Gabon has a GDP of $21.4B compared to $9.23B for Montenegro, ranking 132/197 and 155/197 by economy size, respectively.
Gabon has $16.9B in government debt (78.9% of GDP), compared to $6.19B (67.1% of GDP) in Montenegro.
Gabon vs Montenegro GDP by year
| Year | GDP, current $ | |
|---|---|---|
Gabon
|
Montenegro
|
|
| 2025 | $21,427,119,323 | $9,232,801,465 |
| 2024 | $20,895,684,426 | $8,274,290,506 |
| 2023 | $19,388,372,071 | $7,643,318,276 |
| 2022 | $20,440,655,695 | $6,259,721,790 |
| 2021 | $19,444,935,097 | $5,822,908,964 |
| 2020 | $15,342,236,164 | $4,734,192,593 |
| 2019 | $16,874,405,465 | $5,483,622,632 |
| 2018 | $16,867,326,402 | $5,433,469,311 |
| 2017 | $14,929,487,485 | $4,803,964,684 |
| 2016 | $14,023,890,265 | $4,357,467,226 |
| 2015 | $14,383,107,763 | $4,010,884,107 |
| 2014 | $18,203,966,896 | $4,579,635,404 |
| 2013 | $17,595,744,798 | $4,422,097,042 |
| 2012 | $17,170,464,016 | $4,071,828,832 |
| 2011 | $18,210,307,744 | $4,507,127,585 |
| 2010 | $14,372,593,020 | $4,136,936,244 |
| 2009 | $12,113,699,068 | $4,159,063,347 |
| 2008 | $15,571,348,344 | $4,559,410,049 |
| 2007 | $12,455,409,587 | $3,682,586,459 |
| 2006 | $10,327,598,306 | $2,719,979,875 |
| 2005 | $9,582,783,991 | $2,258,016,380 |
| 2004 | $7,770,219,008 | $2,077,046,942 |
| 2003 | $6,511,903,365 | $1,708,196,981 |
| 2002 | $5,335,451,100 | $1,286,314,054 |
| 2001 | $5,023,265,413 | $1,159,869,246 |
| 2000 | $5,080,483,629 | $984,293,044 |
| 1999 | $4,662,992,036 | $828,950,327 |
| 1998 | $4,483,417,310 | $854,261,161 |
| 1997 | $5,326,817,115 | $838,288,806 |
| 1996 | $5,694,040,003 | - |
| 1995 | $4,958,845,648 | - |
| 1994 | $4,190,819,344 | - |
| 1993 | $4,378,645,081 | - |
| 1992 | $5,592,390,827 | - |
| 1991 | $5,402,919,785 | - |
| 1990 | $5,952,293,765 | - |
| 1989 | $4,186,411,464 | - |
| 1988 | $3,834,503,376 | - |
| 1987 | $3,281,797,043 | - |
| 1986 | $3,403,638,189 | - |
| 1985 | $3,339,914,757 | - |
| 1984 | $3,561,451,561 | - |
| 1983 | $3,391,275,732 | - |
| 1982 | $3,618,007,841 | - |
| 1981 | $3,862,269,121 | - |
| 1980 | $4,279,637,942 | - |
| 1979 | $3,030,251,120 | - |
| 1978 | $2,389,479,272 | - |
| 1977 | $2,809,349,069 | - |
| 1976 | $3,009,409,974 | - |
| 1975 | $2,157,592,940 | - |
| 1974 | $1,544,216,002 | - |
| 1973 | $722,780,701 | - |
| 1972 | $430,508,359 | - |
| 1971 | $381,687,073 | - |
| 1970 | $323,802,476 | - |
| 1969 | $318,124,701 | - |
| 1968 | $294,468,564 | - |
| 1967 | $271,543,680 | - |
| 1966 | $245,849,781 | - |
| 1965 | $226,474,286 | - |
| 1964 | $215,679,855 | - |
| 1963 | $154,480,244 | - |
| 1962 | $182,796,536 | - |
| 1961 | $167,637,907 | - |
| 1960 | $141,468,978 | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/gabon/montenegro | CC BY 
GDP per capita in Gabon vs Montenegro by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Gabon
|
