1976 $15,341,403,660 $3,591,319,857
1975 $13,098,633,902 $3,791,298,146
1974 $12,370,029,584 $3,574,586,466
1973 $10,315,760,000 $2,875,625,000
1972 $8,671,358,733 $2,553,936,348
1971 $7,820,380,971 $2,369,308,600
1970 $7,198,360,460 $2,296,470,588
1969 $6,450,175,214 $1,965,546,218
1968 $5,960,212,869 $1,801,344,538
1967 $5,825,170,438 $1,859,465,021
1966 $5,428,518,519 $1,751,470,588
1965 $5,760,761,905 $1,698,319,328
1964 $5,973,366,667 $1,309,747,899
1963 $4,836,166,667 $1,240,672,269
1962 $4,955,543,963 $1,434,156,379
1961 $4,540,447,761 $1,444,327,731
1960 $4,031,152,977 $1,409,873,950

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

GeoRank.org/economy/colombia/sri-lanka | CC BY

GDP per capita in Colombia vs Sri Lanka by year

Colombia
GDP per capita

GDP per capita, PPP
Sri Lanka
GDP per capita

GDP per capita, PPP
1x
Year Current $
Colombia Sri Lanka
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $8,562 - $5,002 -
2024 $7,951 $22,349 $4,545 $15,633
2023 $7,012 $21,246 $3,815 $14,456
2022 $6,680 $20,854 $3,343 $14,194
2021 $6,223 $17,383 $3,997 $14,316
2020 $5,340 $15,519 $3,848 $12,941
2019 $6,473 $16,182 $4,082 $14,113
2018 $6,817 $15,239 $4,359 $14,178
2017 $6,480 $14,401 $4,399 $13,610
2016 $5,960 $14,027 $4,149 $13,079
2015 $6,249 $13,332 $4,058 $12,227
2014 $8,187 $13,355 $3,972 $11,721
2013 $8,279 $12,780 $3,739 $11,253
2012 $8,109 $12,093 $3,328 $10,249
2011 $7,401 $11,707 $3,225 $9,076
2010 $6,398 $10,841 $2,808 $8,234
2009 $5,251 $10,367 $2,027 $7,576
2008 $5,542 $10,307 $1,974 $7,317
2007 $4,770 $9,909 $1,579 $6,820
2006 $3,790 $9,154 $1,389 $6,261
2005 $3,456 $8,432 $1,207 $5,679
2004 $2,819 $7,909 $1,029 $5,216
2003 $2,312 $7,420 $946 $4,850
2002 $2,429 $7,109 $835 $4,522
2001 $2,473 $6,935 $804 $4,328
2000 $2,555 $6,776 $860 $4,368
1999 $2,241 $6,544 $829 $4,103
1998 $2,605 $6,854 $848 $3,952
1997 $2,873 $6,861 $827 $3,804
1996 $2,665 $6,639 $776 $3,582
1995 $2,584 $6,506 $742 $3,454
1994 $2,326 $6,174 $678 $3,260
1993 $1,929 $5,826 $607 $3,067
1992 $1,730 $5,509 $580 $2,851
1991 $1,486 $5,281 $546 $2,713
1990 $1,475 $5,109 $491 $2,527
1989 $1,244 - $430 -
1988 $1,260 - $434 -
1987 $1,193 - $420 -
1986 $1,169 - $407 -
1985 $1,192 - $385 -
1984 $1,336 - $391 -
1983 $1,384 - $336 -
1982 $1,425 - $312 -
1981 $1,362 - $292.5 -
1980 $1,280 - $271.1 -
1979 $1,095 - $230.8 -
1978 $932 - $191 -
1977 $798 - $292.1 -
1976 $643 - $260.3 -
1975 $561 - $279.8 -
1974 $542 - $268.7 -
1973 $462 - $220.2 -
1972 $397 - $199.4 -
1971 $367 - $188.8 -
1970 $346 - $186.9 -
1969 $318 - $163.6 -
1968 $302 - $153.5 -
1967 $303 - $162.3 -
1966 $290.3 - $156.6 -
1965 $317 - $155.6 -
1964 $339 - $122.9 -
1963 $282.6 - $119.4 -
1962 $298.5 - $141.4 -
1961 $282.1 - $145.9 -
1960 $258.3 - $145.9 -

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

GeoRank.org/economy/colombia/sri-lanka | CC BY

Colombia's GDP per capita is $8,562, ranking 94/197, compared to $5,002 in Sri Lanka, ranking 124/197. Adjusted for purchasing power (GDP per capita PPP), Colombia ranks 87th at $22,349, while Sri Lanka ranks 111th at $15,633.

