Skip to content

Economy of Dominican Republic vs Russia compared: GDP & Debt

Updated on by Georank

The Dominican Republic has a GDP of $127B compared to $2.56T for Russia, ranking 65/197 and 8/197 by economy size, respectively.

The Dominican Republic has $75.2B in government debt (59% of GDP), compared to $440B (17.2% of GDP) in Russia.

Dominican Republic vs Russia GDP by year

Dominican Republic
Russia
1x
Year GDP, current $
Dominican Republic Russia
2025 $127,407,463,759 $2,561,310,169,359
2024 $124,282,245,639 $2,186,462,268,813
2023 $120,456,239,154 $2,046,284,838,151
2022 $113,478,103,598 $2,292,495,097,681
2021 $94,850,719,517 $1,829,186,719,575
2020 $78,546,672,407 $1,493,075,894,362
2019 $89,146,130,745 $1,693,115,002,708
2018 $84,994,732,049 $1,657,328,773,461
2017 $79,070,274,743 $1,574,199,360,089
2016 $75,552,902,636 $1,276,786,350,881
2015 $70,966,782,572 $1,363,482,182,198
2014 $67,014,329,100 $2,059,241,589,895
2013 $62,555,417,415 $2,292,470,078,346
2012 $60,561,635,556 $2,208,293,553,878
2011 $57,948,261,616 $2,045,922,753,398
2010 $53,801,053,353 $1,524,916,715,224
2009 $48,223,781,477 $1,222,645,900,056
2008 $48,091,433,554 $1,660,848,058,303
2007 $43,965,458,509 $1,299,703,478,482
2006 $37,879,830,084 $989,932,071,353
2005 $35,777,560,684 $764,015,973,481
2004 $22,322,387,382 $591,016,690,732
2003 $21,403,167,848 $430,347,420,185
2002 $27,137,440,786 $345,470,494,418
2001 $25,601,823,688 $306,602,070,621
2000 $24,305,780,629 $259,710,142,197
1999 $22,136,579,397 $195,907,128,351
1998 $21,672,215,547 $270,955,486,862
1997 $20,017,450,041 $404,928,954,192
1996 $18,241,622,548 $391,724,890,744
1995 $16,637,370,839 $395,537,185,735
1994 $14,644,734,599 $395,077,301,248
1993 $13,081,042,400 $435,083,713,851
1992 $11,605,382,504 $460,290,556,901
1991 $9,824,483,340 $517,962,962,963
1990 $7,073,675,545 $517,014,446,228
1989 $6,686,593,060 $506,631,299,735
1988 $5,374,299,981 $554,828,660,436
1987 $5,827,050,753 -
1986 $6,122,128,558 -
1985 $5,044,579,979 -
1984 $11,594,000,000 -
1983 $9,220,600,000 -
1982 $8,267,400,000 -
1981 $7,561,300,000 -
1980 $6,761,300,000 -
1979 $5,498,800,000 -
1978 $4,734,400,000 -
1977 $4,587,100,000 -
1976 $3,951,500,000 -
1975 $3,599,200,000 -
1974 $2,925,700,000 -
1973 $2,344,800,000 -
1972 $1,987,400,000 -
1971 $1,666,500,000 -
1970 $1,485,500,000 -
1969 $1,230,500,000 -
1968 $1,079,100,000 -
1967 $1,034,800,000 -
1966 $983,900,000 -
1965 $888,100,000 -
1964 $1,025,599,900 -
1963 $940,799,900 -
1962 $824,100,000 -
1961 $654,100,200 -
1960 $672,399,700 -

