Djibouti has a GDP of $4.09B compared to $14.3B for Rwanda, ranking 165/197 and 144/197 by economy size, respectively.
Djibouti has $1.36B in government debt (31.2% of GDP), compared to $9.58B (77.6% of GDP) in Rwanda.
The chart below compares the two countries' GDP growth in both current (nominal) and constant dollars, accounting for inflation over time.
| Year | GDP | |||
|---|---|---|---|---|
Djibouti
|
Rwanda
|
|||
| Current $ | Constant $ | Current $ | Constant $ | |
| 1960 | - | - | $119,000,024 | $1,013,800,020 |
| 1961 | - | - | $122,000,016 | $970,231,700 |
| 1962 | - | - | $125,000,008 | $1,080,195,804 |
| 1963 | - | - | $128,000,000 | $974,115,776 |
| 1964 | - | - | $129,999,994 | $852,692,316 |
| 1965 | - | - | $148,799,980 | $912,462,033 |
| 1966 | - | - | $124,525,703 | $976,415,683 |
| 1967 | - | - | $159,560,018 | $1,043,944,763 |
| 1968 | - | - | $172,200,018 | $1,117,164,761 |
| 1969 | - | - | $188,700,037 | $1,240,135,222 |
| 1970 | - | - | $219,900,006 | $1,314,561,010 |
| 1971 | - | - | $222,952,504 | $1,330,423,038 |
| 1972 | - | - | $246,457,838 | $1,333,922,959 |
| 1973 | - | - | $290,746,157 | $1,379,784,406 |
| 1974 | - | - | $308,458,423 | $1,399,236,932 |
| 1975 | - | - | $571,863,500 | $1,369,659,506 |
| 1976 | - | - | $637,753,853 | $1,636,805,801 |
| 1977 | - | - | $746,650,613 | $1,669,445,501 |
| 1978 | - | - | $905,709,076 | $1,822,213,801 |
| 1979 | - | - | $1,109,346,131 | $2,038,508,904 |
| 1980 | - | - | $1,254,765,642 | $2,220,988,318 |
| 1981 | - | - | $1,407,062,527 | $2,341,725,674 |
| 1982 | - | - | $1,407,243,139 | $2,384,130,730 |
| 1983 | - | - | $1,479,687,587 | $2,526,710,090 |
| 1984 | - | - | $1,587,413,084 | $2,419,558,044 |
| 1985 | $340,989,528 | - | $1,715,626,331 | $2,526,085,095 |
| 1986 | - | - | $1,944,710,684 | $2,664,315,945 |
| 1987 | $373,371,738 | - | $2,157,432,668 | $2,663,675,547 |
| 1988 | $395,794,539 | - | $2,395,492,687 | $2,783,509,648 |
| 1989 | $409,220,087 | - | $2,405,022,593 | $2,782,492,713 |
| 1990 | $452,328,087 | - | $2,550,185,679 | $2,715,732,613 |
| 1991 | $462,421,999 | - | $1,911,600,237 | $2,647,448,785 |
| 1992 | $478,058,305 | - | $2,029,026,962 | $2,802,926,178 |
| 1993 | $466,048,469 | - | $1,971,525,712 | $2,575,645,531 |
| 1994 | $491,689,221 | - | $753,636,370 | $1,281,433,436 |
| 1995 | $497,723,961 | - | $1,293,535,193 | $1,732,806,553 |
| 1996 | $494,004,648 | - | $1,382,334,879 | $1,953,664,804 |
| 1997 | $502,675,542 | - | $1,851,558,197 | $2,224,242,544 |
| 1998 | $514,267,869 | - | $1,989,343,546 | $2,421,280,840 |
| 1999 | $536,080,148 | - | $2,157,108,263 | $2,526,652,278 |
| 2000 | $551,230,862 | - | $2,068,836,754 | $2,738,155,711 |
| 2001 | $572,417,441 | - | $1,966,600,715 | $2,970,476,184 |
| 2002 | $591,122,040 | - | $1,966,003,468 | $3,362,343,590 |
| 2003 | $622,044,666 | - | $2,138,237,279 | $3,436,395,425 |