Montenegro
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2025 | $8,263 | - | $14,817 | - |
| 2024 | $8,230 | $21,510 | $13,270 | $34,063 |
| 2023 | $7,803 | $20,756 | $12,258 | $31,863 |
| 2022 | $8,409 | $19,993 | $10,038 | $28,050 |
| 2021 | $8,181 | $18,524 | $9,316 | $23,690 |
| 2020 | $6,606 | $14,477 | $7,555 | $20,625 |
| 2019 | $7,441 | $15,950 | $8,749 | $23,706 |
| 2018 | $7,624 | $15,432 | $8,674 | $21,084 |
| 2017 | $6,922 | $14,797 | $7,674 | $19,357 |
| 2016 | $6,677 | $13,998 | $6,968 | $18,030 |
| 2015 | $7,047 | $14,306 | $6,421 | $16,092 |
| 2014 | $9,201 | $14,854 | $7,342 | $15,276 |
| 2013 | $9,198 | $14,498 | $7,103 | $14,692 |
| 2012 | $9,297 | $14,620 | $6,552 | $13,793 |
| 2011 | $10,219 | $14,784 | $7,266 | $14,347 |
| 2010 | $8,357 | $14,015 | $6,679 | $13,612 |
| 2009 | $7,291 | $13,384 | $6,727 | $12,976 |
| 2008 | $9,689 | $13,734 | $7,390 | $13,802 |
| 2007 | $8,004 | $14,391 | $5,979 | $12,452 |
| 2006 | $6,847 | $13,637 | $4,423 | $10,440 |
| 2005 | $6,548 | $14,028 | $3,676 | $8,314 |
| 2004 | $5,466 | $13,638 | $3,386 | $7,841 |
| 2003 | $4,711 | $13,564 | $2,790 | $7,340 |
| 2002 | $3,966 | $13,369 | $2,109 | $7,100 |
| 2001 | $3,836 | $13,556 | $1,910 | $6,772 |
| 2000 | $3,983 | $13,326 | $1,627 | $6,004 |
| 1999 | $3,751 | $13,629 | $1,368 | $5,684 |
| 1998 | $3,700 | $15,138 | $1,406 | $6,170 |
| 1997 | $4,509 | $14,837 | $1,375 | $5,798 |
| 1996 | $4,943 | $14,147 | - | - |
| 1995 | $4,415 | $13,750 | - | - |
| 1994 | $3,828 | $13,164 | - | - |
| 1993 | $4,106 | $12,757 | - | - |
| 1992 | $5,386 | $12,312 | - | - |
| 1991 | $5,345 | $12,760 | - | - |
| 1990 | $6,051 | $11,952 | - | - |
| 1989 | $4,374 | - | - | - |
| 1988 | $4,119 | - | - | - |
| 1987 | $3,624 | - | - | - |
| 1986 | $3,865 | - | - | - |
| 1985 | $3,898 | - | - | - |
| 1984 | $4,273 | - | - | - |
| 1983 | $4,182 | - | - | - |
| 1982 | $4,584 | - | - | - |
| 1981 | $5,026 | - | - | - |
| 1980 | $5,718 | - | - | - |
| 1979 | $4,155 | - | - | - |
| 1978 | $3,360 | - | - | - |
| 1977 | $4,048 | - | - | - |
| 1976 | $4,441 | - | - | - |
| 1975 | $3,258 | - | - | - |
| 1974 | $2,384 | - | - | - |
| 1973 | $1,140 | - | - | - |
| 1972 | $693 | - | - | - |
| 1971 | $627 | - | - | - |
| 1970 | $543 | - | - | - |
| 1969 | $545 | - | - | - |
| 1968 | $515 | - | - | - |
| 1967 | $482 | - | - | - |
| 1966 | $443 | - | - | - |
| 1965 | $415 | - | - | - |
| 1964 | $400 | - | - | - |
| 1963 | $290.7 | - | - | - |
| 1962 | $348 | - | - | - |
| 1961 | $323 | - | - | - |
| 1960 | $276.1 | - | - | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/gabon/montenegro | CC BY
Gabon's GDP per capita is $8,263, ranking 96/197, compared to $14,817 in Montenegro, ranking 71/197. Adjusted for purchasing power (GDP per capita PPP), Gabon ranks 90th at $21,510, while Montenegro ranks 65th at $34,063.
