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Economy of Dominican Republic vs Haiti compared: GDP & Debt

Updated on by Georank

The Dominican Republic has a GDP of $127B compared to $32.1B for Haiti, ranking 65/197 and 112/197 by economy size, respectively.

The Dominican Republic has $75.2B in government debt (59% of GDP), compared to $3.95B (12.3% of GDP) in Haiti.

Dominican Republic vs Haiti GDP by year

Dominican Republic
Haiti
1x
Year GDP, current $
Dominican Republic Haiti
2025 $127,407,463,759 $32,077,278,409
2024 $124,282,245,639 $24,255,657,481
2023 $120,456,239,154 $19,572,288,894
2022 $113,478,103,598 $20,113,007,126
2021 $94,850,719,517 $20,754,978,152
2020 $78,546,672,407 $14,508,222,518
2019 $89,146,130,745 $15,016,090,930
2018 $84,994,732,049 $16,403,864,618
2017 $79,070,274,743 $15,093,357,161
2016 $75,552,902,636 $14,069,277,526
2015 $70,966,782,572 $14,849,629,309
2014 $67,014,329,100 $15,146,883,498
2013 $62,555,417,415 $14,902,488,604
2012 $60,561,635,556 $13,708,925,477
2011 $57,948,261,616 $13,008,746,039
2010 $53,801,053,353 $11,859,312,725
2009 $48,223,781,477 $11,597,002,835
2008 $48,091,433,554 $10,432,962,635
2007 $43,965,458,509 $9,228,637,768
2006 $37,879,830,084 $7,638,739,123
2005 $35,777,560,684 $7,030,149,730
2004 $22,322,387,382 $6,087,360,684
2003 $21,403,167,848 $5,071,947,798
2002 $27,137,440,786 $6,205,847,214
2001 $25,601,823,688 $6,331,970,324
2000 $24,305,780,629 $6,813,566,099
1999 $22,136,579,397 $4,153,725,884
1998 $21,672,215,547 $3,723,903,724
1997 $20,017,450,041 $3,338,949,152
1996 $18,241,622,548 $2,907,517,604
1995 $16,637,370,839 $2,813,313,279
1994 $14,644,734,599 $2,167,569,046
1993 $13,081,042,400 $1,878,253,767
1992 $11,605,382,504 $2,257,129,792
1991 $9,824,483,340 $3,473,562,628
1990 $7,073,675,545 $3,096,289,800
1989 $6,686,593,060 $2,736,243,800
1988 $5,374,299,981 $2,613,926,800
1987 $5,827,050,753 $2,047,200,000
1986 $6,122,128,558 $2,318,000,000
1985 $5,044,579,979 $2,009,400,000
1984 $11,594,000,000 $1,816,200,000
1983 $9,220,600,000 $1,623,600,000
1982 $8,267,400,000 $1,474,200,000
1981 $7,561,300,000 $1,479,400,000
1980 $6,761,300,000 $1,383,800,000
1979 $5,498,800,000 $1,080,600,000
1978 $4,734,400,000 $974,200,000
1977 $4,587,100,000 $947,000,000
1976 $3,951,500,000 $879,000,000
1975 $3,599,200,000 $681,400,000
1974 $2,925,700,000 $565,399,322
1973 $2,344,800,000 $466,798,973
1972 $1,987,400,000 $371,998,958
1971 $1,666,500,000 $362,800,000
1970 $1,485,500,000 $331,200,000
1969 $1,230,500,000 $391,820,400
1968 $1,079,100,000 $367,968,800
1967 $1,034,800,000 $369,124,200
1966 $983,900,000 $368,948,600
1965 $888,100,000 $353,251,800
1964 $1,025,599,900 $325,281,200
1963 $940,799,900 $294,883,400
1962 $824,100,000 $281,896,800
1961 $654,100,200 $271,066,000
1960 $672,399,700 $273,187,200

