Skip to content

Economy of Croatia vs Netherlands compared: GDP & Debt

Updated on by Georank

Croatia has a GDP of $105B compared to $1.33T for the Netherlands, ranking 73/197 and 18/197 by economy size, respectively.

Croatia has $58.7B in government debt (55.9% of GDP), compared to $578B (43.3% of GDP) in the Netherlands.

Croatia vs Netherlands GDP by year

Croatia
Netherlands
1x
Year GDP, current $
Croatia Netherlands
2025 $105,060,182,186 $1,332,767,651,100
2024 $92,981,894,168 $1,213,936,238,063
2023 $85,621,337,533 $1,135,475,867,551
2022 $71,196,460,237 $1,046,540,797,549
2021 $69,002,262,505 $1,054,472,123,450
2020 $57,959,824,238 $932,560,861,701
2019 $61,467,261,345 $928,903,005,576
2018 $61,668,280,700 $929,733,599,797
2017 $56,182,225,079 $848,233,537,846
2016 $52,650,804,052 $797,163,949,290
2015 $50,999,271,059 $775,743,675,303
2014 $59,607,109,597 $901,556,501,756
2013 $59,846,869,999 $883,951,539,007
2012 $57,547,495,860 $845,689,017,066
2011 $62,889,150,894 $913,140,741,333
2010 $58,975,127,201 $852,464,982,433
2009 $62,315,450,611 $878,954,223,140
2008 $68,473,103,477 $957,901,566,041
2007 $59,290,547,254 $853,499,460,873
2006 $49,583,643,048 $737,593,995,289
2005 $45,012,776,906 $688,133,699,636
2004 $41,836,096,243 $661,224,886,143
2003 $35,244,797,329 $582,435,617,082
2002 $26,757,633,353 $475,529,972,123
2001 $23,067,071,478 $432,536,219,669
2000 $22,134,069,750 $417,649,282,154
1999 $23,776,940,769 $447,778,514,140
1998 $25,889,813,449 $438,612,530,549
1997 $24,175,272,572 $417,506,211,882
1996 $24,151,469,717 $451,372,549,020
1995 $22,772,224,146 $452,967,334,614
1994 $15,062,911,617 $379,688,232,232
1993 $11,259,647,874 $354,070,495,966
1992 $10,621,169,291 $363,497,050,125
1991 $18,760,386,775 $327,982,316,124
1990 $25,650,213,280 $318,799,003,994
1989 - $258,716,904,292
1988 - $262,295,966,105
1987 - $245,406,949,521
1986 - $201,157,708,221
1985 - $144,057,523,222
1984 - $144,124,462,912
1983 - $153,671,294,109
1982 - $158,712,765,536
1981 - $164,375,775,854
1980 - $195,439,301,707
1979 - $179,933,827,310
1978 - $156,089,077,205
1977 - $127,203,923,857
1976 - $109,329,386,564
1975 - $100,397,061,694
1974 - $87,371,810,804
1973 - $71,946,639,603
1972 - $54,787,070,173
1971 - $44,644,730,576
1970 - $38,220,884,519
1969 - $34,086,038,090
1968 - $30,097,635,751
1967 - $27,143,828,099
1966 - $24,741,480,717
1965 - $22,721,869,808
1964 - $20,232,048,553
1963 - $17,193,744,109
1962 - $15,847,582,341
1961 - $14,599,836,396
1960 - $13,282,979,015