Economic indicators

Colombia Sri Lanka
Gross domestic product
$457B
2025
$109B
2025
GDP rank
37/197
2025
71/197
2025
GDP growth
2.64%
2024-2025
4.95%
2024-2025
GDP per capita
$8,562
2025
$5,002
2025
GDP per capita rank
94/197
2025
124/197
2025
GDP per capita, PPP
$22,349
2024
$15,633
2024
GDP per capita PPP rank
87/197
2024
111/197
2024
Government debt
$274B
2025
$100B
2024
Debt-to-GDP ratio
59.9%
2025
100.8%
2024
Government debt per person
$5,126
2025
$4,584
2024
Government debt per person rank
85/185
2025
90/185
2024
Average annual personal income after taxes
$6,463
2026
$2,830
2026
Market capitalization of domestic companies
$133B
2025
$26.1B
2025
Number of billionaires
4
2026
n/a
Income share by richest 10%
42.7%
2024
30.8%
2019
Income share by poorest 10%
1%
2024
3.1%
2019
Government expenditure, % of GDP
33.2%
2025
19.1%
2024
Consumer prices inflation
5.14%
2024-2025
-4.76%
2024-2025
Central bank interest rate
11.3%
2026
7.75%
2025
Unemployment rate
8.43%
2025
4.32%
2024
Population
54209462
21926160

Spending and national debt comparison by year

Colombia
Spending

Debt
Sri Lanka
Spending

Debt
1x
Year % of GDP
Colombia Sri Lanka
Government spending Government debt Government spending Government debt
2025 33.2% 59.9% - -
2024 34.4% 61% 19.1% 100.8%
2023 35.1% 55.4% 19.5% 110.4%
2022 34.1% 61.3% 18.6% 115.9%
2021 34.5% 64.4% 20% 102.7%
2020 33.7% 65.3% 22.1% 96.9%
2019 32.9% 51% 19.5% 82.6%
2018 34.7% 51.8% 17.5% 83.6%
2017 29.3% 49.4% 17.9% 72.3%
2016 30% 49.9% 18.2% 75%
2015 31.3% 50.4% 19.3% 76.3%
2014 31.3% 43.3% 17.2% 69.6%
2013 30% 37.6% 16.6% 69.5%
2012 29.1% 34% 17.3% 67.5%
2011 30.2% 35.8% 19.1% 69.4%
2010 30.4% 36.5% 19.3% 68.7%
2009 30.9% 35.4% 21% 72.8%
2008 28.4% 32.4% 19.1% 68.8%
2007 28.2% 32.7% 19.9% 71.8%
2006 28.4% 36% 20.5% 74.3%
2005 25.9% 38.5% 20.1% 76.6%
2004 26.6% 41.5% 19.3% 86.5%
2003 28% 45% 19.3% 86.5%
2002 28.1% 47.5% 20.8% 96.3%
2001 27.5% 41.1% 22.4% 84.4%
2000 26.6% 38% 21.7% 79.2%
1999 28.3% 34% 20.5% 77.7%
1998 26.3% 27.5% 21.4% 74.2%
1997 26.2% 25.3% 21.4% 70.1%
1996 25.1% 23.3% 23.1% 76.2%
1995 22.2% 13.8% 24.8% 77.8%
1994 20.6% 12.5% 24.1% 77.9%
1993 20% 14.2% 23.2% 79.2%
1992 18.4% 16.1% 23% 77.9%
1991 17.7% 14.5% 26.4% 80.5%
1990 17.4% 16.7% 25.4% 78.9%
1989 10.3% 17.3% - -
1988 10.3% 17.9% - -
1987 9.7% 18.9% - -
1986 9.8% 20.2% - -
1985 10.5% 19.3% - -
1984 10.3% 15.5% - -
1983 10.2% 10.8% - -
1982 10.6% 8.8% - -
1981 9.9% 8.5% - -
1980 9.6% 8% - -
1979 8.6% 7.7% - -
1978 8.1% 7.6% - -
1977 7.7% 9.2% - -
1976 8% 12.2% - -
1975 9.4% 14.6% - -
1974 8.8% 15.9% - -
1973 9.4% 16.3% - -
1972 10.3% 16.9% - -
1971 10.3% 16.2% - -
1970 10% 16.7% - -
1969 9.2% 17% - -
1968 8.9% 16.2% - -
1967 8.2% 15.8% - -
1966 8% 15.3% - -
1965 7% 15.2% - -
1964 8.1% 13.1% - -
1963 8.6% 13.9% - -
1962 7.8% 14.8% - -
1961 8.6% 8.7% - -
1960 6.7% 7.2% - -

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1995, retrieved 2026-07-08).

GeoRank.org/economy/colombia/sri-lanka | CC BY

In 2025, Colombia's government spending was $152B, accounting for 33.2% of its GDP, while Sri Lanka spent $19B, or 19.1% of GDP.