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

GeoRank.org/economy/dominican-republic/haiti | CC BY

GDP per capita in Dominican Republic vs Haiti by year

Dominican Republic
GDP per capita

GDP per capita, PPP
Haiti
GDP per capita

GDP per capita, PPP
1x
Year Current $
Dominican Republic Haiti
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $11,059 - $2,694 -
2024 $10,876 $27,542 $2,060 $3,194
2023 $10,630 $25,840 $1,682 $3,292
2022 $10,104 $24,626 $1,748 $3,275
2021 $8,527 $22,053 $1,825 $3,145
2020 $7,135 $18,998 $1,290 $3,103
2019 $8,183 $19,767 $1,352 $3,237
2018 $7,883 $17,995 $1,496 $3,197
2017 $7,413 $16,846 $1,395 $3,339
2016 $7,160 $16,282 $1,318 $3,253
2015 $6,801 $14,804 $1,411 $3,026
2014 $6,496 $13,465 $1,460 $3,076
2013 $6,137 $12,414 $1,458 $3,042
2012 $6,014 $11,777 $1,361 $2,830
2011 $5,827 $11,695 $1,312 $2,858
2010 $5,479 $11,246 $1,210 $2,695
2009 $4,974 $10,382 $1,197 $2,855
2008 $5,024 $10,346 $1,095 $2,724
2007 $4,650 $9,951 $985 $2,647
2006 $4,055 $9,130 $829 $2,504
2005 $3,878 $8,215 $776 $2,427
2004 $2,452 $7,375 $683 $2,322
2003 $2,383 $7,098 $579 $2,331
2002 $3,066 $7,158 $721 $2,248
2001 $2,936 $6,848 $749 $2,230
2000 $2,831 $6,639 $821 $2,229
1999 $2,621 $6,305 $510 $2,201
1998 $2,608 $5,963 $465 $2,152
1997 $2,449 $5,618 $425 $2,122
1996 $2,271 $5,161 $377 $2,070
1995 $2,109 $4,871 $372 $1,989
1994 $1,892 $4,599 $292.1 $1,807
1993 $1,722 $4,474 $258.1 $2,048
1992 $1,558 $4,151 $316 $2,158
1991 $1,346 $3,722 $497 $2,273
1990 $989 $3,641 $452 $2,202
1989 $955 - $407 -
1988 $784 - $397 -
1987 $868 - $318 -
1986 $932 - $367 -
1985 $784 - $325 -
1984 $1,844 - $299.2 -
1983 $1,500 - $272.8 -
1982 $1,376 - $252.6 -
1981 $1,288 - $258.5 -
1980 $1,180 - $246.5 -
1979 $984 - $196.2 -
1978 $868 - $180.3 -
1977 $863 - $178.7 -
1976 $763 - $169.1 -
1975 $713 - $133.6 -
1974 $595 - $113 -
1973 $490 - $95.1 -
1972 $427 - $77.3 -
1971 $368 - $76.8 -
1970 $338 - $71.5 -
1969 $287.7 - $86.1 -
1968 $259.6 - $82.4 -
1967 $256.2 - $84.2 -
1966 $250.9 - $85.7 -
1965 $233.2 - $83.6 -
1964 $277.3 - $78.5 -
1963 $262.2 - $72.4 -
1962 $236.8 - $70.4 -
1961 $193.9 - $69 -
1960 $205.7 - $70.8 -

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

GeoRank.org/economy/dominican-republic/haiti | CC BY

The Dominican Republic's GDP per capita is $11,059, ranking 83/197, compared to $2,694 in Haiti, ranking 150/197. Adjusted for purchasing power (GDP per capita PPP), the Dominican Republic ranks 76th at $27,542, while Haiti ranks 177th at $3,194.

Economic indicators

Dominican Republic Haiti
Gross domestic product
$127B
2025
$32.1B
2025
GDP rank
65/197
2025
112/197
2025
GDP growth
2.12%
2024-2025
-2.71%
2024-2025
GDP per capita
$11,059
2025
$2,694
2025
GDP per capita rank
83/197
2025
150/197
2025
GDP per capita, PPP
$27,542
2024
$3,194
2024
GDP per capita PPP rank
76/197
2024
177/197
2024
Government debt
$75.2B
2025
$3.95B
2025
Debt-to-GDP ratio
59%
2025
12.3%
2025
Government debt per person
$6,525
2025
$332
2025
Government debt per person rank
73/185
2025
177/185
2025
Average annual personal income after taxes
$7,179
2026
$2,152
2026
Income share by richest 10%
29.5%
2024
31.2%
2012
Income share by poorest 10%
2.3%
2024
2.1%
2012
Government expenditure, % of GDP
19.3%
2025
6.19%
2025
Consumer prices inflation
3.87%
2024-2025
28.6%
2024-2025
Central bank interest rate
5.5%
2025
n/a
Unemployment rate
5.17%
2025
14.1%
2012
Population
11656588
12106577