| 2004 | $666,072,102 | - | $2,376,496,067 | $3,692,326,726 |
| 2005 | $708,633,195 | - | $2,933,819,766 | $4,038,589,403 |
| 2006 | $768,873,684 | - | $3,319,784,539 | $4,411,233,107 |
| 2007 | $847,918,929 | - | $4,070,507,895 | $4,747,955,684 |
| 2008 | $999,105,339 | - | $5,179,854,065 | $5,277,886,761 |
| 2009 | $1,049,110,685 | - | $5,674,476,969 | $5,607,662,717 |
| 2010 | $1,128,611,700 | - | $6,124,756,654 | $6,018,965,512 |
| 2011 | $1,239,144,502 | - | $6,884,913,658 | $6,497,978,183 |
| 2012 | $1,353,632,942 | - | $7,654,761,045 | $7,059,501,498 |
| 2013 | $2,044,440,443 | $2,107,658,965 | $7,819,964,024 | $7,392,699,278 |
| 2014 | $2,220,637,966 | $2,259,262,606 | $8,238,966,120 | $7,848,619,326 |
| 2015 | $2,424,391,785 | $2,424,391,785 | $8,543,760,206 | $8,543,760,206 |
| 2016 | $2,604,955,229 | $2,597,091,694 | $8,695,272,061 | $9,053,886,363 |
| 2017 | $2,762,581,334 | $2,738,843,335 | $9,252,833,894 | $9,408,633,107 |
| 2018 | $2,913,464,658 | $2,869,605,010 | $9,637,904,519 | $10,209,916,262 |
| 2019 | $3,088,851,450 | $3,028,726,927 | $10,349,300,277 | $11,174,486,378 |
| 2020 | $3,144,136,197 | $3,065,135,713 | $10,174,386,855 | $10,797,494,132 |
| 2021 | $3,392,796,953 | $3,200,221,046 | $11,078,787,095 | $11,969,932,692 |
| 2022 | $3,562,814,909 | $3,365,561,652 | $13,316,161,006 | $12,946,823,702 |
| 2023 | $3,917,150,481 | $3,613,673,263 | $14,331,722,700 | $14,014,924,102 |
| 2024 | $4,086,402,719 | $3,828,825,225 | $14,251,642,231 | $15,260,942,693 |
Economic indicators
|
Djibouti
|
Rwanda
|
|
|---|---|---|
| Gross domestic product |
$4.09B
2024 |
$14.3B
2024 |
| GDP rank |
165/197
2024 |
144/197
2024 |
| GDP growth |
4.32%
2023-2024 |
-0.56%
2023-2024 |
| GDP per capita |
$3,496
2024 |
$1,000
2024 |
| GDP per capita rank |
134/197
2024 |
177/197
2024 |
| GDP per capita, PPP |
$7,776
2024 |
$3,711
2024 |
| Government debt |
$1.36B
2024 |
$9.58B
2024 |
| Debt-to-GDP ratio |
31.2%
2025 |
77.6%
2025 |
| Government debt per person |
$1,163
2024 |
$672
2024 |
| Government debt per person rank |
138/185
2024 |
156/185
2024 |
| Average annual personal income after taxes |
$2,788
2025 |
$2,587
2025 |
| Market capitalization of domestic companies | n/a |
$2.75B
2024 |
| Income share by richest 10% |
32.3%
2017 |
33.4%
2023 |
| Income share by poorest 10% |
1.9%
2017 |
3.1%
2023 |
| Government expenditure, % of GDP |
21.6%
2025 |
27.4%
2025 |
| Consumer prices inflation |
1.5%
2024-2025 |
1.77%
2023-2024 |
| Central bank interest rate | n/a |
6.75%
2025 |
| Unemployment rate |
40%
2017 |
11.3%
2024 |
| Population |
1196428
|
14826674
|
GDP per capita in Djibouti vs Rwanda
Djibouti's GDP per capita is $3,496, ranking 134/197, compared to $1,000 in Rwanda, ranking 177/197. Adjusted for purchasing power (GDP per capita PPP), Djibouti ranks 143rd at $7,776, while Rwanda ranks 168th at $3,711.