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

GeoRank.org/economy/croatia/netherlands | CC BY

GDP per capita in Croatia vs Netherlands by year

Croatia
GDP per capita

GDP per capita, PPP
Netherlands
GDP per capita

GDP per capita, PPP
1x
Year Current $
Croatia Netherlands
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $27,104 - $73,684 -
2024 $24,050 $49,551 $67,465 $86,174
2023 $22,183 $47,760 $63,516 $81,729
2022 $18,466 $42,125 $59,123 $78,630
2021 $17,789 $36,930 $60,142 $68,574
2020 $14,808 $31,594 $53,468 $62,597
2019 $15,564 $33,064 $53,555 $62,345
2018 $15,460 $29,789 $53,955 $58,819
2017 $13,902 $27,888 $49,514 $56,038
2016 $12,820 $25,803 $46,809 $53,162
2015 $12,284 $23,750 $45,794 $50,957
2014 $14,187 $22,706 $53,457 $49,751
2013 $14,135 $22,430 $52,602 $49,622
2012 $13,508 $21,619 $50,474 $47,653
2011 $14,692 $21,191 $54,702 $47,004
2010 $13,730 $20,139 $51,306 $45,301
2009 $14,475 $20,358 $53,172 $44,959
2008 $15,888 $21,018 $58,247 $46,714
2007 $13,756 $19,568 $52,101 $44,203
2006 $11,501 $17,629 $45,124 $41,208
2005 $10,443 $15,451 $42,165 $37,778
2004 $9,719 $14,686 $40,611 $35,961
2003 $8,190 $13,692 $35,897 $34,286
2002 $6,220 $12,775 $29,447 $34,568
2001 $5,365 $11,653 $26,956 $33,259
2000 $4,954 $10,675 $26,225 $31,895
1999 $5,269 $9,943 $28,319 $29,316
1998 $5,712 $9,890 $27,924 $27,749
1997 $5,331 $9,536 $26,745 $26,062
1996 $5,300 $8,806 $29,064 $24,564
1995 $4,929 $8,052 $29,301 $23,480
1994 $3,238 $7,337 $24,683 $22,414
1993 $2,448 $6,861 $23,156 $21,443
1992 $2,321 $7,326 $23,939 $20,831
1991 $4,001 $7,918 $21,764 $20,177
1990 $5,369 $9,526 $21,322 $19,203
1989 - - $17,423 -
1988 - - $17,771 -
1987 - - $16,734 -
1986 - - $13,804 -
1985 - - $9,941 -
1984 - - $9,992 -
1983 - - $10,696 -
1982 - - $11,089 -
1981 - - $11,537 -
1980 - - $13,812 -
1979 - - $12,817 -
1978 - - $11,196 -
1977 - - $9,180 -
1976 - - $7,937 -
1975 - - $7,346 -
1974 - - $6,450 -
1973 - - $5,353 -
1972 - - $4,110 -
1971 - - $3,384 -
1970 - - $2,931 -
1969 - - $2,647 -
1968 - - $2,364 -
1967 - - $2,155 -
1966 - - $1,986 -
1965 - - $1,848 -
1964 - - $1,668 -
1963 - - $1,437 -
1962 - - $1,342 -
1961 - - $1,254 -
1960 - - $1,156 -

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

GeoRank.org/economy/croatia/netherlands | CC BY

Croatia's GDP per capita is $27,104, ranking 49/197, compared to $73,684 in the Netherlands, ranking 12/197. Adjusted for purchasing power (GDP per capita PPP), Croatia ranks 46th at $49,551, while the Netherlands ranks 11th at $86,174.

Economic indicators

Croatia Netherlands
Gross domestic product
$105B
2025
$1.33T
2025
GDP rank
73/197
2025
18/197
2025
GDP growth
3.4%
2024-2025
1.78%
2024-2025
GDP per capita
$27,104
2025
$73,684
2025
GDP per capita rank
49/197
2025
12/197
2025
GDP per capita, PPP
$49,551
2024
$86,174
2024
GDP per capita PPP rank
46/197
2024
11/197
2024
Government debt
$58.7B
2025
$578B
2025
Debt-to-GDP ratio
55.9%
2025
43.3%
2025
Government debt per person
$15,144
2025
$31,942
2025
Government debt per person rank
44/185
2025
23/185
2025
Average annual personal income after taxes
$20,376
2026
$46,674
2026
Market capitalization of domestic companies
$37.9B
2025
$1.1T
2017
Number of millionaires n/a
1,294,000
2026
Number of billionaires
1
2026
13
2026
Income share by richest 10%
23.3%
2023
21.4%
2021
Income share by poorest 10%
2.9%
2023
3.6%
2021
Government expenditure, % of GDP
49.3%
2025
45.1%
2025
Consumer prices inflation
3.69%
2024-2025
3.26%
2024-2025
Unemployment rate
4.9%
2025
3.9%
2025
Population
3849788
18243998