Spending and national debt comparison by year

Dominican Republic
Spending

Debt
Haiti
Spending

Debt
1x
Year % of GDP
Dominican Republic Haiti
Government spending Government debt Government spending Government debt
2025 19.3% 59% 6.19% 12.3%
2024 19.5% 58.8% 5.25% 15.5%
2023 19.1% 60.5% 6.46% 27.8%
2022 18.5% 59.6% 8.33% 29.2%
2021 18.4% 62.8% 9.42% 28.4%
2020 22.2% 71.8% 9.86% 22.3%
2019 17.8% 53.5% 9.59% 26.5%
2018 16.5% 50.8% 11.3% 24.1%
2017 17.3% 49.5% 10.2% 22.5%
2016 17% 46.7% 10.5% 24.4%
2015 16.7% 44.8% 12.7% 23.9%
2014 17% 45% 14.6% 21.4%
2013 18.5% 46.8% 15.9% 25.1%
2012 19.8% 42.4% 16.4% 24.1%
2011 16% 39.1% 14.1% 22.3%
2010 16.1% 37.4% 12.6% 24.9%
2009 16.2% 36.8% 11.6% 19.4%
2008 18.5% 33.6% 11.2% 33.9%
2007 16.3% 32.9% 11.1% 24.4%
2006 17% 36% 9.67% 32.2%
2005 15.5% 38.3% 8.75% 29.7%
2004 17.3% 34.3% 7.38% 30.4%
2003 17.2% 48.2% 7.83% 37.8%
2002 16.5% 21.5% 6.64% 32%
2001 14.9% 20.4% 6.11% 28.8%
2000 14.1% 16.7% 6.25% 32.5%
1999 13.4% 16% 6.91% 24.1%
1998 12.6% 13.2% 5.4% 24%
1997 13.2% 13.8% 5.46% 26.2%
1996 11.4% 23% - 26.2%
1995 11% 25.7% - 26.2%
1994 12.1% 28.5% - 35.3%
1993 13% 36.1% - 98%
1992 10.4% 38.5% - 118.9%
1991 8.65% 47.3% - 80.7%
1990 9.1% 84.7% - 85.1%
1989 11.3% 62.5% - 98.7%
1988 12.8% 77% - 90.9%
1987 11.2% 86.9% 32.4% 58.6%
1986 10.4% 63.8% 15.1% 26.5%
1985 9.8% 66.3% 17.4% 25.6%
1984 9.32% 28.9% 16.9% 27.3%
1983 10.2% 32.9% 21.9% 28.9%
1982 10.2% 33.1% 20.7% 25.5%
1981 12.1% 29.8% 17.4% 23.7%
1980 12.8% 15.2% 17.2% 20.3%
1979 13.8% 24% 13.1% 19.8%
1978 12.3% 20.9% 18.9% 20.1%
1977 11.4% 16.4% 16.7% 18.5%
1976 12.5% 15.6% 13.4% 14.9%
1975 13.7% 13.1% 12.8% 14.2%
1974 14.6% 14.6% 9.24% 13.3%
1973 13.7% 14.6% 9.4% 8.92%
1972 14.1% 16.4% 11.2% 11.1%
1971 13.8% 17.8% 11.2% 11%
1970 13.3% 18% 11.4% 12.5%
1969 15.5% 17.4% 10.1% -
1968 15.5% 18.1% 10.3% -
1967 15% 16.2% 7.52% -
1966 15.2% 14.5% 7.2% -
1965 12.8% - 7.91% -
1964 16.7% - - -
1963 15.1% - 8.95% -
1962 15.7% - - -
1961 20% - - -
1960 20.1% - 7.34% 21.6%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1960–1996, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1997–2025, retrieved 2026-07-08).

GeoRank.org/economy/dominican-republic/haiti | CC BY

In 2025, the Dominican Republic's government spending was $24.6B, accounting for 19.3% of its GDP, while Haiti spent $1.99B, or 6.19% of GDP.

Debt-to-GDP ratio is 59% in the Dominican Republic and 12.3% in Haiti, ranking 80/185 and 179/185, respectively.