| Year | Current $ | |||
|---|---|---|---|---|
|
Djibouti
|
Rwanda
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 1960 | - | - | $39.4 | - |
| 1961 | - | - | $39.3 | - |
| 1962 | - | - | $39.2 | - |
| 1963 | - | - | $39.3 | - |
| 1964 | - | - | $39 | - |
| 1965 | - | - | $43.5 | - |
| 1966 | - | - | $35.4 | - |
| 1967 | - | - | $44 | - |
| 1968 | - | - | $46 | - |
| 1969 | - | - | $48.9 | - |
| 1970 | - | - | $55.2 | - |
| 1971 | - | - | $54.4 | - |
| 1972 | - | - | $58.4 | - |
| 1973 | - | - | $66.9 | - |
| 1974 | - | - | $68.9 | - |
| 1975 | - | - | $124.1 | - |
| 1976 | - | - | $134.4 | - |
| 1977 | - | - | $152.7 | - |
| 1978 | - | - | $179.9 | - |
| 1979 | - | - | $213.8 | - |
| 1980 | - | - | $234.4 | - |
| 1981 | - | - | $254.6 | - |
| 1982 | - | - | $246.4 | - |
| 1983 | - | - | $250.6 | - |
| 1984 | - | - | $259.9 | - |
| 1985 | $847 | - | $271.6 | - |
| 1986 | $800 | - | $297.7 | - |
| 1987 | $822 | - | $320 | - |
| 1988 | $817 | - | $344 | - |
| 1989 | $782 | - | $335 | - |
| 1990 | $780 | - | $346 | $549 |
| 1991 | $733 | - | $254 | $542 |
| 1992 | $764 | - | $264.1 | $575 |
| 1993 | $759 | - | $247 | $521 |
| 1994 | $785 | - | $111 | $311 |
| 1995 | $786 | - | $228 | $514 |
| 1996 | $762 | - | $206 | $499 |
| 1997 | $748 | - | $238.7 | $500 |
| 1998 | $735 | - | $246.2 | $528 |
| 1999 | $740 | - | $264.7 | $554 |
| 2000 | $738 | - | $251.9 | $609 |
| 2001 | $742 | - | $237.3 | $670 |
| 2002 | $743 | - | $234 | $760 |
| 2003 | $765 | - | $249 | $775 |
| 2004 | $806 | - | $269.5 | $832 |
| 2005 | $844 | - | $324 | $914 |
| 2006 | $898 | - | $357 | $1,002 |
| 2007 | $970 | - | $426 | $1,079 |
| 2008 | $1,119 | - | $528 | $1,191 |
| 2009 | $1,151 | - | $564 | $1,241 |
| 2010 | $1,213 | - | $594 | $1,314 |
| 2011 | $1,306 | - | $651 | $1,413 |
| 2012 | $1,400 | - | $707 | $1,455 |
| 2013 | $2,076 | $3,762 | $705 | $1,512 |
| 2014 | $2,215 | $3,978 | $725 | $1,678 |
| 2015 | $2,376 | $4,264 | $734 | $1,781 |
| 2016 | $2,510 | $4,432 | $730 | $1,866 |
| 2017 | $2,619 | $4,677 | $758 | $1,968 |
| 2018 | $2,718 | $5,083 | $772 | $2,125 |
| 2019 | $2,837 | $5,398 | $810 | $2,336 |
| 2020 | $2,845 | $5,527 | $779 | $2,285 |
| 2021 | $3,026 | $5,960 | $830 | $2,733 |
| 2022 | $3,133 | $6,621 | $975 | $3,099 |
| 2023 | $3,398 | $7,264 | $1,027 | $3,399 |
| 2024 | $3,496 | $7,776 | $1,000 | $3,711 |
Spending and national debt comparison
In 2024, Djibouti's government spending was $898M, accounting for 21.6% of its GDP, while Rwanda's spent $4.1B, or 27.4% of GDP.
