Georgia has a GDP of $34.2B compared to $49.7B for Sudan, ranking 107/197 and 94/197 by economy size, respectively.
Georgia has $12.3B in government debt (36.1% of GDP), compared to $130B (261.4% of GDP) in Sudan.
Georgia vs Sudan GDP by year
| Year | GDP, current $ | |
|---|---|---|
Georgia
|
Sudan
|
|
| 2024 | $34,189,423,545 | $49,672,435,513 |
| 2023 | $30,777,833,601 | $39,898,289,821 |
| 2022 | $24,984,568,960 | $51,666,875,363 |
| 2021 | $18,853,115,589 | $34,229,513,775 |
| 2020 | $16,010,869,216 | $27,034,593,750 |
| 2019 | $17,638,337,117 | $32,338,079,165 |
| 2018 | $17,902,544,881 | $32,333,780,383 |
| 2017 | $16,473,125,375 | $41,283,617,976 |
| 2016 | $15,444,548,902 | $42,630,376,000 |
| 2015 | $15,223,796,149 | $51,726,758,677 |
| 2014 | $17,966,015,109 | $49,516,748,618 |
| 2013 | $17,517,660,144 | $43,024,018,082 |
| 2012 | $16,894,392,033 | $37,632,919,967 |
| 2011 | $15,475,290,469 | $55,018,567,211 |
| 2010 | $12,426,907,967 | $58,962,978,034 |
| 2009 | $10,766,920,066 | $51,621,044,077 |
| 2008 | $12,795,145,131 | $64,833,083,257 |
| 2007 | $10,172,931,089 | $59,440,139,775 |
| 2006 | $7,745,250,734 | $45,263,831,634 |
| 2005 | $6,410,912,050 | $35,182,711,988 |
| 2004 | $5,125,365,192 | $26,646,007,251 |
| 2003 | $3,991,377,904 | $21,355,298,460 |
| 2002 | $3,395,766,678 | $18,137,128,388 |
| 2001 | $3,219,462,262 | $15,716,361,792 |
| 2000 | $3,057,475,335 | $12,257,299,147 |
| 1999 | $2,800,025,883 | $10,682,028,340 |
| 1998 | $3,613,497,317 | $11,250,221,537 |
| 1997 | $3,510,520,231 | $11,681,175,864 |
| 1996 | $3,094,936,177 | $9,018,300,725 |
| 1995 | $2,693,732,612 | $13,830,363,900 |
| 1994 | $2,513,867,645 | $12,793,794,737 |
| 1993 | $2,701,181,331 | $8,881,005,436 |
| 1992 | $3,690,328,964 | $7,031,933,492 |
| 1991 | $6,324,503,311 | $44,171,194,366 |
| 1990 | $7,735,927,264 | $33,641,222,222 |
| 1989 | $8,902,632,715 | $21,408,111,111 |
| 1988 | $8,833,588,173 | $14,372,555,556 |
| 1987 | $7,321,981,334 | $12,093,333,333 |
| 1986 | - | $10,092,200,000 |
| 1985 | - | $8,075,259,600 |
| 1984 | - | $10,447,615,385 |
| 1983 | - | $8,230,153,846 |
| 1982 | - | $8,732,542,274 |
| 1981 | - | $10,753,888,154 |
| 1980 | - | $8,951,800,000 |
| 1979 | - | $8,418,407,787 |
| 1978 | - | $8,128,719,315 |
| 1977 | - | $7,499,005,639 |
| 1976 | - | $6,013,210,816 |
| 1975 | - | $4,823,090,192 |
| 1974 | - | $3,958,931,660 |
| 1973 | - | $3,077,254,460 |
| 1972 | - | $2,483,055,722 |
| 1971 | - | $2,288,340,041 |
| 1970 | - | $2,100,229,759 |
| 1969 | - | $1,847,501,441 |
| 1968 | - | $1,677,771,401 |
| 1967 | - | $1,607,409,539 |
| 1966 | - | $1,484,491,676 |
| 1965 | - | $1,446,869,619 |
| 1964 | - | $1,388,282,600 |
| 1963 | - | $1,351,234,926 |
| 1962 | - | $1,328,259,625 |
| 1961 | - | $1,222,860,429 |
| 1960 | - | $1,126,364,162 |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/georgia/sudan | CC BY 