Economic indicators
|
Gabon
|
Montenegro
|
|
|---|---|---|
| Gross domestic product |
$21.4B
2025 |
$9.23B
2025 |
| GDP rank |
132/197
2025 |
155/197
2025 |
| GDP growth |
2.47%
2024-2025 |
2.74%
2024-2025 |
| GDP per capita |
$8,263
2025 |
$14,817
2025 |
| GDP per capita rank |
96/197
2025 |
71/197
2025 |
| GDP per capita, PPP |
$21,510
2024 |
$34,063
2024 |
| GDP per capita PPP rank |
90/197
2024 |
65/197
2024 |
| Government debt |
$16.9B
2025 |
$6.19B
2025 |
| Debt-to-GDP ratio |
78.9%
2025 |
67.1%
2025 |
| Government debt per person |
$6,521
2025 |
$9,942
2025 |
| Government debt per person rank |
74/185
2025 |
61/185
2025 |
| Average annual personal income after taxes |
$5,617
2026 |
$12,768
2026 |
| Market capitalization of domestic companies | n/a |
$3.79B
2012 |
| Income share by richest 10% |
27.7%
2017 |
24.7%
2021 |
| Income share by poorest 10% |
2.2%
2017 |
2.1%
2021 |
| Government expenditure, % of GDP |
28.6%
2025 |
43.9%
2025 |
| Consumer prices inflation |
1.77%
2024-2025 |
3.9%
2024-2025 |
| Unemployment rate |
17.4%
2024 |
11.5%
2024 |
| Population |
2676097
|
613759
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Gabon
|
Montenegro
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2025 | 28.6% | 78.9% | 43.9% | 67.1% |
| 2024 | 24.8% | 70.9% | 44.1% | 60.8% |
| 2023 | 21.5% | 70.6% | 40.4% | 59.6% |
| 2022 | 19.7% | 65.6% | 42.2% | 70.3% |
| 2021 | 17.3% | 72.9% | 45.1% | 86.2% |
| 2020 | 19.8% | 83% | 54.9% | 108.4% |
| 2019 | 17.4% | 59.8% | 44.4% | 79.6% |
| 2018 | 17.1% | 62.3% | 47.8% | 72.9% |
| 2017 | 18.1% | 62.9% | 47.6% | 66.9% |
| 2016 | 21.8% | 64.5% | 47.7% | 66.7% |
| 2015 | 22.3% | 44.7% | 46.9% | 69.5% |
| 2014 | 23.8% | 34.1% | 44.3% | 63.6% |
| 2013 | 34.7% | 31.1% | 46.3% | 59.2% |
| 2012 | 23.9% | 21.4% | 45.9% | 57.1% |
| 2011 | 22.1% | 21.4% | 45.7% | 49% |
| 2010 | 23.1% | 21.3% | 46.7% | 45.1% |
| 2009 | 22.6% | 26% | 51.5% | 43.9% |
| 2008 | 18.9% | 20.1% | 51.2% | 34.2% |
| 2007 | 19.4% | 39.2% | 43.9% | 31.8% |
| 2006 | 21.1% | 34.9% | 42.6% | 36.7% |
| 2005 | 20.8% | 41.7% | 38.2% | 38.6% |
| 2004 | 20.9% | 60.3% | 40% | 45.4% |
| 2003 | 21.2% | 70.2% | 43.3% | 48.6% |
| 2002 | 25.7% | 81.1% | 37.5% | 85.7% |
| 2001 | 27.8% | 81% | - | - |
| 2000 | 20.3% | 72.5% | - | - |
| 1999 | 25.5% | 73.1% | - | - |
| 1998 | 45.5% | 87.6% | - | - |
| 1997 | 29.7% | 57% | - | - |
| 1996 | 22.2% | 64.5% | - | - |
| 1995 | 25.1% | 73.4% | - | - |
| 1994 | 23.9% | 71.3% | - | - |
| 1993 | 26.9% | 90.1% | - | - |
| 1992 | 26.5% | 87.9% | - | - |
| 1991 | 25.1% | 89.3% | - | - |
| 1990 | 22.6% | 90% | - | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).
GeoRank.org/economy/gabon/montenegro | CC BY
In 2025, Gabon's government spending was $6.14B, accounting for 28.6% of its GDP, while Montenegro spent $4.05B, or 43.9% of GDP.
