Djibouti has a GDP of $4.09B compared to $12.8B for Equatorial Guinea, ranking 165/197 and 148/197 by economy size, respectively.
Djibouti has $1.36B in government debt (31.2% of GDP), compared to $4.62B (35.1% of GDP) in Equatorial Guinea.
The chart below compares the two countries' GDP growth in both current (nominal) and constant dollars, accounting for inflation over time.
| Year | GDP | |||
|---|---|---|---|---|
Djibouti
|
Equatorial Guinea
|
|||
| Current $ | Constant $ | Current $ | Constant $ | |
| 1962 | - | - | $37,253,333 | - |
| 1963 | - | - | $44,266,667 | - |
| 1964 | - | - | $51,915,000 | - |
| 1965 | - | - | $64,748,333 | - |
| 1966 | - | - | $69,110,000 | - |
| 1967 | - | - | $72,317,447 | - |
| 1968 | - | - | $67,514,286 | - |
| 1969 | - | - | $67,225,714 | - |
| 1970 | - | - | $66,331,429 | - |
| 1971 | - | - | $64,946,955 | - |
| 1972 | - | - | $65,429,198 | - |
| 1973 | - | - | $81,203,227 | - |
| 1974 | - | - | $94,159,863 | - |
| 1975 | - | - | $104,295,643 | - |
| 1976 | - | - | $103,653,050 | - |
| 1977 | - | - | $103,987,520 | - |
| 1978 | - | - | - | - |
| 1979 | - | - | - | - |
| 1980 | - | - | $50,642,881 | $132,086,051 |
| 1981 | - | - | $36,731,423 | $139,706,651 |
| 1982 | - | - | $44,294,648 | $142,782,539 |
| 1983 | - | - | $44,442,457 | $149,927,930 |
| 1984 | - | - | $50,320,914 | $151,444,273 |
| 1985 | $340,989,528 | - | $62,118,570 | $170,988,428 |
| 1986 | - | - | $76,407,396 | $167,003,446 |
| 1987 | $373,371,738 | - | $93,345,860 | $174,412,950 |
| 1988 | $395,794,539 | - | $100,534,657 | $179,044,071 |
| 1989 | $409,220,087 | - | $88,265,975 | $176,843,301 |
| 1990 | $452,328,087 | - | $112,119,411 | $173,733,398 |
| 1991 | $462,421,999 | - | $110,906,029 | $171,957,428 |
| 1992 | $478,058,305 | - | $134,707,184 | $231,704,586 |
| 1993 | $466,048,469 | - | $136,047,906 | $257,269,047 |
| 1994 | $491,689,221 | - | $100,807,003 | $300,152,801 |
| 1995 | $497,723,961 | - | $141,853,361 | $352,638,312 |
| 1996 | $494,004,648 | - | $232,463,023 | $587,424,890 |
| 1997 | $502,675,542 | - | $442,337,871 | $1,468,403,405 |
| 1998 | $514,267,869 | - | $370,687,634 | $1,817,508,713 |
| 1999 | $536,080,148 | - | $621,117,886 | $2,283,954,429 |
| 2000 | $551,230,862 | - | $1,045,998,496 | $2,699,948,864 |
| 2001 | $572,417,441 | - | $1,461,139,022 | $4,411,173,090 |
| 2002 | $591,122,040 | - | $1,806,742,742 | $5,269,712,387 |
| 2003 | $622,044,666 | - | $2,484,745,935 | $6,005,113,942 |
| 2004 | $666,072,102 | - | $4,410,764,339 | $8,286,980,786 |
| 2005 | $708,633,195 | - | $8,217,369,093 | $9,674,942,387 |
| 2006 | $768,873,684 | - | $10,086,528,699 | $10,420,388,727 |