GDP per capita in Georgia vs Sudan by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Georgia
|
Sudan
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2024 | $9,241 | $28,285 | $985 | $2,116 |
| 2023 | $8,284 | $25,072 | $797 | $2,421 |
| 2022 | $6,730 | $22,461 | $1,046 | $3,355 |
| 2021 | $5,084 | $18,916 | $712 | $3,249 |
| 2020 | $4,301 | $16,791 | $578 | $3,349 |
| 2019 | $4,741 | $16,770 | $710 | $3,914 |
| 2018 | $4,804 | $15,022 | $731 | $4,199 |
| 2017 | $4,419 | $13,719 | $967 | $4,252 |
| 2016 | $4,143 | $13,065 | $1,033 | $4,470 |
| 2015 | $4,087 | $12,270 | $1,292 | $4,217 |
| 2014 | $4,830 | $11,771 | $1,275 | $4,261 |
| 2013 | $4,712 | $10,797 | $1,139 | $3,725 |
| 2012 | $4,531 | $10,060 | $1,019 | $3,710 |
| 2011 | $4,120 | $8,564 | $1,522 | $4,112 |
| 2010 | $3,282 | $7,712 | $1,665 | $3,806 |
| 2009 | $2,823 | $7,119 | $1,493 | $3,732 |
| 2008 | $3,325 | $7,279 | $1,928 | $3,938 |
| 2007 | $2,635 | $6,951 | $1,814 | $3,836 |
| 2006 | $1,996 | $5,980 | $1,415 | $3,637 |
| 2005 | $1,643 | $5,272 | $1,125 | $3,407 |
| 2004 | $1,305 | $4,635 | $872 | $3,215 |
| 2003 | $1,010 | $4,240 | $714 | $3,058 |
| 2002 | $854 | $3,719 | $621 | $2,898 |
| 2001 | $802 | $3,441 | $551 | $2,769 |
| 2000 | $750 | $3,161 | $441 | $2,616 |
| 1999 | $674 | $2,977 | $394 | $2,475 |
| 1998 | $852 | $2,795 | $425 | $2,428 |
| 1997 | $807 | $2,616 | $453 | $2,358 |
| 1996 | $689 | $2,253 | $357 | $2,006 |
| 1995 | $578 | $1,919 | $561 | $1,902 |
| 1994 | $520 | $1,764 | $532 | $1,805 |
| 1993 | $550 | $1,898 | $379 | $1,794 |
| 1992 | $757 | $2,643 | $307 | $1,710 |
| 1991 | $1,308 | $4,727 | $1,966 | $1,599 |
| 1990 | $1,611 | $5,836 | $1,528 | $1,468 |
| 1989 | $1,853 | - | $992 | - |
| 1988 | $1,844 | - | $680 | - |
| 1987 | $1,544 | - | $584 | - |
| 1986 | - | - | $497 | - |
| 1985 | - | - | $406 | - |
| 1984 | - | - | $534 | - |
| 1983 | - | - | $431 | - |
| 1982 | - | - | $472 | - |
| 1981 | - | - | $605 | - |
| 1980 | - | - | $525 | - |
| 1979 | - | - | $515 | - |
| 1978 | - | - | $518 | - |
| 1977 | - | - | $497 | - |
| 1976 | - | - | $413 | - |
| 1975 | - | - | $343 | - |
| 1974 | - | - | $291.5 | - |
| 1973 | - | - | $235.8 | - |
| 1972 | - | - | $198.2 | - |
| 1971 | - | - | $189 | - |
| 1970 | - | - | $179.6 | - |
| 1969 | - | - | $163.5 | - |
| 1968 | - | - | $153.7 | - |
| 1967 | - | - | $152.4 | - |
| 1966 | - | - | $145.6 | - |
| 1965 | - | - | $146.8 | - |
| 1964 | - | - | $145.7 | - |
| 1963 | - | - | $146.6 | - |
| 1962 | - | - | $148.9 | - |
| 1961 | - | - | $141.6 | - |
| 1960 | - | - | $134.7 | - |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/georgia/sudan | CC BY
Georgia's GDP per capita is $9,241, ranking 89/197, compared to $985 in Sudan, ranking 179/197. Adjusted for purchasing power (GDP per capita PPP), Georgia ranks 74th at $28,285, while Sudan ranks 185th at $2,116.