Government deficit by year

Deficit/surplus
Dominican Republic

Haiti
1x
Year Deficit/surplus, % of GDP
Dominican Republic Haiti
2025 -3.56% -0.22%
2024 -3.09% 6.96%
2023 -3.28% 0.77%
2022 -3.25% -1.75%
2021 -2.92% -2.45%
2020 -7.94% -1.96%
2019 -3.46% -1.99%
2018 -2.17% -1.13%
2017 -3.12% -0.32%
2016 -3.11% 0.12%
2015 -0.03% -1.47%
2014 -2.76% -3.64%
2013 -4.41% -3.98%
2012 -6.26% -2.71%
2011 -3.07% -1.43%
2010 -2.97% -1.5%
2009 -2.9% -2%
2008 -3.43% -1.8%
2007 0.28% -1.55%
2006 -1.69% -0.91%
2005 -0.71% -0.83%
2004 -3.6% -1.34%
2003 -4.24% -2.24%
2002 -2.28% -1.8%
2001 -0.73% -1.55%
2000 -0.86% -1.36%
1999 -0.79% -1.54%
1998 -0.29% 0.21%
1997 -0.64% 0.37%
1996 0.14% -
1995 0.82% -
1994 -0.39% -
1993 -0.16% -
1992 2.35% -
1991 0.11% -
1990 0.39% -
1989 -0.09% -
1988 -1.68% -
1987 -0.75% -4.94%
1986 -0.57% -1.4%
1985 -1.27% -0.97%
1984 -0.95% -3.52%
1983 -1.74% -5.72%
1982 -2.4% -3.93%
1981 -1.92% -4.38%
1980 -1.82% -5.68%
1979 -3.26% -2.21%
1978 -0.82% -3.24%
1977 0.15% -2.85%
1976 -0.22% -1.16%
1975 1.37% -1.73%
1974 -0.93% 0.23%
1973 -0.53% 0.03%
1972 -1.73% 0.24%
1971 -0.85% -0.08%
1970 -0.68% -0.19%
1969 -0.99% -0.39%
1968 -0.99% -0.46%
1967 -1.68% 0%
1966 -2.14% 0%
1965 -1.84% 0%
1964 -1.36% -
1963 -0.39% 0%
1962 -1.17% -
1961 -3% -
1960 -0.61% 0.006%
1959 -0.29% -1.11%
1958 -1.29% -2.21%
1957 0.21% 0.28%
1956 -0.05% -2.18%
1955 1.47% -0.86%
1954 1.43% -0.81%
1953 2.79% -1.01%
1952 0% -
1951 -2.58% -
1950 -3.66% -
1949 - -0.12%
1948 - 0.21%
1947 - 1.06%
1946 - 0.51%
1945 - 0.47%
1944 - -
1943 - -
1942 - -
1941 - -0.21%
1940 - 0.13%
1939 - -0.16%
1938 - 0.15%
1937 - -0.08%
1936 - -0.06%
1935 - -0.2%
1934 - -1.23%
1933 - 0%
1932 - 0.4%
1931 - -0.49%
1930 - -0.52%
1929 - -0.32%
1928 - -0.25%
1927 - 0.73%
1926 - -0.45%
1925 - 0.05%
1924 - -0.14%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1924–1996, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1997–2025, retrieved 2026-07-08).

GeoRank.org/economy/dominican-republic/haiti | CC BY

In 2025, the Dominican Republic's government deficit, the difference between spending and revenue, was $4.53B, equivalent to 3.56% of GDP. This compares to Haiti's deficit of $71.5M, or 0.22% of GDP.

Over the past 66 years, the Dominican Republic recorded a fiscal deficit in 58 of those years, while Haiti ran a deficit in 41 years. On average, the Dominican Republic posted an annual deficit equal to 1.65% of GDP, compared to deficit of 1.4% of GDP for Haiti.

Inflation comparison by year

Inflation
Dominican Republic

Haiti
1x
Year Consumer prices inflation
Dominican Republic Haiti
2025 3.87% 28.6%
2024 3.3% 26.9%
2023 4.79% 36.8%
2022 8.81% 34%
2021 8.24% 16.8%
2020 3.78% 22.8%
2019 1.81% 18.7%
2018 3.56% 12.5%
2017 3.28% 10.7%
2016 1.61% 11.5%
2015 0.84% 6.73%
2014 3% 3.44%
2013 4.83% 4.77%
2012 3.69% 5.02%
2011 5.8% 6.33%
2010 6.33% 4.83%
2009 1.44% 0.39%
2008 10.6% 15.3%
2007 6.14% 6.56%
2006 7.57% 11.3%
2005 4.19% 14%
2004 51.5% 21%
2003 27.4% 28.7%
2002 5.22% 7.03%
2001 8.88% 13.3%
2000 7.72% 9.33%
1999 6.47% 3%
1998 4.83% 5.27%
1997 8.3% 20.6%

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

GeoRank.org/economy/dominican-republic/haiti | CC BY

Over the past 29 years, the Dominican Republic has recorded an average annual inflation rate of 7.51%, compared with 14% in Haiti. In 2025, inflation was 3.87% in the Dominican Republic and 28.6% in Haiti.