Debt-to-GDP ratio is 78.9% in Gabon and 67.1% in Montenegro, ranking 44/185 and 63/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Gabon
|
Montenegro
|
|
| 2025 | -8.47% | -3.61% |
| 2024 | -3.3% | -3.44% |
| 2023 | 1.79% | 0.38% |
| 2022 | -0.89% | -4.05% |
| 2021 | -1.93% | -1.37% |
| 2020 | -2.19% | -10.9% |
| 2019 | 2.13% | -1.74% |
| 2018 | -0.21% | -6.3% |
| 2017 | -1.7% | -6.89% |
| 2016 | -4.71% | -6.21% |
| 2015 | -1.12% | -6.03% |
| 2014 | 5.98% | -0.7% |
| 2013 | -3.07% | -4.54% |
| 2012 | 6.2% | -5.87% |
| 2011 | 1.41% | -6.79% |
| 2010 | 2.7% | -4.88% |
| 2009 | 6.77% | -6.74% |
| 2008 | 11% | -2.3% |
| 2007 | 8.06% | 8.44% |
| 2006 | 8.67% | 4.34% |
| 2005 | 7.98% | -1.42% |
| 2004 | 6.99% | -2.45% |
| 2003 | 7.75% | -4.06% |
| 2002 | 3.72% | -1.44% |
| 2001 | 4.07% | - |
| 2000 | 11.1% | - |
| 1999 | 1.11% | - |
| 1998 | -13.1% | - |
| 1997 | 1.41% | - |
| 1996 | 2.12% | - |
| 1995 | 2.64% | - |
| 1994 | -1.53% | - |
| 1993 | -5.35% | - |
| 1992 | -4.9% | - |
| 1991 | -2.03% | - |
| 1990 | -3.83% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).
GeoRank.org/economy/gabon/montenegro | CC BY
In 2025, Gabon's government deficit, the difference between spending and revenue, was $1.82B, equivalent to 8.47% of GDP. This compares to Montenegro's deficit of $334M, or 3.61% of GDP.
Over the past 24 years, Gabon recorded a fiscal deficit in 10 of those years, while Montenegro ran a deficit in 21 years. On average, Gabon posted an annual surplus equal to 2.23% of GDP, compared to deficit of 3.27% of GDP for Montenegro.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Gabon
|
Montenegro
|
|
| 2025 | 1.77% | 3.9% |
| 2024 | 1.17% | 3.3% |
| 2023 | 3.63% | 8.6% |
| 2022 | 4.23% | 13% |
| 2021 | 1.09% | 2.4% |
| 2020 | 1.35% | -0.3% |
| 2019 | 2.46% | 0.4% |
| 2018 | 4.75% | 2.6% |
| 2017 | 2.65% | 2.4% |
| 2016 | 2.11% | -0.3% |
| 2015 | -0.34% | 1.5% |
| 2014 | 4.69% | -0.7% |
| 2013 | 0.51% | 2.2% |
| 2012 | 2.65% | 4.1% |
| 2011 | 1.26% | 3.5% |
| 2010 | 1.46% | 0.4% |
| 2009 | 1.89% | 3.6% |
| 2008 | 5.26% | 9% |
| 2007 | 5.03% | 3.4% |
| 2006 | -1.41% | 2.1% |
| 2005 | 3.71% | 3.4% |
| 2004 | 0.41% | 3.1% |
| 2003 | 2.24% | 7.5% |
| 2002 | 0.04% | 19.7% |
| 2001 | 2.14% | 23.7% |
| 2000 | 0.5% | 29.9% |
| 1999 | -1.94% | - |
| 1998 | 1.45% | - |
| 1997 | 3.97% | - |
Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | World Economic Outlook (2000–2025, retrieved 2026-07-08).
GeoRank.org/economy/gabon/montenegro | CC BY
Over the past 26 years, Gabon has recorded an average annual inflation rate of 2.12%, compared with 5.86% in Montenegro. In 2025, inflation was 1.77% in Gabon and 3.9% in Montenegro.