| 2007 | $847,918,929 | - | $13,071,718,759 | $12,012,844,403 |
| 2008 | $999,105,339 | - | $19,749,893,536 | $14,151,023,688 |
| 2009 | $1,049,110,685 | - | $15,027,795,173 | $14,341,122,354 |
| 2010 | $1,128,611,700 | - | $16,314,443,436 | $13,061,295,371 |
| 2011 | $1,239,144,502 | - | $21,357,343,669 | $13,913,404,306 |
| 2012 | $1,353,632,942 | - | $22,388,344,144 | $15,070,007,775 |
| 2013 | $2,044,440,443 | $2,107,658,965 | $21,948,834,284 | $14,447,134,440 |
| 2014 | $2,220,637,966 | $2,259,262,606 | $21,765,453,082 | $14,507,099,626 |
| 2015 | $2,424,391,785 | $2,424,391,785 | $13,185,496,881 | $13,185,496,881 |
| 2016 | $2,604,955,229 | $2,597,091,694 | $11,240,808,848 | $12,023,008,462 |
| 2017 | $2,762,581,334 | $2,738,843,335 | $12,200,913,879 | $11,341,603,435 |
| 2018 | $2,913,464,658 | $2,869,605,010 | $13,097,012,134 | $10,634,279,339 |
| 2019 | $3,088,851,450 | $3,028,726,927 | $11,364,133,550 | $10,051,326,715 |
| 2020 | $3,144,136,197 | $3,065,135,713 | $9,893,816,008 | $9,569,759,527 |
| 2021 | $3,392,796,953 | $3,200,221,046 | $12,215,878,033 | $9,652,085,293 |
| 2022 | $3,562,814,909 | $3,365,561,652 | $13,687,643,436 | $9,963,221,065 |
| 2023 | $3,917,150,481 | $3,613,673,263 | $12,337,550,584 | $9,456,161,987 |
| 2024 | $4,086,402,719 | $3,828,825,225 | $12,765,777,677 | $9,541,952,851 |
Economic indicators
|
Djibouti
|
Equatorial Guinea
|
|
|---|---|---|
| Gross domestic product |
$4.09B
2024 |
$12.8B
2024 |
| GDP rank |
165/197
2024 |
148/197
2024 |
| GDP growth |
4.32%
2023-2024 |
3.47%
2023-2024 |
| GDP per capita |
$3,496
2024 |
$6,745
2024 |
| GDP per capita rank |
134/197
2024 |
106/197
2024 |
| GDP per capita, PPP |
$7,776
2024 |
$17,567
2024 |
| Government debt |
$1.36B
2024 |
$4.62B
2024 |
| Debt-to-GDP ratio |
31.2%
2025 |
35.1%
2025 |
| Government debt per person |
$1,163
2024 |
$2,442
2024 |
| Government debt per person rank |
138/185
2024 |
112/185
2024 |
| Average annual personal income after taxes |
$2,788
2025 |
$4,393
2025 |
| Income share by richest 10% |
32.3%
2017 |
29.1%
2022 |
| Income share by poorest 10% |
1.9%
2017 |
2.6%
2022 |
| Government expenditure, % of GDP |
21.6%
2025 |
18.7%
2025 |
| Consumer prices inflation |
1.5%
2024-2025 |
2.9%
2024-2025 |
| Unemployment rate |
40%
2017 |
8.6%
2014 |
| Population |
1196428
|
1975406
|
GDP per capita in Djibouti vs Equatorial Guinea
Djibouti's GDP per capita is $3,496, ranking 134/197, compared to $6,745 in Equatorial Guinea, ranking 106/197. Adjusted for purchasing power (GDP per capita PPP), Djibouti ranks 143rd at $7,776, while Equatorial Guinea ranks 103rd at $17,567.