Debt-to-GDP ratio is 31.2% in Djibouti and 77.6% in Rwanda, ranking 158/185 and 46/185, respectively.
| Year | % of GDP | |||
|---|---|---|---|---|
|
Djibouti
|
Rwanda
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 1990 | 30.2% | - | - | - |
| 1991 | 27.7% | - | - | - |
| 1992 | 34.9% | - | 21.5% | - |
| 1993 | 35.3% | - | 20.3% | - |
| 1994 | 30.9% | - | 13.3% | - |
| 1995 | 27% | 50.9% | 18% | 100.8% |
| 1996 | 23.7% | 53.1% | 19.5% | 83.4% |
| 1997 | 25% | 56% | 17% | 72.2% |
| 1998 | 24% | 55.2% | 16.4% | 70.1% |
| 1999 | 23.5% | 58.5% | 22.4% | 78.4% |
| 2000 | 23.2% | 58.1% | 18.2% | 86% |
| 2001 | 21% | 58.1% | 19.1% | 84% |
| 2002 | 23.4% | 63.7% | 20.5% | 92% |
| 2003 | 25.8% | 66.3% | 18.5% | 79.5% |
| 2004 | 26.7% | 65.3% | 17.9% | 80.9% |
| 2005 | 26.2% | 60.3% | 19.9% | 58.9% |
| 2006 | 23.8% | 58.3% | 20.6% | 22.5% |
| 2007 | 26.6% | 56.6% | 22.4% | 22.1% |
| 2008 | 28.8% | 59.3% | 22.5% | 18.3% |
| 2009 | 31% | 29.5% | 22.3% | 18.5% |
| 2010 | 26.6% | 27.9% | 23.8% | 18.8% |
| 2011 | 25.3% | 25.7% | 24.7% | 18.7% |
| 2012 | 26.5% | 25% | 24.6% | 19.1% |
| 2013 | 26.8% | 24.6% | 26.2% | 26.7% |
| 2014 | 29% | 26.9% | 27.5% | 29.1% |
| 2015 | 42% | 40.3% | 26.6% | 33.1% |
| 2016 | 25.9% | 45.9% | 25.1% | 41.1% |
| 2017 | 23.9% | 48% | 25.1% | 45.6% |
| 2018 | 25.9% | 47.5% | 26.4% | 49.2% |
| 2019 | 24.9% | 41.1% | 28.2% | 53.6% |
| 2020 | 25.8% | 42.1% | 33.5% | 68.7% |
| 2021 | 23.1% | 40.3% | 31.6% | 67.3% |
| 2022 | 21% | 38.3% | 29.7% | 60.9% |
| 2023 | 21.5% | 35.4% | 27% | 63.4% |
| 2024 | 22% | 33.3% | 28.8% | 67.2% |
| 2025 | 21.6% | 31.2% | 27.4% | 77.6% |
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 Rwanda's deficit of -$936M, or -6.57% of GDP.
Over the past 33 years, Djibouti recorded a fiscal deficit in 31 of those years, while Rwanda ran a deficit in 29 years. On average, Djibouti posted an annual deficit equal to -3.3% of GDP, compared to deficit of -3.03% of GDP for Rwanda.