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

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

GDP per capita in Dominican Republic vs Russia by year

Dominican Republic
GDP per capita

GDP per capita, PPP
Russia
GDP per capita

GDP per capita, PPP
1x
Year Current $
Dominican Republic Russia
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $11,059 - $17,847 -
2024 $10,876 $27,542 $15,219 $47,362
2023 $10,630 $25,840 $14,227 $44,269
2022 $10,104 $24,626 $15,894 $40,939
2021 $8,527 $22,053 $12,637 $38,638
2020 $7,135 $18,998 $10,280 $31,491
2019 $8,183 $19,767 $11,640 $30,964
2018 $7,883 $17,995 $11,399 $28,629
2017 $7,413 $16,846 $10,835 $25,778
2016 $7,160 $16,282 $8,804 $24,012
2015 $6,801 $14,804 $9,427 $23,994
2014 $6,496 $13,465 $14,277 $25,688
2013 $6,137 $12,414 $15,941 $26,020
2012 $6,014 $11,777 $15,402 $24,274
2011 $5,827 $11,695 $14,305 $22,790
2010 $5,479 $11,246 $10,675 $20,490
2009 $4,974 $10,382 $8,563 $19,390
2008 $5,024 $10,346 $11,635 $20,164
2007 $4,650 $9,951 $9,101 $16,648
2006 $4,055 $9,130 $6,920 $14,912
2005 $3,878 $8,215 $5,323 $11,822
2004 $2,452 $7,375 $4,102 $10,227
2003 $2,383 $7,098 $2,975 $9,255
2002 $3,066 $7,158 $2,378 $8,037
2001 $2,936 $6,848 $2,100 $7,361
2000 $2,831 $6,639 $1,772 $6,825
1999 $2,621 $6,305 $1,331 $5,914
1998 $2,608 $5,963 $1,835 $5,465
1997 $2,449 $5,618 $2,738 $5,700
1996 $2,271 $5,161 $2,644 $5,518
1995 $2,109 $4,871 $2,666 $5,613
1994 $1,892 $4,599 $2,662 $5,734
1993 $1,722 $4,474 $2,931 $6,420
1992 $1,558 $4,151 $3,099 $6,862
1991 $1,346 $3,722 $3,490 $7,858
1990 $989 $3,641 $3,494 $8,028
1989 $955 - $3,430 -
1988 $784 - $3,778 -
1987 $868 - - -
1986 $932 - - -
1985 $784 - - -
1984 $1,844 - - -
1983 $1,500 - - -
1982 $1,376 - - -
1981 $1,288 - - -
1980 $1,180 - - -
1979 $984 - - -
1978 $868 - - -
1977 $863 - - -
1976 $763 - - -
1975 $713 - - -
1974 $595 - - -
1973 $490 - - -
1972 $427 - - -
1971 $368 - - -
1970 $338 - - -
1969 $287.7 - - -
1968 $259.6 - - -
1967 $256.2 - - -
1966 $250.9 - - -
1965 $233.2 - - -
1964 $277.3 - - -
1963 $262.2 - - -
1962 $236.8 - - -
1961 $193.9 - - -
1960 $205.7 - - -

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

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

The Dominican Republic's GDP per capita is $11,059, ranking 83/197, compared to $17,847 in Russia, ranking 68/197. Adjusted for purchasing power (GDP per capita PPP), the Dominican Republic ranks 76th at $27,542, while Russia ranks 50th at $47,362.

Economic indicators

Dominican Republic Russia
Gross domestic product
$127B
2025
$2.56T
2025
GDP rank
65/197
2025
8/197
2025
GDP growth
2.12%
2024-2025
1%
2024-2025
GDP per capita
$11,059
2025
$17,847
2025
GDP per capita rank
83/197
2025
68/197
2025
GDP per capita, PPP
$27,542
2024
$47,362
2024
GDP per capita PPP rank
76/197
2024
50/197
2024
Government debt
$75.2B
2025
$440B
2025
Debt-to-GDP ratio
59%
2025
17.2%
2025
Government debt per person
$6,525
2025
$3,068
2025
Government debt per person rank
73/185
2025
105/185
2025
Average annual personal income after taxes
$7,179
2026
$11,183
2026
Market capitalization of domestic companies n/a
$650B
2023
Number of millionaires n/a
447,000
2026
Number of billionaires n/a
147
2026
Income share by richest 10%
29.5%
2024
25.1%
2023
Income share by poorest 10%
2.3%
2024
3.1%
2023
Government expenditure, % of GDP
19.3%
2025
39.1%
2025
Consumer prices inflation
3.87%
2024-2025
8.7%
2024-2025
Central bank interest rate
5.5%
2025
14.5%
2026
Unemployment rate
5.17%
2025
2.13%
2025
Population
11656588
142643173