Debt-to-GDP ratio is 59.9% in Colombia and 100.8% in Sri Lanka, ranking 78/185 and 24/185, respectively.

Government deficit by year

Deficit/surplus
Colombia

Sri Lanka
1x
Year Deficit/surplus, % of GDP
Colombia Sri Lanka
2025 -5.75% -
2024 -6.04% -5.43%
2023 -2.92% -8.32%
2022 -6.36% -10.2%
2021 -7.28% -11.7%
2020 -7.12% -13.4%
2019 -3.48% -7.52%
2018 -4.67% -4.96%
2017 -2.5% -5.1%
2016 -2.27% -5%
2015 -3.52% -6.64%
2014 -1.74% -5.99%
2013 -1.02% -5%
2012 0.15% -5.44%
2011 -1.99% -6.01%
2010 -3.3% -6.73%
2009 -2.67% -8.33%
2008 0.04% -5.93%
2007 -0.82% -5.81%
2006 -0.99% -5.91%
2005 -0.02% -5.93%
2004 -1.31% -6.32%
2003 -2.7% -6.15%
2002 -3.45% -6.9%
2001 -2.71% -8.48%
2000 -2.94% -7.78%
1999 -5.37% -5.58%
1998 -3.86% -6.79%
1997 -3.23% -5.71%
1996 -2.49% -6.89%
1995 -1% -7.11%
1994 -0.14% -7.41%
1993 -0.24% -5.77%
1992 -0.07% -4.95%
1991 0.35% -7.97%
1990 -0.41% -6.39%
1989 -1.4% -
1988 -1.3% -
1987 -0.4% -
1986 -1.4% -
1985 -2.4% -
1984 -3.3% -
1983 -3.1% -
1982 -3.6% -
1981 -2.8% -
1980 -2.2% -
1979 -0.7% -
1978 0.3% -
1977 0.5% -
1976 0.6% -
1975 -0.5% -
1974 -1.2% -
1973 -1.1% -
1972 -1.7% -
1971 -1% -
1970 -0.7% -
1969 -0.5% -
1968 0% -
1967 -0.2% -
1966 0.1% -
1965 -0.6% -
1964 -1.1% -
1963 -1.7% -
1962 -1.6% -
1961 -1.5% -
1960 1.2% -
1959 2% -
1958 1.7% -
1957 1.4% -
1956 -0.2% -
1955 0.7% -
1954 1.3% -
1953 1.3% -
1952 1.6% -
1951 2.1% -
1950 0.9% -
1949 0.5% -
1948 -0.1% -
1947 0.2% -
1946 -0.5% -
1945 0.1% -
1944 -0.2% -
1943 -0.7% -
1942 -1.5% -
1941 0% -
1940 -1.5% -
1939 0.8% -
1938 0.5% -
1937 1.4% -
1936 1.1% -
1935 1.3% -
1934 0.2% -
1933 -0.4% -
1932 -0.8% -
1931 -0.2% -
1930 0.3% -
1929 0.4% -
1928 -0.4% -
1927 -0.6% -
1926 0% -
1925 1% -
1924 0.5% -
1923 0.3% -
1922 -0.7% -
1921 -1.6% -
1920 0.4% -
1919 -0.8% -
1918 -2.1% -
1917 -0.5% -
1916 0.2% -
1915 -0.2% -
1914 -0.5% -
1913 0.5% -
1912 -0.3% -
1911 -0.1% -
1910 -0.3% -
1909 -3.3% -
1908 -2.7% -
1907 -2.7% -
1906 0.2% -
1905 -0.9% -

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1905–1989, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/colombia/sri-lanka | CC BY

In 2024, Colombia's government deficit, the difference between spending and revenue, was $25.4B, equivalent to 6.04% of GDP. This compares to Sri Lanka's deficit of $5.4B, or 5.43% of GDP.

Over the past 35 years, Colombia recorded a fiscal deficit in 32 of those years, while Sri Lanka ran a deficit in 35 years. On average, Colombia posted an annual deficit equal to 2.52% of GDP, compared to deficit of 6.84% of GDP for Sri Lanka.

Inflation comparison by year

Inflation
Colombia

Sri Lanka
1x
Year Consumer prices inflation
Colombia Sri Lanka
2025 5.14% -4.76%
2024 6.61% -0.43%
2023 11.7% 16.5%
2022 10.2% 49.7%
2021 3.5% 7.01%
2020 2.53% 6.15%
2019 3.52% 3.53%
2018 3.24% 2.14%
2017 4.31% 7.7%
2016 7.51% 3.96%
2015 4.99% 3.77%
2014 2.9% 3.18%
2013 2.02% 6.91%
2012 3.17% 7.54%
2011 3.42% 6.72%
2010 2.27% 6.22%
2009 4.2% 3.46%
2008 7% 22.6%
2007 5.54% 15.8%
2006 4.29% 10%
2005 5.05% 11.6%
2004 5.9% 7.58%
2003 7.13% 6.31%
2002 6.35% 9.55%
2001 7.97% 14.2%
2000 9.23% 6.18%
1999 10.9% 4.69%
1998 18.7% 9.36%
1997 18.5% 9.57%

Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).

