Cyprus has a GDP of $41.2B compared to $21.6B for Niger, ranking 103/197 and 129/197 by economy size, respectively.
Cyprus has $22.8B in government debt (55.3% of GDP), compared to $9.82B (45.4% of GDP) in Niger.
Cyprus vs Niger GDP by year
| Year | GDP, current $ | |
|---|---|---|
Cyprus
|
Niger
|
|
| 2025 | $41,225,787,247 | $21,646,191,388 |
| 2024 | $37,634,551,821 | $19,729,786,047 |
| 2023 | $35,075,440,603 | $16,949,765,464 |
| 2022 | $31,218,047,044 | $15,531,799,641 |
| 2021 | $30,372,637,513 | $14,936,154,253 |
| 2020 | $25,555,082,267 | $13,648,332,190 |
| 2019 | $26,196,660,680 | $12,420,836,507 |
| 2018 | $25,754,011,492 | $12,800,907,986 |
| 2017 | $22,946,583,376 | $11,359,273,443 |
| 2016 | $21,046,452,117 | $10,341,025,540 |
| 2015 | $19,909,269,065 | $9,683,867,926 |
| 2014 | $23,225,912,183 | $10,862,943,544 |
| 2013 | $23,959,708,956 | $10,224,897,438 |
| 2012 | $25,047,433,100 | $9,426,912,648 |
| 2011 | $27,641,553,201 | $8,772,950,778 |
| 2010 | $25,799,940,416 | $7,851,192,502 |
| 2009 | $26,048,190,775 | $7,352,131,310 |
| 2008 | $27,958,384,913 | $7,297,600,226 |
| 2007 | $23,968,727,074 | $5,731,485,052 |
| 2006 | $20,072,754,987 | $4,756,361,252 |
| 2005 | $18,433,412,511 | $4,383,315,965 |
| 2004 | $17,320,551,250 | $3,760,443,738 |
| 2003 | $14,547,329,558 | $3,394,084,732 |
| 2002 | $11,420,228,846 | $2,782,192,879 |
| 2001 | $10,397,898,907 | $2,448,714,704 |
| 2000 | $9,985,847,314 | $2,241,753,193 |
| 1999 | $10,497,907,228 | $2,537,789,821 |
| 1998 | $10,248,618,778 | $2,643,363,519 |
| 1997 | $9,547,816,420 | $2,290,318,910 |
| 1996 | $10,011,914,680 | $2,405,686,940 |
| 1995 | $9,933,137,128 | $2,302,537,562 |
| 1994 | $7,425,703,929 | $1,938,058,175 |
| 1993 | $6,590,291,048 | $3,052,673,849 |
| 1992 | $6,912,150,456 | $3,386,232,579 |
| 1991 | $5,770,197,348 | $3,285,796,875 |
| 1990 | $5,591,130,218 | $3,512,356,508 |
| 1989 | $4,563,482,604 | $2,179,567,114 |
| 1988 | $4,278,792,597 | $2,280,356,193 |
| 1987 | $3,704,813,886 | $2,233,006,105 |
| 1986 | $3,090,734,463 | $1,904,096,998 |
| 1985 | $2,430,411,900 | $1,440,581,652 |
| 1984 | $2,278,248,953 | $1,461,243,326 |
| 1983 | $2,160,364,071 | $1,803,099,561 |
| 1982 | $2,159,242,417 | $2,017,612,216 |
| 1981 | $2,087,496,374 | $2,170,893,414 |
| 1980 | $2,154,311,277 | $2,508,524,721 |
| 1979 | $1,288,699,776 | $2,109,277,666 |
| 1978 | $964,024,364 | $1,774,365,590 |
| 1977 | $734,876,021 | $1,291,458,041 |
| 1976 | $576,090,074 | $1,064,517,601 |
| 1975 | $489,912,574 | $1,048,690,933 |
| 1974 | - | $1,026,137,111 |
| 1973 | - | $946,385,105 |
| 1972 | - | $742,779,661 |
| 1971 | - | $693,573,704 |
| 1970 | - | $649,916,621 |
| 1969 | - | $625,867,985 |
| 1968 | - | $641,214,226 |
| 1967 | - | $665,586,872 |
| 1966 | - | $702,296,079 |
| 1965 | - | $673,383,511 |
| 1964 | - | $582,816,396 |
| 1963 | - | $586,294,879 |
| 1962 | - | $531,736,599 |
| 1961 | - | $485,785,231 |
| 1960 | - | $449,526,873 |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/cyprus/niger | CC BY 