Spending and national debt comparison by year

Dominican Republic
Spending

Debt
Russia
Spending

Debt
1x
Year % of GDP
Dominican Republic Russia
Government spending Government debt Government spending Government debt
2025 19.3% 59% 39.1% 17.2%
2024 19.5% 58.8% 36.7% 14.8%
2023 19.1% 60.5% 36.1% 15.2%
2022 18.5% 59.6% 35.1% 15.1%
2021 18.4% 62.8% 34.9% 16.5%
2020 22.2% 71.8% 39.2% 19.2%
2019 17.8% 53.5% 33.8% 13.7%
2018 16.5% 50.8% 32.6% 13.6%
2017 17.3% 49.5% 34.8% 14.3%
2016 17% 46.7% 36.6% 14.8%
2015 16.7% 44.8% 35.3% 15.3%
2014 17% 45% 34.9% 15.1%
2013 18.5% 46.8% 34.7% 12.3%
2012 19.8% 42.4% 34% 11.2%
2011 16% 39.1% 33.3% 10.3%
2010 16.1% 37.4% 35.5% 10.1%
2009 16.2% 36.8% 38.6% 9.92%
2008 18.5% 33.6% 32% 7.45%
2007 16.3% 32.9% 31.9% 8.03%
2006 17% 36% 29% 9.8%
2005 15.5% 38.3% 29.5% 14.9%
2004 17.3% 34.3% 29.6% 20.8%
2003 17.2% 48.2% 32.6% 28.3%
2002 16.5% 21.5% 33.8% 37.6%
2001 14.9% 20.4% 31.5% 44.4%
2000 14.1% 16.7% 30.7% 55.9%
1999 13.4% 16% 34.3% 92.4%
1998 12.6% 13.2% 39.7% 135.2%
1997 13.2% 13.8% - 51.5%
1996 11.4% 23% - 51.9%
1995 11% 25.7% - 53.7%
1994 12.1% 28.5% - 63.5%
1993 13% 36.1% - 92.4%
1992 10.4% 38.5% - 116%
1991 8.65% 47.3% - -
1990 9.1% 84.7% - -
1989 11.3% 62.5% - -
1988 12.8% 77% - -
1987 11.2% 86.9% - -
1986 10.4% 63.8% - -
1985 9.8% 66.3% - -
1984 9.32% 28.9% - -
1983 10.2% 32.9% - -
1982 10.2% 33.1% - -
1981 12.1% 29.8% - -
1980 12.8% 15.2% - -
1979 13.8% 24% - -
1978 12.3% 20.9% - -
1977 11.4% 16.4% - -
1976 12.5% 15.6% - -
1975 13.7% 13.1% - -
1974 14.6% 14.6% - -
1973 13.7% 14.6% - -
1972 14.1% 16.4% - -
1971 13.8% 17.8% - -
1970 13.3% 18% - -
1969 15.5% 17.4% - -
1968 15.5% 18.1% - -
1967 15% 16.2% - -
1966 15.2% 14.5% - -
1965 12.8% - - -
1964 16.7% - - -
1963 15.1% - - -
1962 15.7% - - -
1961 20% - - -
1960 20.1% - - -

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

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

In 2025, the Dominican Republic's government spending was $24.6B, accounting for 19.3% of its GDP, while Russia spent $1T, or 39.1% of GDP.

Debt-to-GDP ratio is 59% in the Dominican Republic and 17.2% in Russia, ranking 80/185 and 175/185, respectively.