| Year | Current $ | |||
|---|---|---|---|---|
|
Djibouti
|
Equatorial Guinea
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 1962 | - | - | $132.9 | - |
| 1963 | - | - | $154.8 | - |
| 1964 | - | - | $177.8 | - |
| 1965 | - | - | $217.1 | - |
| 1966 | - | - | $226.7 | - |
| 1967 | - | - | $231.9 | - |
| 1968 | - | - | $211.7 | - |
| 1969 | - | - | $208.4 | - |
| 1970 | - | - | $206.8 | - |
| 1971 | - | - | $205.6 | - |
| 1972 | - | - | $211.4 | - |
| 1973 | - | - | $268.6 | - |
| 1974 | - | - | $319 | - |
| 1975 | - | - | $362 | - |
| 1976 | - | - | $369 | - |
| 1977 | - | - | $376 | - |
| 1978 | - | - | $376 | - |
| 1979 | - | - | $372 | - |
| 1980 | - | - | $175.5 | - |
| 1981 | - | - | $121.1 | - |
| 1982 | - | - | $137.5 | - |
| 1983 | - | - | $129.4 | - |
| 1984 | - | - | $137.9 | - |
| 1985 | $847 | - | $161.1 | - |
| 1986 | $800 | - | $188.8 | - |
| 1987 | $822 | - | $220.9 | - |
| 1988 | $817 | - | $228.7 | - |
| 1989 | $782 | - | $193.2 | - |
| 1990 | $780 | - | $236.4 | $577 |
| 1991 | $733 | - | $225.3 | $569 |
| 1992 | $764 | - | $263.7 | $756 |
| 1993 | $759 | - | $256.7 | $828 |
| 1994 | $785 | - | $183.2 | $951 |
| 1995 | $786 | - | $248.3 | $1,098 |
| 1996 | $762 | - | $392 | $1,793 |
| 1997 | $748 | - | $717 | $4,387 |
| 1998 | $735 | - | $578 | $5,280 |
| 1999 | $740 | - | $931 | $6,470 |
| 2000 | $738 | - | $1,487 | $7,420 |
| 2001 | $742 | - | $1,949 | $11,627 |
| 2002 | $743 | - | $2,264 | $13,255 |
| 2003 | $765 | - | $2,931 | $14,496 |
| 2004 | $806 | - | $4,901 | $19,354 |
| 2005 | $844 | - | $8,674 | $22,137 |
| 2006 | $898 | - | $10,185 | $23,511 |
| 2007 | $970 | - | $12,617 | $26,611 |
| 2008 | $1,119 | - | $18,211 | $30,523 |
| 2009 | $1,151 | - | $13,233 | $29,722 |
| 2010 | $1,213 | - | $13,720 | $26,168 |
| 2011 | $1,306 | - | $17,198 | $27,242 |
| 2012 | $1,400 | - | $17,309 | $30,012 |
| 2013 | $2,076 | $3,762 | $16,304 | $27,910 |
| 2014 | $2,215 | $3,978 | $15,549 | $27,177 |
| 2015 | $2,376 | $4,264 | $9,069 | $19,479 |
| 2016 | $2,510 | $4,432 | $7,453 | $16,649 |
| 2017 | $2,619 | $4,677 | $7,809 | $18,435 |
| 2018 | $2,718 | $5,083 | $8,102 | $18,413 |
| 2019 | $2,837 | $5,398 | $6,804 | $16,451 |
| 2020 | $2,845 | $5,527 | $5,764 | $13,677 |
| 2021 | $3,026 | $5,960 | $6,946 | $16,821 |
| 2022 | $3,133 | $6,621 | $7,589 | $18,140 |
| 2023 | $3,398 | $7,264 | $6,678 | $17,412 |
| 2024 | $3,496 | $7,776 | $6,745 | $17,567 |
Spending and national debt comparison
In 2024, Djibouti's government spending was $898M, accounting for 21.6% of its GDP, while Equatorial Guinea's spent $2.52B, or 18.7% of GDP.