Economic indicators
|
Georgia
|
Sudan
|
|
|---|---|---|
| Gross domestic product |
$34.2B
2024 |
$49.7B
2024 |
| GDP rank |
107/197
2024 |
94/197
2024 |
| GDP growth |
9.68%
2023-2024 |
-14%
2023-2024 |
| GDP per capita |
$9,241
2024 |
$985
2024 |
| GDP per capita rank |
89/197
2024 |
179/197
2024 |
| GDP per capita, PPP |
$28,285
2024 |
$2,116
2024 |
| GDP per capita PPP rank |
74/197
2024 |
185/197
2024 |
| Government debt |
$12.3B
2024 |
$130B
2024 |
| Debt-to-GDP ratio |
36.1%
2024 |
261.4%
2024 |
| Government debt per person |
$3,336
2024 |
$2,574
2024 |
| Government debt per person rank |
96/185
2024 |
109/185
2024 |
| Average annual personal income after taxes |
$6,891
2026 |
$1,704
2026 |
| Number of billionaires |
2
2025 |
n/a |
| Income share by richest 10% |
26.2%
2024 |
27.8%
2014 |
| Income share by poorest 10% |
2.9%
2024 |
3.2%
2014 |
| Government expenditure, % of GDP |
30.3%
2024 |
6.39%
2024 |
| Consumer prices inflation |
1.11%
2023-2024 |
138.8%
2021-2022 |
| Central bank interest rate |
8%
2024 |
n/a |
| Unemployment rate |
8.01%
2024 |
7.53%
2022 |
| Population |
3697615
|
53335233
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Georgia
|
Sudan
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2024 | 30.3% | 36.1% | 6.39% | 261.4% |
| 2023 | 29.7% | 38.9% | 8.23% | 259.9% |
| 2022 | 28.5% | 39.2% | 17.9% | 186.9% |
| 2021 | 31.2% | 49.1% | 9.84% | 189.6% |
| 2020 | 34.1% | 59.6% | 10.9% | 278.3% |
| 2019 | 28.7% | 40% | 18.7% | 216.5% |
| 2018 | 26.7% | 38.2% | 16.8% | 209.8% |
| 2017 | 27.2% | 38.9% | 12.8% | 149.5% |
| 2016 | 27.8% | 39.5% | 9.98% | 109.9% |
| 2015 | 27% | 36% | 12.4% | 93.2% |
| 2014 | 27.5% | 30.3% | 13.5% | 84.4% |
| 2013 | 26.6% | 28.9% | 15.3% | 105.8% |
| 2012 | 27.7% | 28.1% | 16.5% | 117.7% |
| 2011 | 27.1% | 27.7% | 18.2% | 78.1% |
| 2010 | 31% | 31.4% | 17.4% | 74.6% |
| 2009 | 34.8% | 33.6% | 18.8% | 71% |
| 2008 | 31.8% | 26.3% | 19.7% | 55.8% |
| 2007 | 27.7% | 22.5% | 19.6% | 53.7% |
| 2006 | 22.7% | 28.3% | 18.8% | 63.7% |
| 2005 | 21.6% | 35.3% | 19.7% | 75.5% |
| 2004 | 18.9% | 44.3% | 16.5% | 97.8% |
| 2003 | 16.1% | 54.6% | 12.5% | 117.4% |
| 2002 | 16% | 50.3% | 10.5% | 121.7% |
| 2001 | 16.8% | 53% | 9.87% | 125.6% |
| 2000 | 16.9% | 58.5% | 10.4% | 143.2% |
| 1999 | 19.8% | 76.5% | 8.4% | 160.5% |
| 1998 | 18.9% | 80% | 7.79% | 179.7% |
| 1997 | 21.9% | 48.2% | 7.38% | 167.7% |
| 1996 | 18.4% | 38.9% | 9.31% | 220.9% |
| 1995 | 15.6% | 19.8% | 12.9% | 239% |
| 1994 | - | - | 19.6% | 386% |
| 1993 | - | - | 23.7% | 285.9% |
| 1992 | - | - | 50.4% | 495% |
| 1991 | - | - | 45.7% | - |
| 1990 | - | - | 31% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20); International Monetary Fund (IMF) | Public Finances in Modern History (1995–1999, retrieved 2026-02-20).
GeoRank.org/economy/georgia/sudan | CC BY
In 2024, Georgia's government spending was $10.3B, accounting for 30.3% of its GDP, while Sudan spent $3.17B, or 6.39% of GDP.