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Djibouti
|
Rwanda
|
|
| 1990 | -3.25% | - |
| 1991 | -0.86% | - |
| 1992 | -6.13% | -7.21% |
| 1993 | -7.1% | -6.6% |
| 1994 | -4.97% | -9.54% |
| 1995 | -5.13% | -2.04% |
| 1996 | -1.77% | -5.01% |
| 1997 | -2.86% | -2.22% |
| 1998 | -3.59% | -2.59% |
| 1999 | -5.2% | -4.41% |
| 2000 | -3.97% | -0.22% |
| 2001 | -3.61% | -1.8% |
| 2002 | -4.56% | -2.03% |
| 2003 | -4.13% | -1.23% |
| 2004 | -3.67% | 2.27% |
| 2005 | -1.18% | 1.12% |
| 2006 | 0.26% | -0.03% |
| 2007 | -1.88% | -1.56% |
| 2008 | 0.62% | 0.83% |
| 2009 | -3.88% | 0.26% |
| 2010 | -1.04% | -0.64% |
| 2011 | -1.18% | -0.86% |
| 2012 | -2.04% | -2.38% |
| 2013 | -0.34% | -1.27% |
| 2014 | -6.92% | -3.92% |
| 2015 | -15.5% | -2.68% |
| 2016 | -0.76% | -2.27% |
| 2017 | -0.21% | -2.52% |
| 2018 | -1.98% | -2.57% |
| 2019 | -0.98% | -5.08% |
| 2020 | -2.58% | -9.54% |
| 2021 | -3.05% | -7% |
| 2022 | -1.48% | -5.74% |
| 2023 | -3.46% | -5.04% |
| 2024 | -4.51% | -6.57% |
| 2025 | -3.05% | -6.29% |
Inflation comparison by year
Over the past 29 years, Djibouti has recorded an average annual inflation rate of 2.59%, compared with 6.85% in Rwanda. In 2024, inflation was 1.5% in Djibouti and 1.77% in Rwanda.
| Year | Inflation | ||
|---|---|---|---|
|
Djibouti
|
Rwanda
|
Djibouti
|
Rwanda
|
| 1996 | 3.5% | 7.41% | |
| 1997 | 2.5% | 12% | |
| 1998 | 2.2% | 6.21% | |
| 1999 | -0.4% | -2.41% | |
| 2000 | 1.2% | 3.9% | |
| 2001 | 1.9% | 3.34% | |
| 2002 | 1.4% | 1.99% | |
| 2003 | 1.6% | 7.45% | |
| 2004 | 2.4% | 12.3% | |
| 2005 | 3.3% | 9.01% | |
| 2006 | 3.5% | 8.88% | |
| 2007 | 5.9% | 9.08% | |
| 2008 | 8.7% | 15.4% | |
| 2009 | 5.6% | 12.9% | |
| 2010 | 2.5% | -0.25% | |
| 2011 | 5.2% | 3.08% | |
| 2012 | 4.2% | 10.3% | |
| 2013 | 1.1% | 5.92% | |
| 2014 | 1.3% | 2.35% | |
| 2015 | -0.5% | 2.53% | |
| 2016 | 2.4% | 7.17% | |
| 2017 | 0.6% | 8.28% | |
| 2018 | 0.1% | -0.31% | |
| 2019 | 3.3% | 3.35% | |
| 2020 | 1.8% | 9.85% | |
| 2021 | 1.2% | -0.39% | |
| 2022 | 5.2% | 17.7% | |
| 2023 | 1.4% | 19.8% | |
| 2024 | 2.1% | 1.77% | |
| 2025 | 1.5% | - | |
Top exports between countries
Balance of trade
|
Djibouti
|
Rwanda
|
|
|---|---|---|
Current account balance
|
$610M
2024 |
-$1.65B
2023 |
| Current account balance ranking |
57/189
2024 |
136/189
2023 |
| Current account balance, % of GDP |
+14.9%
2024 |
-11.5%
2023 |
| Goods imports |
$4.04B
2024 |
$4.83B
2023 |
| Goods exports |
$4.08B
2024 |
$2.47B
2023 |
| Service imports |
$730M
2024 |
$948M
2023 |
| Service exports |
$1.17B
2024 |
$1.04B
2023 |
| Imports of goods and services, % of GDP |
148.3%
2024 |