Spending and national debt comparison by year

Croatia
Spending

Debt
Netherlands
Spending

Debt
1x
Year % of GDP
Croatia Netherlands
Government spending Government debt Government spending Government debt
2025 49.3% 55.9% 45.1% 43.3%
2024 48% 57.4% 44.4% 43.7%
2023 46.3% 60.9% 44% 45.8%
2022 45% 68.5% 43.3% 48.4%
2021 48.2% 78.2% 45.9% 50.5%
2020 53.8% 86.5% 47.8% 53.4%
2019 44.4% 70.9% 42.1% 47.7%
2018 45% 72.8% 42.4% 51.6%
2017 44.1% 76.2% 42.8% 56%
2016 45.9% 79.3% 43.9% 60.9%
2015 47.6% 82.8% 45.3% 63.8%
2014 48.7% 83.2% 46.7% 67.2%
2013 48% 79.5% 47.5% 67.2%
2012 47.3% 68.9% 47.6% 65.7%
2011 48.6% 63.1% 47.8% 61.2%
2010 48.2% 56.8% 48.9% 58.9%
2009 49.3% 47.9% 48.4% 56.3%
2008 46.3% 38.9% 44.3% 54.4%
2007 46.4% 37.1% 43.3% 42.7%
2006 44.6% 38.4% 44% 45%
2005 46.5% 40.9% 43.4% 49.6%
2004 49% 40% 44.7% 50.1%
2003 49.6% 37.8% 45.8% 49.8%
2002 49.2% 36.5% 44.8% 48.7%
2001 50.6% 36.6% 44.1% 49.4%
2000 54.6% 35.4% 43.2% 52.2%
1999 58.9% 30% 44.3% 58.6%
1998 56.8% 23.3% 44.6% 62.7%
1997 51.7% 22.5% 45.7% 65.7%
1996 52.1% - 47.3% 71.2%
1995 50.3% - 53.9% 73%
1994 45.4% - 49.4% 73.5%
1993 35.9% - 50.9% 76.7%
1992 37.1% - 50.2% 75.6%
1991 - - 49.6% 74.8%
1990 - - 48.8% 75%
1989 - - 54.5% 73.7%
1988 - - 56.4% 73.7%
1987 - - 58.5% 71.3%
1986 - - 57% 68.9%
1985 - - 57.3% 67.1%
1984 - - 58.1% 61.9%
1983 - - 59.1% 58.4%
1982 - - 59.1% 52.4%
1981 - - 56.8% 46.9%
1980 - - 55.2% 43.6%
1979 - - 53.7% 39.5%
1978 - - 52.3% 38.1%
1977 - - 50.6% 34.9%
1976 - - 50.8% 35.2%
1975 - - 50.8% 36.1%
1974 - - 46.4% 36.3%
1973 - - 44.6% 38.1%
1972 - - 44.9% 41.3%
1971 - - 44.6% 43.7%
1970 - - 43.2% 46.1%
1969 - - 42.1% 48.2%
1968 - - 25.4% 54.4%
1967 - - 24.1% 55%
1966 - - 24.4% 55.6%
1965 - - 23.4% 55.8%
1964 - - 22.3% 57.1%
1963 - - 21.9% 61.7%
1962 - - 22.1% 63.8%
1961 - - 22.2% 65.9%
1960 - - 20.4% 66.7%

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/croatia/netherlands | CC BY

In 2025, Croatia's government spending was $51.8B, accounting for 49.3% of its GDP, while the Netherlands spent $602B, or 45.1% of GDP.

Debt-to-GDP ratio is 55.9% in Croatia and 43.3% in the Netherlands, ranking 87/185 and 121/185, respectively.