GeoRank.org/economy/colombia/sri-lanka | CC BY

Over the past 29 years, Colombia has recorded an average annual inflation rate of 6.47%, compared with 8.86% in Sri Lanka. In 2025, inflation was 5.14% in Colombia and -4.76% in Sri Lanka.

Top exports between countries

Colombia
Export category Export value
Raw agricultural goods $417K
Textiles & consumer goods $357K
Processed food, beverages & tobacco $230K
Machinery & equipment $53K
Chemicals & pharma $39K
Animal & marine products $34K
Raw materials & minerals $9K
Miscellaneous $3K
Precious metals & jewellery $3K
Sri Lanka
Export category Export value
Raw agricultural goods $11.7M
Textiles & consumer goods $3.62M
Raw materials & minerals $2.47M
Processed food, beverages & tobacco $1.41M
Metals $172K
Machinery & equipment $133K
Wood & paper products $67K
Miscellaneous $9K
Chemicals & pharma $8K
Precious metals & jewellery $1K

Balance of trade

Colombia Sri Lanka
Current account balance
-$10.9B
2025
$1.21B
2024
Current account balance ranking
176/190
2025
49/190
2024
Current account balance, % of GDP
-2.38%
2025
+1.21%
2024
Goods imports
$66.3B
2025
$18.8B
2024
Goods exports
$51.5B
2025
$12.8B
2024
Service imports
$19.6B
2025
$3.48B
2024
Service exports
$19.6B
2025
$6.91B
2024
Imports of goods and services, % of GDP
20.4%
2025
22.8%
2025
Exports of goods and services, % of GDP
15%
2025
19%
2025

Economic freedom indices

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

Colombia Sri Lanka
Economic freedom 59.8 50.3
Economic freedom ranking 101/197 162/197
Property rights 43.1 47.3
Government integrity 41.6 37.3
Judicial effectiveness 57.4 47.2
Tax burden 68.6 77
Government spending 64 89
Fiscal health 49.8 0
Business freedom 71.2 60.1
Labor freedom 59.1 54.3
Monetary freedom 71.9 65.9
Trade freedom 71.4 65.6
Investment freedom 60 30
Financial freedom 60 30

Economic freedom comparison by year

Colombia
Sri Lanka
1x
Year Economic freedom index
Colombia Sri Lanka
2026 59.8 50.3
2025 59.8 49.4
2024 59.2 49.2
2023 63.1 52.2
2022 65.1 53.3
2021 68.1 55.7
2020 69.2 57.4
2019 67.3 56.4
2018 68.9 57.8
2017 69.7 57.4
2016 70.8 59.9
2015 71.7 58.6
2014 70.7 60
2013 69.6 60.7
2012 68 58.3
2011 68 57.1
2010 65.5 54.6
2009 62.3 56
2008 62.2 58.4
2007 59.9 59.4
2006 60.4 58.7
2005 59.6 61
2004 61.2 61.6
2003 64.2 62.5
2002 64.2 64
2001 65.6 66
2000 63.3 63.2
1999 65.3 64
1998 65.5 64.6
1997 66.4 65.5
1996 64.3 62.5
1995 64.5 60.6

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

GeoRank.org/economy/colombia/sri-lanka | CC BY

The Economic Freedom Index for Colombia is 59.8, ranking 101/197, compared to 50.3 for Sri Lanka, ranking 162/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Colombia Sri Lanka
Services, % of GDP
58.5%
2025
54.6%
2025
Industry, % of GDP
21.8%
2025
25.4%
2025
Agriculture, forestry, and fishing, % of GDP
9.95%
2025
8.36%
2025
GNI, Atlas method
$422B
2025
$102B
2025
GNI per capita, PPP
$22,250
2025
$16,750
2025
Total reserves including gold
$65.8B
2025
$6.09B
2024
Total reserves ranking
41/177
2025
96/177
2024
Net foreign direct investment
-$7.31B
2025
-$651M
2024
Net inflows of foreign direct investment
$13.7B
2024
$761M
2024
Net outflows of foreign direct investment
$4.51B
2024
$110M
2024
Servicing debt to the IMF, % of GNI
8.17%
2024
4.96%
2024
Poverty at national poverty lines
31.8%
2024
14.3%
2019
Gross capital formation, % of GDP
16.7%
2025
29.6%
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/colombia/sri-lanka | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Public Finances in Modern History (1905–1995, 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 (2022–2025, 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.