Top exports between countries

Dominican Republic
Export category Export value
Processed food, beverages & tobacco $251M
Textiles & consumer goods $225M
Chemicals & pharma $192M
Metals $177M
Raw materials & minerals $148M
Raw agricultural goods $83.3M
Wood & paper products $67.1M
Machinery & equipment $47.7M
Animal & marine products $6.31M
Miscellaneous $5.44M
Haiti
Export category Export value
Machinery & equipment $2.23M
Raw materials & minerals $648K
Textiles & consumer goods $373K
Metals $137K
Animal & marine products $75K
Chemicals & pharma $72K
Miscellaneous $14K
Wood & paper products $13K
Raw agricultural goods $11K
Processed food, beverages & tobacco $3K

Balance of trade

Dominican Republic Haiti
Current account balance
-$1.49B
2025
-$145M
2024
Current account balance ranking
128/190
2025
85/190
2024
Current account balance, % of GDP
-1.17%
2025
-0.6%
2024
Goods imports
$29.8B
2025
$4.27B
2024
Goods exports
$16B
2025
$767M
2024
Service imports
$5.65B
2025
$518M
2024
Service exports
$14.4B
2025
$96.6M
2024
Imports of goods and services, % of GDP
27.9%
2025
14.3%
2025
Exports of goods and services, % of GDP
23.6%
2025
1.56%
2025

Economic freedom indices

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

Dominican Republic Haiti
Economic freedom 63.8 46.1
Economic freedom ranking 77/197 178/197
Property rights 53.9 6.6
Government integrity 39.8 13
Judicial effectiveness 58 17.3
Tax burden 84.4 81.7
Government spending 89.1 98.7
Fiscal health 76.6 99.5
Business freedom 71.4 30.7
Labor freedom 53.2 54.7
Monetary freedom 72.1 45.1
Trade freedom 67.4 66.4
Investment freedom 60 20
Financial freedom 40 20

Economic freedom comparison by year

Dominican Republic
Haiti
1x
Year Economic freedom index
Dominican Republic Haiti
2026 63.8 46.1
2025 64.3 46.1
2024 62.9 48.2
2023 62.6 49.9
2022 63 50
2021 62.1 50.8
2020 60.9 52.3
2019 61 52.7
2018 61.6 55.8
2017 62.9 49.6
2016 61 51.3
2015 61 51.3
2014 61.3 48.9
2013 59.7 48.1
2012 60.2 50.7
2011 60 52.1
2010 60.3 50.8
2009 59.2 50.5
2008 57.7 49
2007 56.8 51.4
2006 56.3 49.2
2005 55.1 48.4
2004 54.6 51.2
2003 57.8 50.6
2002 58.6 47.9
2001 59.1 47.1
2000 59 45.7
1999 58.1 45.9
1998 58.1 45.7
1997 53.5 45.8
1996 58.1 41
1995 55.8 43

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

GeoRank.org/economy/dominican-republic/haiti | CC BY

The Economic Freedom Index for the Dominican Republic is 63.8, ranking 77/197, compared to 46.1 for Haiti, ranking 178/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Dominican Republic Haiti
Services, % of GDP
60.1%
2025
54.2%
2025
Industry, % of GDP
28.4%
2025
27.5%
2025
Agriculture, forestry, and fishing, % of GDP
4.6%
2025
15.8%
2025
GNI, Atlas method
$122B
2025
$23.9B
2025
GNI per capita, PPP
$26,980
2025
$3,130
2025
Total reserves including gold
$14.8B
2025
$3.39B
2025
Total reserves ranking
71/177
2025
118/177
2025
Net foreign direct investment
-$5.03B
2025
-$20M
2024
Net inflows of foreign direct investment
$4.48B
2024
$20M
2024
Net outflows of foreign direct investment
-$47.3M
2024
$0
2024
Servicing debt to the IMF, % of GNI
5.61%
2024
2.24%
2024
Poverty at national poverty lines
17.3%
2025
58.5%
2012
Gross capital formation, % of GDP
24.7%
2025
12.1%
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/dominican-republic/haiti | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Public Finances in Modern History (1924–1996, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Fiscal Monitor (1997–2025, 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 (2017–2025, 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.