GDP per capita in Cyprus vs Niger by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Cyprus
|
Niger
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2025 | $30,075 | - | $775 | - |
| 2024 | $27,707 | $63,007 | $730 | $2,050 |
| 2023 | $26,079 | $59,875 | $648 | $1,875 |
| 2022 | $23,448 | $55,876 | $614 | $1,840 |
| 2021 | $23,057 | $47,633 | $610 | $1,586 |
| 2020 | $19,624 | $42,569 | $575 | $1,497 |
| 2019 | $20,360 | $44,394 | $541 | $1,419 |
| 2018 | $20,267 | $40,262 | $577 | $1,276 |
| 2017 | $18,295 | $37,768 | $530 | $1,208 |
| 2016 | $17,013 | $35,247 | $500 | $1,189 |
| 2015 | $16,326 | $31,380 | $486 | $1,172 |
| 2014 | $19,326 | $29,893 | $565 | $1,161 |
| 2013 | $20,238 | $30,416 | $552 | $1,138 |
| 2012 | $21,493 | $31,924 | $529 | $1,162 |
| 2011 | $24,110 | $33,406 | $511 | $1,064 |
| 2010 | $22,876 | $33,502 | $474 | $1,058 |
| 2009 | $23,480 | $33,901 | $461 | $999 |
| 2008 | $25,626 | $34,830 | $475 | $1,010 |
| 2007 | $22,344 | $32,888 | $387 | $955 |
| 2006 | $19,037 | $30,009 | $333 | $935 |
| 2005 | $17,790 | $27,763 | $319 | $888 |
| 2004 | $17,016 | $25,942 | $283.5 | $832 |
| 2003 | $14,553 | $24,278 | $265.2 | $837 |
| 2002 | $11,636 | $23,556 | $225.3 | $832 |
| 2001 | $10,785 | $22,866 | $205.4 | $809 |
| 2000 | $10,537 | $21,296 | $194.8 | $764 |
| 1999 | $11,273 | $19,663 | $228.3 | $783 |
| 1998 | $11,206 | $18,760 | $246.1 | $801 |
| 1997 | $10,637 | $17,781 | $220.6 | $745 |
| 1996 | $11,373 | $17,320 | $239.5 | $746 |
| 1995 | $11,514 | $17,096 | $237 | $757 |
| 1994 | $8,791 | $15,735 | $206.2 | $748 |
| 1993 | $7,978 | $14,852 | $335 | $742 |
| 1992 | $8,530 | $14,759 | $384 | $746 |
| 1991 | $7,222 | $13,546 | $384 | $738 |
| 1990 | $7,092 | $13,348 | $424 | $739 |
| 1989 | $5,870 | - | $271.3 | - |
| 1988 | $5,584 | - | $292.6 | - |
| 1987 | $4,908 | - | $295.3 | - |
| 1986 | $4,159 | - | $259.6 | - |
| 1985 | $3,324 | - | $202.4 | - |
| 1984 | $3,167 | - | $211.5 | - |
| 1983 | $3,055 | - | $268.8 | - |
| 1982 | $3,100 | - | $310 | - |
| 1981 | $3,030 | - | $343 | - |
| 1980 | $3,154 | - | $409 | - |
| 1979 | $1,902 | - | $354 | - |
| 1978 | $1,434 | - | $307 | - |
| 1977 | $1,102 | - | $229.8 | - |
| 1976 | $870 | - | $194.8 | - |
| 1975 | $743 | - | $197.2 | - |
| 1974 | - | - | $198.3 | - |
| 1973 | - | - | $187.9 | - |
| 1972 | - | - | $151.4 | - |
| 1971 | - | - | $145.2 | - |
| 1970 | - | - | $139.8 | - |
| 1969 | - | - | $138.3 | - |
| 1968 | - | - | $145.6 | - |
| 1967 | - | - | $155.4 | - |
| 1966 | - | - | $168.6 | - |
| 1965 | - | - | $166.3 | - |
| 1964 | - | - | $148.1 | - |
| 1963 | - | - | $153.3 | - |
| 1962 | - | - | $143.2 | - |
| 1961 | - | - | $134.6 | - |
| 1960 | - | - | $128.3 | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/cyprus/niger | CC BY
Cyprus' GDP per capita is $30,075, ranking 45/197, compared to $775 in Niger, ranking 188/197. Adjusted for purchasing power (GDP per capita PPP), Cyprus ranks 29th at $63,007, while Niger ranks 186th at $2,050.