Government deficit by year

Deficit/surplus
Dominican Republic

Russia
1x
Year Deficit/surplus, % of GDP
Dominican Republic Russia
2025 -3.56% -3.9%
2024 -3.09% -1.59%
2023 -3.28% -2.24%
2022 -3.25% -1.34%
2021 -2.92% 0.78%
2020 -7.94% -3.99%
2019 -3.46% 1.93%
2018 -2.17% 2.92%
2017 -3.12% -1.47%
2016 -3.11% -3.67%
2015 -0.03% -3.39%
2014 -2.76% -1.07%
2013 -4.41% -1.16%
2012 -6.26% 0.38%
2011 -3.07% 1.43%
2010 -2.97% -3.19%
2009 -2.9% -5.89%
2008 -3.43% 4.55%
2007 0.28% 5.59%
2006 -1.69% 7.8%
2005 -0.71% 7.6%
2004 -3.6% 4.57%
2003 -4.24% 1.35%
2002 -2.28% 0.67%
2001 -0.73% 2.99%
2000 -0.86% 3.11%
1999 -0.79% -3.59%
1998 -0.29% -7.42%
1997 -0.64% -
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% -
1986 -0.57% -
1985 -1.27% -
1984 -0.95% -
1983 -1.74% -
1982 -2.4% -
1981 -1.92% -
1980 -1.82% -
1979 -3.26% -
1978 -0.82% -
1977 0.15% -
1976 -0.22% -
1975 1.37% -
1974 -0.93% -
1973 -0.53% -
1972 -1.73% -
1971 -0.85% -
1970 -0.68% -
1969 -0.99% -
1968 -0.99% -
1967 -1.68% -
1966 -2.14% -
1965 -1.84% -
1964 -1.36% -
1963 -0.39% -
1962 -1.17% -
1961 -3% -
1960 -0.61% -
1959 -0.29% -
1958 -1.29% -
1957 0.21% -
1956 -0.05% -
1955 1.47% -
1954 1.43% -
1953 2.79% -
1952 0% -
1951 -2.58% -
1950 -3.66% -
1949 - -
1948 - -
1947 - -
1946 - -
1945 - -
1944 - -
1943 - -
1942 - -
1941 - -
1940 - 0.15%
1939 - 0.12%
1938 - 0.16%
1937 - 0.12%
1936 - 0.1%
1935 - 0.07%
1934 - 0.25%
1933 - 0.58%
1932 - 0.06%
1931 - -1.12%
1930 - -1.62%
1929 - -0.4%
1928 - -0.4%
1927 - -
1926 - -
1925 - -
1924 - -
1923 - -
1922 - -
1921 - -
1920 - -
1919 - -
1918 - -
1917 - -
1916 - -
1915 - -
1914 - -
1913 - -
1912 - 0.69%
1911 - 1.26%
1910 - 1.52%
1909 - -0.15%
1908 - -0.83%
1907 - -0.86%
1906 - -3.19%
1905 - -7.72%
1904 - -5.13%
1903 - 1.04%
1902 - -1.57%
1901 - 0.14%
1900 - -0.36%
1899 - 0.66%
1898 - 0.03%
1897 - 0.34%
1896 - 1.3%
1895 - 0.7%
1894 - 1.43%
1893 - 0.63%
1892 - -1.16%
1891 - -0.97%
1890 - 0.01%
1889 - 1.34%
1888 - 0.88%
1887 - 0.14%
1886 - -0.84%
1885 - -0.75%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1885–1996, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1997–2025, retrieved 2026-07-08).

GeoRank.org/economy/dominican-republic/russia | 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 Russia's deficit of $100B, or 3.9% of GDP.

Over the past 28 years, the Dominican Republic recorded a fiscal deficit in 27 of those years, while Russia ran a deficit in 14 years. On average, the Dominican Republic posted an annual deficit equal to 2.74% of GDP, compared to surplus of 0.06% of GDP for Russia.

Inflation comparison by year

Inflation
Dominican Republic

Russia
1x
Year Consumer prices inflation
Dominican Republic Russia
2025 3.87% 8.7%
2024 3.3% 8.4%
2023 4.79% 5.9%
2022 8.81% 13.7%
2021 8.24% 6.7%
2020 3.78% 3.4%
2019 1.81% 4.5%
2018 3.56% 2.9%
2017 3.28% 3.7%
2016 1.61% 7%
2015 0.84% 15.5%
2014 3% 7.8%
2013 4.83% 6.8%
2012 3.69% 5.1%
2011 5.8% 8.4%
2010 6.33% 6.8%
2009 1.44% 11.6%
2008 10.6% 14.1%
2007 6.14% 9%
2006 7.57% 9.7%
2005 4.19% 12.7%
2004 51.5% 10.9%
2003 27.4% 13.7%
2002 5.22% 15.8%
2001 8.88% 21.5%
2000 7.72% 20.8%
1999 6.47% 85.7%
1998 4.83% 27.7%
1997 8.3% 14.8%

Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2025, retrieved 2026-07-08); World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).