Government deficit by year

Deficit/surplus
Croatia

Netherlands
1x
Year Deficit/surplus, % of GDP
Croatia Netherlands
2025 -2.89% -1.84%
2024 -1.95% -0.94%
2023 -0.79% -0.37%
2022 0.14% 0.002%
2021 -2.57% -2.26%
2020 -7.24% -3.72%
2019 2.32% 1.91%
2018 0.22% 1.49%
2017 0.81% 1.35%
2016 -1.04% 0.23%
2015 -3.53% -1.84%
2014 -5.19% -2.17%
2013 -5.51% -2.87%
2012 -5.46% -3.83%
2011 -7.51% -4.42%
2010 -6.45% -5.3%
2009 -7.15% -5.06%
2008 -2.33% -0.06%
2007 -2.27% -0.16%
2006 -2% 0.04%
2005 -3.24% -0.51%
2004 -6.09% -1.82%
2003 -5.03% -3.19%
2002 -4.9% -2.23%
2001 -4.79% -0.47%
2000 -9.2% 1.14%
1999 -11.1% 0.28%
1998 -6.36% -1.34%
1997 -4.93% -1.6%
1996 -4.41% -1.91%
1995 -4.23% -8.72%
1994 -0.82% -3.53%
1993 -2.67% -3.13%
1992 -5.69% -3.12%
1991 - -2.05%
1990 - -4.08%
1989 - -5%
1988 - -4.23%
1987 - -5.39%
1986 - -4.62%
1985 - -3.6%
1984 - -5.25%
1983 - -5.47%
1982 - -6.17%
1981 - -4.92%
1980 - -3.95%
1979 - -2.46%
1978 - -2.09%
1977 - -0.75%
1976 - -2.02%
1975 - -2.82%
1974 - -0.26%
1973 - 0.54%
1972 - -0.7%
1971 - -1.58%
1970 - -1.52%
1969 - -1.14%
1968 - -3.06%
1967 - -1.97%
1966 - -2.37%
1965 - -1.15%
1964 - -1.2%
1963 - -0.54%
1962 - -1.38%
1961 - -0.38%
1960 - 0.9%
1959 - -0.74%
1958 - -0.89%
1957 - 0.3%
1956 - -0.83%
1955 - -0.25%
1954 - 0.76%
1953 - -2.95%
1952 - 2.19%
1951 - 2.13%
1950 - 0.81%
1949 - 2.3%
1948 - -
1947 - -
1946 - -
1945 - -
1944 - -
1943 - -
1942 - -
1941 - -
1940 - -
1939 - -3.19%
1938 - -0.37%
1937 - 0.02%
1936 - -0.41%
1935 - -0.69%
1934 - -0.92%
1933 - -2.55%
1932 - -1.97%
1931 - -1.66%
1930 - -0.55%
1929 - -1.16%
1928 - -0.62%
1927 - -0.33%
1926 - -0.78%
1925 - -2.04%
1924 - -3.37%
1923 - -2.62%
1922 - -
1921 - -
1920 - -
1919 - -
1918 - -
1917 - -
1916 - -
1915 - -
1914 - -
1913 - -0.45%
1912 - -0.47%
1911 - -0.13%
1910 - -0.93%
1909 - -0.34%
1908 - -0.57%
1907 - 0.03%
1906 - 0.16%
1905 - 0.1%
1904 - -0.72%
1903 - 0.09%
1902 - -0.14%
1901 - 0.03%
1900 - 0.06%
1899 - -0.13%
1898 - -0.48%
1897 - -0.45%
1896 - 0.08%
1895 - -0.06%
1894 - 0.12%
1893 - -0.76%
1892 - -1.72%
1891 - -0.06%
1890 - -0.06%
1889 - 0.04%
1888 - -0.31%
1887 - -0.37%
1886 - -0.08%
1885 - -0.55%
1884 - 0%
1883 - -2.1%
1882 - -1.11%
1881 - -1.06%
1880 - 0.21%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1880–1989, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/croatia/netherlands | CC BY

In 2025, Croatia's government deficit, the difference between spending and revenue, was $3.04B, equivalent to 2.89% of GDP. This compares to the Netherlands' deficit of $24.5B, or 1.84% of GDP.

Over the past 34 years, Croatia recorded a fiscal deficit in 30 of those years, while the Netherlands ran a deficit in 26 years. On average, Croatia posted an annual deficit equal to 3.94% of GDP, compared to deficit of 1.76% of GDP for the Netherlands.

Inflation comparison by year

Inflation
Croatia

Netherlands
1x
Year Consumer prices inflation
Croatia Netherlands
2025 3.69% 3.26%
2024 2.97% 3.35%
2023 7.94% 3.84%
2022 10.8% 10%
2021 2.55% 2.68%
2020 0.15% 1.27%
2019 0.77% 2.63%
2018 1.5% 1.7%
2017 1.13% 1.38%
2016 -1.12% 0.32%
2015 -0.46% 0.6%
2014 -0.22% 0.98%
2013 2.22% 2.51%
2012 3.41% 2.46%
2011 2.27% 2.34%
2010 1.03% 1.28%
2009 2.38% 1.19%
2008 6.08% 2.49%
2007 2.9% 1.61%
2006 3.19% 1.1%
2005 3.32% 1.69%
2004 2.06% 1.26%
2003 1.77% 2.09%
2002 1.67% 3.29%
2001 3.78% 4.16%
2000 4.61% 2.36%
1999 4.02% 2.16%
1998 6.4% 1.96%
1997 4.17% 2.11%

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

GeoRank.org/economy/croatia/netherlands | CC BY

Over the past 29 years, Croatia has recorded an average annual inflation rate of 2.93%, compared with 2.35% in the Netherlands. In 2025, inflation was 3.69% in Croatia and 3.26% in the Netherlands.