Debt-to-GDP ratio is 31.2% in Djibouti and 35.1% in Equatorial Guinea, ranking 158/185 and 148/185, respectively.
| Year | % of GDP | |||
|---|---|---|---|---|
|
Djibouti
|
Equatorial Guinea
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 1985 | - | - | 115.4% | 183.8% |
| 1986 | - | - | 119% | 152.5% |
| 1987 | - | - | 183% | 141.3% |
| 1988 | - | - | 227.9% | 154.5% |
| 1989 | - | - | 116.8% | 187% |
| 1990 | 30.2% | - | 212.9% | 157% |
| 1991 | 27.7% | - | 284.5% | 169.5% |
| 1992 | 34.9% | - | 595% | 136.9% |
| 1993 | 35.3% | - | 256.3% | 152.6% |
| 1994 | 30.9% | - | 510% | 216% |
| 1995 | 27% | 50.9% | 141.5% | 136.9% |
| 1996 | 23.7% | 53.1% | 22.9% | 91.2% |
| 1997 | 25% | 56% | 14.8% | 46.3% |
| 1998 | 24% | 55.2% | 35.1% | 59.2% |
| 1999 | 23.5% | 58.5% | 18.7% | 60.5% |
| 2000 | 23.2% | 58.1% | 22.6% | 36.6% |
| 2001 | 21% | 58.1% | 13.5% | 25.5% |
| 2002 | 23.4% | 63.7% | 11.3% | 19.4% |
| 2003 | 25.8% | 66.3% | 13.9% | 6.77% |
| 2004 | 26.7% | 65.3% | 10.8% | 4.54% |
| 2005 | 26.2% | 60.3% | 14.1% | 2.85% |
| 2006 | 23.8% | 58.3% | 18.1% | 1.22% |
| 2007 | 26.6% | 56.6% | 19.7% | 0.75% |
| 2008 | 28.8% | 59.3% | 19.9% | 0.49% |
| 2009 | 31% | 29.5% | 39.8% | 4.34% |
| 2010 | 26.6% | 27.9% | 31.2% | 7.89% |
| 2011 | 25.3% | 25.7% | 27.5% | 7.17% |
| 2012 | 26.5% | 25% | 35.2% | 7.1% |
| 2013 | 26.8% | 24.6% | 29.3% | 6.27% |
| 2014 | 29% | 26.9% | 31.6% | 12.6% |
| 2015 | 42% | 40.3% | 41.6% | 31.7% |
| 2016 | 25.9% | 45.9% | 27.8% | 41.1% |
| 2017 | 23.9% | 48% | 20.1% | 36.2% |
| 2018 | 25.9% | 47.5% | 19.1% | 40.6% |
| 2019 | 24.9% | 41.1% | 16.8% | 43.2% |
| 2020 | 25.8% | 42.1% | 16.2% | 49.4% |
| 2021 | 23.1% | 40.3% | 12.7% | 42.3% |
| 2022 | 21% | 38.3% | 14.8% | 29.8% |
| 2023 | 21.5% | 35.4% | 19.2% | 36.3% |
| 2024 | 22% | 33.3% | 19.7% | 36.2% |
| 2025 | 21.6% | 31.2% | 18.7% | 35.1% |
Government deficit by year
In 2024, Djibouti's government deficit, the difference between spending and revenue, was -$184M, equivalent to -4.51% of GDP. This compares to Equatorial Guinea's deficit of -$158M, or -1.23% of GDP.
Over the past 35 years, Djibouti recorded a fiscal deficit in 33 of those years, while Equatorial Guinea ran a deficit in 20 years. On average, Djibouti posted an annual deficit equal to -3.23% of GDP, compared to deficit of -48.9% of GDP for Equatorial Guinea.