39.1%
2024 |
| Exports of goods and services, % of GDP |
160.8%
2024 |
30.8%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Djibouti
|
Rwanda
|
|
|---|---|---|
| Economic freedom | 55.7 | 54.8 |
| Economic freedom ranking | 126/197 | 133/197 |
| Property rights | 30.6 | 62 |
| Government integrity | 27.7 | 50.5 |
| Judicial effectiveness | 27.7 | 27.1 |
| Tax burden | 83.5 | 81.3 |
| Government spending | 86.2 | 73.8 |
| Fiscal health | 86.6 | 35 |
| Business freedom | 53.7 | 56.8 |
| Labor freedom | 52.8 | 48.7 |
| Monetary freedom | 70.3 | 67.3 |
| Trade freedom | 49.8 | 55.2 |
| Investment freedom | 50 | 60 |
| Financial freedom | 50 | 40 |
Economic freedom by year comparison
The Economic Freedom Index for Djibouti is 55.7, ranking 126/197, compared to 54.8 for Rwanda, ranking 133/197. The chart below displays a comparison of annual changes in economic freedom indexes.
| Year | Economic freedom index | |
|---|---|---|
|
Djibouti
|
Rwanda
|
|
| 1997 | 54.5 | 38.3 |
| 1998 | 55.9 | 39.1 |
| 1999 | 57.1 | 39.8 |
| 2000 | 55.1 | 42.3 |
| 2001 | 58.3 | 45.4 |
| 2002 | 57.8 | 50.4 |
| 2003 | 55.7 | 47.8 |
| 2004 | 55.6 | 53.3 |
| 2005 | 55.2 | 51.7 |
| 2006 | 53.2 | 52.8 |
| 2007 | 52.4 | 52.4 |
| 2008 | 51.2 | 54.2 |
| 2009 | 51.3 | 54.2 |
| 2010 | 51 | 59.1 |
| 2011 | 54.5 | 62.7 |
| 2012 | 53.9 | 64.9 |
| 2013 | 53.9 | 64.1 |
| 2014 | 55.9 | 64.7 |
| 2015 | 57.5 | 64.8 |
| 2016 | 56 | 63.1 |
| 2017 | 46.7 | 67.6 |
| 2018 | 45.1 | 69.1 |
| 2019 | 47.1 | 71.1 |
| 2020 | 52.9 | 70.9 |
| 2021 | 56.2 | 68.3 |
| 2022 | 55.3 | 57.1 |
| 2023 | 56.1 | 52.2 |
| 2024 | 55.8 | 51.6 |
| 2025 | 55.7 | 54.8 |
More economic indicators
|
Djibouti
|
Rwanda
|
|
|---|---|---|
| Services, % of GDP |
75.5%
2024 |
47.6%
2024 |
| Industry, % of GDP |
15.4%
2024 |
21%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
2.58%
2024 |
24.6%
2024 |
|
GNI, Atlas method
|
$4.14B
2024 |
$14.8B
2024 |
| GNI per capita, PPP |
$7,850
2024 |
$3,620
2024 |
| Total reserves including gold |
$349M
2024 |
$2.41B
2024 |
| Total reserves ranking |
165/177
2024 |
123/177
2024 |
|
Net foreign direct investment
|
-$67.8M
2024 |
-$459M
2023 |
|
Net inflows of foreign direct investment
|
$67.8M
2024 |
$819M
2024 |
|
Net outflows of foreign direct investment
|
n/a |
$9.86M
2024 |
|
Servicing debt to the IMF, % of GNI
|
2.52%
2023 |
3.88%
2023 |
| Poverty at national poverty lines |
23%
2020 |
27.4%
2023 |
|
Gross capital formation, % of GDP
|
-3.78%
2024 |
25.9%
2024 |
GDP per capita map
GDP per capita
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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.