Economic indicators
|
Cyprus
|
Niger
|
|
|---|---|---|
| Gross domestic product |
$41.2B
2025 |
$21.6B
2025 |
| GDP rank |
103/197
2025 |
129/197
2025 |
| GDP growth |
3.77%
2024-2025 |
7.01%
2024-2025 |
| GDP per capita |
$30,075
2025 |
$775
2025 |
| GDP per capita rank |
45/197
2025 |
188/197
2025 |
| GDP per capita, PPP |
$63,007
2024 |
$2,050
2024 |
| GDP per capita PPP rank |
29/197
2024 |
186/197
2024 |
| Government debt |
$22.8B
2025 |
$9.82B
2025 |
| Debt-to-GDP ratio |
55.3%
2025 |
45.4%
2025 |
| Government debt per person |
$16,632
2025 |
$352
2025 |
| Government debt per person rank |
40/185
2025 |
175/185
2025 |
| Average annual personal income after taxes |
$24,626
2026 |
$1,418
2026 |
| Market capitalization of domestic companies |
$27.9B
2025 |
n/a |
| Number of millionaires |
24,000
2026 |
n/a |
| Number of billionaires |
10
2026 |
n/a |
| Income share by richest 10% |
26.3%
2023 |
27.8%
2021 |
| Income share by poorest 10% |
3.6%
2023 |
3.8%
2021 |
| Government expenditure, % of GDP |
40.4%
2025 |
14.8%
2025 |
| Consumer prices inflation |
0.13%
2024-2025 |
-4.45%
2024-2025 |
| Unemployment rate |
4.4%
2025 |
0.4%
2022 |
| Population |
1388591
|
29294628
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Cyprus
|
Niger
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2025 | 40.4% | 55.3% | 14.8% | 45.4% |
| 2024 | 38.3% | 62.8% | 13.4% | 47.7% |
| 2023 | 40.6% | 71.1% | 15.8% | 51.8% |
| 2022 | 37.7% | 80.3% | 21.6% | 50.7% |
| 2021 | 42.7% | 96.5% | 24.3% | 51.3% |
| 2020 | 45.9% | 113.6% | 22.4% | 45% |
| 2019 | 40.3% | 92.3% | 21.6% | 39.8% |
| 2018 | 44.3% | 100.7% | 21.2% | 37% |
| 2017 | 38.4% | 96.4% | 19.5% | 36.5% |
| 2016 | 39.6% | 106.8% | 19.4% | 32.8% |
| 2015 | 43% | 111.6% | 24.2% | 29.9% |
| 2014 | 52.1% | 113% | 23.6% | 22.1% |
| 2013 | 42.1% | 102.7% | 20.4% | 19.6% |
| 2012 | 41.9% | 79.2% | 16.6% | 18.1% |
| 2011 | 42.1% | 64.8% | 15.3% | 14.7% |
| 2010 | 41.7% | 55.3% | 14.3% | 15.1% |
| 2009 | 41.9% | 52.8% | 17.7% | 15.9% |
| 2008 | 38.2% | 44.1% | 16.9% | 14.2% |
| 2007 | 37.6% | 53.1% | 17.4% | 17.8% |
| 2006 | 39.1% | 59% | 15.2% | 18.3% |
| 2005 | 39.7% | 64% | 15.6% | 49.5% |
| 2004 | 38.6% | 64.7% | 16.1% | 55% |
| 2003 | 40.4% | 63% | 14% | 60.6% |
| 2002 | 37.4% | 61% | 14.4% | 69% |
| 2001 | 35.7% | 57.5% | 13.7% | 74% |
| 2000 | 35% | 56% | 13.5% | 82.1% |
| 1999 | 34.3% | 55.7% | 15% | 63.3% |
| 1998 | 34.4% | 55% | 13.6% | 61.3% |
| 1997 | 34.2% | 53.5% | 12.9% | 69.1% |
| 1996 | 32.4% | 48.8% | 10.9% | 63.5% |
| 1995 | 30.4% | 46.7% | 12.5% | 69.4% |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1995–2025, retrieved 2026-07-08).