Top exports between countries

Croatia
Export category Export value
Transport & tourism services $367M
Machinery & equipment $221M
Business & finance services $156M
Processed food, beverages & tobacco $83.9M
IT & IP services $62.8M
Textiles & consumer goods $58.8M
Chemicals & pharma $55.8M
Wood & paper products $38.4M
Metals $38.3M
Manufacturing & construction services $33.6M
Netherlands
Export category Export value
Machinery & equipment $537M
Animal & marine products $307M
Chemicals & pharma $275M
Business & finance services $250M
Raw agricultural goods $162M
Processed food, beverages & tobacco $156M
IT & IP services $137M
Textiles & consumer goods $122M
Transport & tourism services $94.2M
Raw materials & minerals $51.8M

Balance of trade

Croatia Netherlands
Current account balance
-$1.93B
2024
$111B
2024
Current account balance ranking
141/190
2024
6/190
2024
Current account balance, % of GDP
-2.08%
2024
+9.14%
2024
Goods imports
$42.5B
2024
$606B
2024
Goods exports
$21.9B
2024
$693B
2024
Service imports
$8.42B
2024
$262B
2024
Service exports
$24.8B
2024
$308B
2024
Imports of goods and services, % of GDP
53%
2025
69.5%
2025
Exports of goods and services, % of GDP
48%
2025
80.7%
2025

Economic freedom indices

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

Croatia Netherlands
Economic freedom 67.5 78.5
Economic freedom ranking 56/197 11/197
Property rights 81.1 96
Government integrity 52.6 86.8
Judicial effectiveness 71.7 96.1
Tax burden 70 54
Government spending 34.9 42.2
Fiscal health 92.2 95.9
Business freedom 79.6 85
Labor freedom 58.9 59.3
Monetary freedom 69.9 77
Trade freedom 79.4 79.4
Investment freedom 60 90
Financial freedom 60 80

Economic freedom comparison by year

Croatia
Netherlands
1x
Year Economic freedom index
Croatia Netherlands
2026 67.5 78.5
2025 68.7 78.2
2024 67.2 77.3
2023 66.4 78
2022 67.6 79.5
2021 63.6 76.8
2020 62.2 77
2019 61.4 76.8
2018 61 76.2
2017 59.4 75.8
2016 59.1 74.6
2015 61.5 73.7
2014 60.4 74.2
2013 61.3 73.5
2012 60.9 73.3
2011 61.1 74.7
2010 59.2 75
2009 55.1 77
2008 54.1 77.4
2007 53.4 75.5
2006 53.6 75.4
2005 51.9 72.9
2004 53.1 74.5
2003 53.3 74.6
2002 51.1 75.1
2001 50.7 73
2000 53.6 70.4
1999 53.1 70.2
1998 51.7 69.2
1997 46.7 70.4
1996 48 69.7

Data sources: The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-07-08).

GeoRank.org/economy/croatia/netherlands | CC BY

The Economic Freedom Index for Croatia is 67.5, ranking 56/197, compared to 78.5 for the Netherlands, ranking 11/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Croatia Netherlands
Services, % of GDP
60.9%
2025
70.4%
2025
Industry, % of GDP
19%
2025
17.7%
2025
Agriculture, forestry, and fishing, % of GDP
2.83%
2025
1.68%
2025
GNI, Atlas method
$98.3B
2025
$1.24T
2025
GNI per capita, PPP
$50,410
2025
$85,480
2025
Total reserves including gold
$4.22B
2025
$118B
2025
Total reserves ranking
110/177
2025
27/177
2025
Net foreign direct investment
-$1.74B
2024
$11.1B
2024
Net inflows of foreign direct investment
$4.54B
2024
-$17.1B
2024
Net outflows of foreign direct investment
$2.79B
2024
-$5.93B
2024
Poverty at national poverty lines
20.3%
2024
14.5%
2021
Gross capital formation, % of GDP
24.6%
2025
19.8%
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/croatia/netherlands | CC BY

Compare countries by 7 more topics

Help us show the world through your eyes

Share a photo of your city and help others discover what it looks like to live there. Your contribution makes our data come alive.

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 (1880–1997, retrieved 2026-07-08)
  4. The Heritage Foundation | Economic Freedom Index (1996–2026, 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)

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.

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.