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Djibouti
|
Equatorial Guinea
|
|
| 1985 | - | -89.3% |
| 1986 | - | -97.3% |
| 1987 | - | -158% |
| 1988 | - | -208.5% |
| 1989 | - | -76.2% |
| 1990 | -3.25% | -160.2% |
| 1991 | -0.86% | -236% |
| 1992 | -6.13% | -557% |
| 1993 | -7.1% | -217.9% |
| 1994 | -4.97% | -487% |
| 1995 | -5.13% | -123.4% |
| 1996 | -1.77% | -6.36% |
| 1997 | -2.86% | 3.21% |
| 1998 | -3.59% | -7.65% |
| 1999 | -5.2% | -0.19% |
| 2000 | -3.97% | -2.67% |
| 2001 | -3.61% | 14.9% |
| 2002 | -4.56% | 17.6% |
| 2003 | -4.13% | 7.85% |
| 2004 | -3.67% | 13.9% |
| 2005 | -1.18% | 18.5% |
| 2006 | 0.26% | 21.8% |
| 2007 | -1.88% | 17.2% |
| 2008 | 0.62% | 14.6% |
| 2009 | -3.88% | -6.47% |
| 2010 | -1.04% | -4.53% |
| 2011 | -1.18% | 0.83% |
| 2012 | -2.04% | -7.24% |
| 2013 | -0.34% | -4.4% |
| 2014 | -6.92% | -7.54% |
| 2015 | -15.5% | -15.1% |
| 2016 | -0.76% | -10.9% |
| 2017 | -0.21% | -2.59% |
| 2018 | -1.98% | 0.52% |
| 2019 | -0.98% | 1.82% |
| 2020 | -2.58% | -1.77% |
| 2021 | -3.05% | 2.65% |
| 2022 | -1.48% | 11.7% |
| 2023 | -3.46% | 2.39% |
| 2024 | -4.51% | -1.23% |
| 2025 | -3.05% | -0.78% |
Inflation comparison by year
Over the past 30 years, Djibouti has recorded an average annual inflation rate of 2.56%, compared with 3.91% in Equatorial Guinea. In 2025, inflation was 1.5% in Djibouti and 2.9% in Equatorial Guinea.
| Year | Inflation | ||
|---|---|---|---|
|
Djibouti
|
Equatorial Guinea
|
Djibouti
|
Equatorial Guinea
|
| 1996 | 3.5% | 4.5% | |
| 1997 | 2.5% | 3% | |
| 1998 | 2.2% | 7.9% | |
| 1999 | -0.4% | 0.4% | |
| 2000 | 1.2% | 4.8% | |
| 2001 | 1.9% | 8.7% | |
| 2002 | 1.4% | 7.6% | |
| 2003 | 1.6% | 7.3% | |
| 2004 | 2.4% | 4.2% | |
| 2005 | 3.3% | 5.6% | |
| 2006 | 3.5% | 4.5% | |
| 2007 | 5.9% | 2.8% | |
| 2008 | 8.7% | 4.7% | |
| 2009 | 5.6% | 5.7% | |
| 2010 | 2.5% | 5.3% | |
| 2011 | 5.2% | 4.8% | |
| 2012 | 4.2% | 3.4% | |
| 2013 | 1.1% | 3.2% | |
| 2014 | 1.3% | 4.3% | |
| 2015 | -0.5% | 1.7% | |
| 2016 | 2.4% | 1.4% | |
| 2017 | 0.6% | 0.7% | |
| 2018 | 0.1% | 1.3% | |
| 2019 | 3.3% | 1.2% | |
| 2020 | 1.8% | 4.8% | |
| 2021 | 1.2% | -0.1% | |
| 2022 | 5.2% | 4.9% | |
| 2023 | 1.4% | 2.4% | |
| 2024 | 2.1% | 3.4% | |
| 2025 | 1.5% | 2.9% | |
Balance of trade
|
Djibouti
|
Equatorial Guinea
|
|
|---|---|---|
Current account balance
|
$610M
2024 |
-$344M
1996 |
| Current account balance ranking |
57/189
2024 |
99/189
1996 |
| Current account balance, % of GDP |
+14.9%
2024 |
-148%
1996 |
| Goods imports |
$4.04B
2024 |
$292M
1996 |
| Goods exports |
$4.08B
2024 |
$175M
1996 |
| Service imports |
$730M
2024 |
$185M
1996 |
| Service exports |
$1.17B
2024 |
$4.88M
1996 |
| Imports of goods and services, % of GDP |
148.3%
2024 |
25.4%
2024 |
| Exports of goods and services, % of GDP |
160.8%
2024 |
35.2%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Djibouti
|
Equatorial Guinea
|
|
|---|---|---|
| Economic freedom | 55.7 | 47.7 |
| Economic freedom ranking | 126/197 | 175/197 |
| Property rights | 30.6 | 18.7 |
| Government integrity | 27.7 | 7.2 |
| Judicial effectiveness | 27.7 | 7.1 |
| Tax burden | 83.5 | 74.9 |
| Government spending | 86.2 | 92.5 |
| Fiscal health | 86.6 | 97.2 |
| Business freedom | 53.7 | 36.5 |
| Labor freedom | 52.8 | 44.9 |
| Monetary freedom | 70.3 | 74.3 |
| Trade freedom | 49.8 | 48.8 |
| Investment freedom | 50 | 40 |
| Financial freedom | 50 | 30 |
Economic freedom by year comparison
The Economic Freedom Index for Djibouti is 55.7, ranking 126/197, compared to 47.7 for Equatorial Guinea, ranking 175/197. The chart below displays a comparison of annual changes in economic freedom indexes.