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

Over the past 29 years, the Dominican Republic has recorded an average annual inflation rate of 7.51%, compared with 13.2% in Russia. In 2025, inflation was 3.87% in the Dominican Republic and 8.7% in Russia.

Top exports between countries

Dominican Republic
Export category Export value
Processed food, beverages & tobacco $640K
Chemicals & pharma $504K
Metals $503K
Raw agricultural goods $269K
Machinery & equipment $87K
Animal & marine products $84K
Wood & paper products $34K
Textiles & consumer goods $12K
Raw materials & minerals $2K
Russia
Export category Export value
Metals $64.6M
Raw materials & minerals $15.6M
Raw agricultural goods $8.23M
Chemicals & pharma $3.81M
Wood & paper products $1.12M
Transport & tourism services $180K
Business & finance services $122K
Machinery & equipment $118K
Textiles & consumer goods $113K
Processed food, beverages & tobacco $65K

Balance of trade

Dominican Republic Russia
Current account balance
-$1.49B
2025
$43.1B
2025
Current account balance ranking
128/190
2025
14/190
2025
Current account balance, % of GDP
-1.17%
2025
+1.68%
2025
Goods imports
$29.8B
2025
$305B
2025
Goods exports
$16B
2025
$422B
2025
Service imports
$5.65B
2025
$94.8B
2025
Service exports
$14.4B
2025
$46.3B
2025
Imports of goods and services, % of GDP
27.9%
2025
15.5%
2025
Exports of goods and services, % of GDP
23.6%
2025
18.2%
2025

Economic freedom indices

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

Dominican Republic Russia
Economic freedom 63.8 50.3
Economic freedom ranking 77/197 161/197
Property rights 53.9 18.6
Government integrity 39.8 22.8
Judicial effectiveness 58 22.8
Tax burden 84.4 81.9
Government spending 89.1 61.3
Fiscal health 76.6 94.4
Business freedom 71.4 51.4
Labor freedom 53.2 59.1
Monetary freedom 72.1 61.8
Trade freedom 67.4 69.4
Investment freedom 60 30
Financial freedom 40 30

Economic freedom comparison by year

Dominican Republic
Russia
1x
Year Economic freedom index
Dominican Republic Russia
2026 63.8 50.3
2025 64.3 51.6
2024 62.9 52
2023 62.6 53.8
2022 63 56.1
2021 62.1 61.5
2020 60.9 61
2019 61 58.9
2018 61.6 58.2
2017 62.9 57.1
2016 61 50.6
2015 61 52.1
2014 61.3 51.9
2013 59.7 51.1
2012 60.2 50.5
2011 60 50.5
2010 60.3 50.3
2009 59.2 50.8
2008 57.7 49.8
2007 56.8 52.2
2006 56.3 52.4
2005 55.1 51.3
2004 54.6 52.8
2003 57.8 50.8
2002 58.6 48.7
2001 59.1 49.8
2000 59 51.8
1999 58.1 54.5
1998 58.1 52.8
1997 53.5 48.6
1996 58.1 51.6
1995 55.8 51.1

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

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

The Economic Freedom Index for the Dominican Republic is 63.8, ranking 77/197, compared to 50.3 for Russia, ranking 161/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Dominican Republic Russia
Services, % of GDP
60.1%
2025
58.9%
2025
Industry, % of GDP
28.4%
2025
29.7%
2025
Agriculture, forestry, and fishing, % of GDP
4.6%
2025
3.06%
2025
GNI, Atlas method
$122B
2025
$2.33T
2025
GNI per capita, PPP
$26,980
2025
$49,220
2025
Total reserves including gold
$14.8B
2025
$608B
2024
Total reserves ranking
71/177
2025
6/177
2024
Net foreign direct investment
-$5.03B
2025
-$12.4B
2025
Net inflows of foreign direct investment
$4.48B
2024
-$9.35B
2024
Net outflows of foreign direct investment
-$47.3M
2024
-$170M
2024
Servicing debt to the IMF, % of GNI
5.61%
2024
2.63%
2024
Poverty at national poverty lines
17.3%
2025
7.2%
2024
Gross capital formation, % of GDP
24.7%
2025
25.9%
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/russia | 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) | Public Finances in Modern History (1885–1996, 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 (2021–2025, 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.

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.