GeoRank.org/economy/cyprus/niger | CC BY
In 2025, Cyprus' government spending was $16.7B, accounting for 40.4% of its GDP, while Niger spent $3.2B, or 14.8% of GDP.
Debt-to-GDP ratio is 55.3% in Cyprus and 45.4% in Niger, ranking 89/185 and 114/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Cyprus
|
Niger
|
|
| 2025 | 2.99% | -3.28% |
| 2024 | 4.14% | -4.27% |
| 2023 | 1.71% | -5.37% |
| 2022 | 2.69% | -6.77% |
| 2021 | -1.59% | -6.1% |
| 2020 | -5.57% | -4.82% |
| 2019 | 1.03% | -3.56% |
| 2018 | -3.36% | -3.01% |
| 2017 | 2.13% | -4.12% |
| 2016 | 0.45% | -4.46% |
| 2015 | -0.77% | -6.75% |
| 2014 | -8.8% | -6.12% |
| 2013 | -5.16% | -1.93% |
| 2012 | -5.55% | -0.83% |
| 2011 | -5.65% | -2.19% |
| 2010 | -4.68% | -0.99% |
| 2009 | -5.43% | -3.93% |
| 2008 | 0.87% | 1.11% |
| 2007 | 3.23% | -0.75% |
| 2006 | -1.04% | 31% |
| 2005 | -2.22% | -1.53% |
| 2004 | -3.71% | -2.76% |
| 2003 | -5.91% | -2.17% |
| 2002 | -4.13% | -2.21% |
| 2001 | -2.11% | -2.59% |
| 2000 | -2.24% | -2.83% |
| 1999 | -4.05% | -4.27% |
| 1998 | -3.85% | -2.23% |
| 1997 | -4.82% | -2.39% |
| 1996 | -2.96% | -0.36% |
| 1995 | -0.71% | -3.19% |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1995–2025, retrieved 2026-07-08).
GeoRank.org/economy/cyprus/niger | CC BY
In 2025, Cyprus' government surplus, the difference between spending and revenue, was $1.23B, equivalent to 2.99% of GDP. This compares to Niger's deficit of $711M, or 3.28% of GDP.
Over the past 31 years, Cyprus recorded a fiscal deficit in 22 of those years, while Niger ran a deficit in 29 years. On average, Cyprus posted an annual deficit equal to 2.1% of GDP, compared to deficit of 2.05% of GDP for Niger.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Cyprus
|
Niger
|
|
| 2025 | 0.13% | -4.45% |
| 2024 | 1.8% | 9.07% |
| 2023 | 3.54% | 3.7% |
| 2022 | 8.4% | 4.23% |
| 2021 | 2.45% | 3.84% |
| 2020 | -0.64% | 2.9% |
| 2019 | 0.25% | -2.49% |
| 2018 | 1.44% | 2.97% |
| 2017 | 0.53% | 2.8% |
| 2016 | -1.43% | 1.65% |
| 2015 | -2.1% | -0.58% |
| 2014 | -1.35% | -0.93% |
| 2013 | -0.4% | 2.3% |
| 2012 | 2.39% | 0.46% |
| 2011 | 3.29% | 2.94% |
| 2010 | 2.43% | 0.8% |
| 2009 | 0.33% | 0.58% |
| 2008 | 4.67% | 11.3% |
| 2007 | 2.37% | 0.05% |
| 2006 | 2.3% | 0.04% |
| 2005 | 2.56% | 7.8% |
| 2004 | 2.29% | 0.26% |
| 2003 | 4.14% | -1.61% |
| 2002 | 2.8% | 2.63% |
| 2001 | 1.97% | 4.01% |
| 2000 | 4.14% | 2.9% |
| 1999 | 1.63% | -2.3% |
| 1998 | 2.23% | 4.55% |
| 1997 | 3.61% | 2.93% |
Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).
GeoRank.org/economy/cyprus/niger | CC BY
Over the past 29 years, Cyprus has recorded an average annual inflation rate of 1.92%, compared with 2.15% in Niger. In 2025, inflation was 0.13% in Cyprus and -4.45% in Niger.