| Year | Economic freedom index | |
|---|---|---|
|
Djibouti
|
Equatorial Guinea
|
|
| 1997 | 54.5 | - |
| 1998 | 55.9 | - |
| 1999 | 57.1 | 45.1 |
| 2000 | 55.1 | 45.6 |
| 2001 | 58.3 | 47.9 |
| 2002 | 57.8 | 46.4 |
| 2003 | 55.7 | 53.1 |
| 2004 | 55.6 | 53.3 |
| 2005 | 55.2 | 53.3 |
| 2006 | 53.2 | 51.5 |
| 2007 | 52.4 | 53.2 |
| 2008 | 51.2 | 51.6 |
| 2009 | 51.3 | 51.3 |
| 2010 | 51 | 48.6 |
| 2011 | 54.5 | 47.5 |
| 2012 | 53.9 | 42.8 |
| 2013 | 53.9 | 42.3 |
| 2014 | 55.9 | 44.4 |
| 2015 | 57.5 | 40.4 |
| 2016 | 56 | 43.7 |
| 2017 | 46.7 | 45 |
| 2018 | 45.1 | 42 |
| 2019 | 47.1 | 41 |
| 2020 | 52.9 | 48.3 |
| 2021 | 56.2 | 49.2 |
| 2022 | 55.3 | 47.2 |
| 2023 | 56.1 | 48.3 |
| 2024 | 55.8 | 47.7 |
| 2025 | 55.7 | 47.7 |
More economic indicators
|
Djibouti
|
Equatorial Guinea
|
|
|---|---|---|
| Services, % of GDP |
75.5%
2024 |
51.1%
2024 |
| Industry, % of GDP |
15.4%
2024 |
45.8%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
2.58%
2024 |
3.15%
2024 |
|
GNI, Atlas method
|
$4.14B
2024 |
$8.96B
2024 |
| GNI per capita, PPP |
$7,850
2024 |
$12,330
2024 |
| Total reserves including gold |
$349M
2024 |
$1.54B
2023 |
| Total reserves ranking |
165/177
2024 |
134/177
2023 |
|
Net foreign direct investment
|
-$67.8M
2024 |
-$376M
1996 |
|
Net inflows of foreign direct investment
|
$67.8M
2024 |
$188M
2024 |
|
Net outflows of foreign direct investment
|
n/a |
$154M
2024 |
|
Servicing debt to the IMF, % of GNI
|
2.52%
2023 |
n/a |
| Poverty at national poverty lines |
23%
2020 |
50.7%
2022 |
|
Gross capital formation, % of GDP
|
-3.78%
2024 |
8.96%
2024 |
GDP per capita map
GDP per capita
Compare countries by 7 more topics
Relevant pages:
By topic
vs
comparisons:
Economy comparisons
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.