Top exports between countries
|
Gabon
|
|
|---|---|
| Export category | Export value |
|
Montenegro
|
|
|---|---|
| Export category | Export value |
| Machinery & equipment | $21K |
| Chemicals & pharma | $3K |
| Textiles & consumer goods | $1K |
Balance of trade
|
Gabon
|
Montenegro
|
|
|---|---|---|
|
Current account balance
|
$141M
2015 |
-$1.88B
2025 |
| Current account balance ranking |
61/190
2015 |
140/190
2025 |
| Current account balance, % of GDP |
+0.98%
2015 |
-20.4%
2025 |
| Goods imports |
$3.17B
2015 |
$4.91B
2025 |
| Goods exports |
$5.11B
2015 |
$663M
2025 |
| Service imports |
$1.88B
2015 |
$1.24B
2025 |
| Service exports |
$277M
2015 |
$3.07B
2025 |
| Imports of goods and services, % of GDP |
29.4%
2025 |
65.7%
2025 |
| Exports of goods and services, % of GDP |
55.5%
2025 |
40.1%
2025 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Gabon
|
Montenegro
|
|
|---|---|---|
| Economic freedom | 56.6 | 63.8 |
| Economic freedom ranking | 120/197 | 78/197 |
| Property rights | 30 | 60.9 |
| Government integrity | 22.6 | 49.9 |
| Judicial effectiveness | 19.9 | 51.5 |
| Tax burden | 76.5 | 88.7 |
| Government spending | 85.5 | 47.6 |
| Fiscal health | 87.9 | 86.2 |
| Business freedom | 63.6 | 68.4 |
| Labor freedom | 55.4 | 59.4 |
| Monetary freedom | 80.9 | 75.2 |
| Trade freedom | 57.4 | 78.4 |
| Investment freedom | 60 | 50 |
| Financial freedom | 40 | 50 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Gabon
|
Montenegro
|
|
| 2026 | 56.6 | 63.8 |
| 2025 | 56.3 | 63.8 |
| 2024 | 56.9 | 59.7 |
| 2023 | 56.1 | 60.9 |
| 2022 | 55.8 | 57.8 |
| 2021 | 58.1 | 63.4 |
| 2020 | 56.7 | 61.5 |
| 2019 | 56.3 | 60.5 |
| 2018 | 58 | 64.3 |
| 2017 | 58.6 | 62 |
| 2016 | 59 | 64.9 |
| 2015 | 58.3 | 64.7 |
| 2014 | 57.8 | 63.6 |
| 2013 | 57.8 | 62.6 |
| 2012 | 56.4 | 62.5 |
| 2011 | 56.7 | 62.5 |
| 2010 | 55.4 | 63.6 |
| 2009 | 55 | 58.2 |
| 2008 | 54.2 | - |
| 2007 | 54.8 | - |
| 2006 | 56.1 | - |
| 2005 | 54.8 | - |
| 2004 | 57.1 | - |
| 2003 | 58.7 | 43.5 |
| 2002 | 58 | 46.6 |
| 2001 | 55 | - |
| 2000 | 58.2 | - |
| 1999 | 60.5 | - |
| 1998 | 59.2 | - |
| 1997 | 58.8 | - |
| 1996 | 55.7 | - |
| 1995 | 57.5 | - |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08).
GeoRank.org/economy/gabon/montenegro | CC BY
The Economic Freedom Index for Gabon is 56.6, ranking 120/197, compared to 63.8 for Montenegro, ranking 78/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Gabon
|
Montenegro
|
|
|---|---|---|
| Services, % of GDP |
42.3%
2025 |
63.4%
2025 |
| Industry, % of GDP |
47.2%
2025 |
11.3%
2025 |
| Agriculture, forestry, and fishing, % of GDP |
6.75%
2025 |
3.37%
2025 |
|
GNI, Atlas method
|
$21B
2025 |
$8.82B
2025 |
| GNI per capita, PPP |
$21,660
2025 |
$35,700
2025 |
| Total reserves including gold |
$639M
2024 |
$2.2B
2025 |
| Total reserves ranking |
150/177
2024 |
126/177
2025 |
|
Net foreign direct investment
|
-$25.3M
2015 |
-$601M
2025 |
|
Net inflows of foreign direct investment
|
$1.14B
2024 |
$599M
2024 |
|
Net outflows of foreign direct investment
|
-$33.8M
2019 |
$67.8M
2024 |
|
Servicing debt to the IMF, % of GNI
|
5.62%
2024 |
15%
2024 |
| Poverty at national poverty lines |
33.4%
2017 |
20%
2023 |
|
Gross capital formation, % of GDP
|
24.8%
2025 |
26.9%
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/gabon/montenegro | CC BY
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Data sources:
- World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
- The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08)
- U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
- TradeMap (2024, 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.