Top exports between countries
Balance of trade
|
Cyprus
|
Niger
|
|
|---|---|---|
|
Current account balance
|
-$2.59B
2025 |
-$1.2B
2024 |
| Current account balance ranking |
149/190
2025 |
123/190
2024 |
| Current account balance, % of GDP |
-6.29%
2025 |
-6.09%
2024 |
| Goods imports |
$12.6B
2025 |
$2B
2024 |
| Goods exports |
$4.62B
2025 |
$1.52B
2024 |
| Service imports |
$25.3B
2025 |
$1.03B
2024 |
| Service exports |
$35.7B
2025 |
$248M
2024 |
| Imports of goods and services, % of GDP |
91.9%
2025 |
18.1%
2025 |
| Exports of goods and services, % of GDP |
97.6%
2025 |
15.8%
2025 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Cyprus
|
Niger
|
|
|---|---|---|
| Economic freedom | 74.1 | 51 |
| Economic freedom ranking | 21/197 | 156/197 |
| Property rights | 85.1 | 16.6 |
| Government integrity | 59.7 | 33.9 |
| Judicial effectiveness | 89.8 | 28 |
| Tax burden | 80.8 | 78.2 |
| Government spending | 52.1 | 91.4 |
| Fiscal health | 91.5 | 47.6 |
| Business freedom | 82.3 | 32.4 |
| Labor freedom | 60.3 | 54.7 |
| Monetary freedom | 78.7 | 67.9 |
| Trade freedom | 79.4 | 65.8 |
| Investment freedom | 70 | 55 |
| Financial freedom | 60 | 40 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Cyprus
|
Niger
|
|
| 2026 | 74.1 | 51 |
| 2025 | 73.2 | 51.5 |
| 2024 | 72.2 | 52.3 |
| 2023 | 72.3 | 53.7 |
| 2022 | 72.9 | 54.9 |
| 2021 | 71.4 | 57.3 |
| 2020 | 70.1 | 54.7 |
| 2019 | 68.1 | 51.6 |
| 2018 | 67.8 | 49.5 |
| 2017 | 67.9 | 50.8 |
| 2016 | 68.7 | 54.3 |
| 2015 | 67.9 | 54.6 |
| 2014 | 67.6 | 55.1 |
| 2013 | 69 | 53.9 |
| 2012 | 71.8 | 54.3 |
| 2011 | 73.3 | 54.3 |
| 2010 | 70.9 | 52.9 |
| 2009 | 70.8 | 53.8 |
| 2008 | 71.3 | 52.9 |
| 2007 | 71.7 | 53.2 |
| 2006 | 71.8 | 52.5 |
| 2005 | 71.9 | 54.1 |
| 2004 | 74.1 | 54.6 |
| 2003 | 73.3 | 54.2 |
| 2002 | 73 | 48.2 |
| 2001 | 71 | 48.9 |
| 2000 | 67.2 | 45.9 |
| 1999 | 67.8 | 48.6 |
| 1998 | 68.2 | 47.5 |
| 1997 | 67.9 | 46.6 |
| 1996 | 67.7 | 45.8 |
Data sources: The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-07-08).
GeoRank.org/economy/cyprus/niger | CC BY
The Economic Freedom Index for Cyprus is 74.1, ranking 21/197, compared to 51 for Niger, ranking 156/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Cyprus
|
Niger
|
|
|---|---|---|
| Services, % of GDP |
76.8%
2025 |
31.1%
2025 |
| Industry, % of GDP |
11.1%
2025 |
18.7%
2025 |
| Agriculture, forestry, and fishing, % of GDP |
1.12%
2025 |
47.6%
2025 |
|
GNI, Atlas method
|
$35.6B
2025 |
$20.9B
2025 |
| GNI per capita, PPP |
$57,390
2025 |
$2,150
2025 |
| Total reserves including gold |
$2.95B
2025 |
n/a |
| Total reserves ranking |
121/177
2025 |
n/a |
|
Net foreign direct investment
|
-$9.59B
2025 |
-$337M
2024 |
|
Net inflows of foreign direct investment
|
-$50.4B
2024 |
$358M
2024 |
|
Net outflows of foreign direct investment
|
-$55.9B
2024 |
$20.7M
2024 |
|
Servicing debt to the IMF, % of GNI
|
n/a |
1.96%
2024 |
| Poverty at national poverty lines |
13.9%
2021 |
41.2%
2021 |
|
Gross capital formation, % of GDP
|
19.3%
2025 |
22%
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/cyprus/niger | CC BY
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Data sources:
- World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Fiscal Monitor (1995–2025, retrieved 2026-07-08)
- The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-07-08)
- U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
- TradeMap (2021–2025, 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.