Debt-to-GDP ratio is 36.1% in Georgia and 261.4% in Sudan, ranking 144/185 and 1/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Georgia
|
Sudan
|
|
| 2024 | -2.3% | -3.46% |
| 2023 | -2.33% | -3.7% |
| 2022 | -2.2% | -2.15% |
| 2021 | -5.97% | -0.29% |
| 2020 | -9.16% | -6.03% |
| 2019 | -1.82% | -10.8% |
| 2018 | -0.8% | -7.92% |
| 2017 | -0.45% | -6.07% |
| 2016 | -1.49% | -3.92% |
| 2015 | -1.16% | -3.87% |
| 2014 | -1.78% | -4.72% |
| 2013 | -1.25% | -5.76% |
| 2012 | -0.71% | -7.37% |
| 2011 | -0.81% | -2.33% |
| 2010 | -4.48% | 0.11% |
| 2009 | -6.36% | -3.8% |
| 2008 | -1.92% | 0.49% |
| 2007 | 0.81% | -2.84% |
| 2006 | 3.28% | -1.32% |
| 2005 | 2.14% | -1.88% |
| 2004 | 3.59% | 0.16% |
| 2003 | -0.55% | 0.77% |
| 2002 | -0.19% | -0.69% |
| 2001 | -0.71% | -0.77% |
| 2000 | -1.92% | -0.7% |
| 1999 | -4.72% | -0.8% |
| 1998 | -4% | -0.56% |
| 1997 | -6.79% | -0.59% |
| 1996 | -5.91% | -2.61% |
| 1995 | -4.89% | -3.48% |
| 1994 | - | -3.03% |
| 1993 | - | -8.04% |
| 1992 | - | -24.5% |
| 1991 | - | -26.5% |
| 1990 | - | -16.2% |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20).
GeoRank.org/economy/georgia/sudan | CC BY
In 2024, Georgia's government deficit, the difference between spending and revenue, was $785M, equivalent to 2.3% of GDP. This compares to Sudan's deficit of $1.72B, or 3.46% of GDP.
Over the past 30 years, Georgia recorded a fiscal deficit in 26 of those years, while Sudan ran a deficit in 26 years. On average, Georgia posted an annual deficit equal to 2.16% of GDP, compared to deficit of 2.9% of GDP for Sudan.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Georgia
|
Sudan
|
|
| 2024 | 1.11% | - |
| 2023 | 2.49% | - |
| 2022 | 11.9% | 138.8% |
| 2021 | 9.57% | 359% |
| 2020 | 5.2% | 163.3% |
| 2019 | 4.85% | 51% |
| 2018 | 2.62% | 63.3% |
| 2017 | 6.04% | 32.4% |
| 2016 | 2.13% | 17.8% |
| 2015 | 4% | 16.9% |
| 2014 | 3.07% | 36.9% |
| 2013 | -0.51% | 36.5% |
| 2012 | -0.94% | 35.6% |
| 2011 | 8.54% | 18.1% |
| 2010 | 7.11% | 13% |
| 2009 | 1.73% | 11.3% |
| 2008 | 10% | 14.3% |
| 2007 | 9.24% | 14.8% |
| 2006 | 9.16% | 7.2% |
| 2005 | 8.25% | 8.51% |
| 2004 | 5.66% | 9.66% |
| 2003 | 0.84% | 6.49% |
| 2002 | 5.59% | 22.2% |
| 2001 | 4.65% | 1.94% |
| 2000 | 4.06% | 7.12% |
| 1999 | 19.2% | 17.2% |
| 1998 | 3.57% | 24.6% |
| 1997 | 7.09% | 47.2% |
Data sources: World Bank | Economy & Growth (1997–2024, retrieved 2026-04-06).
GeoRank.org/economy/georgia/sudan | CC BY
Over the past 26 years, Georgia has recorded an average annual inflation rate of 5.87%, compared with 45.2% in Sudan. In 2022, inflation was 1.11% in Georgia and 138.8% in Sudan.
Top exports between countries
Balance of trade
|
Georgia
|
Sudan
|
|
|---|---|---|
|
Current account balance
|
-$1.79B
2024 |
-$4.44B
2022 |
| Current account balance ranking |
139/190
2024 |
165/190
2022 |
| Current account balance, % of GDP |
-5.22%
2024 |
-8.6%
2022 |
| Goods imports |
$15.2B
2024 |
$9.99B
2022 |
| Goods exports |
$8.63B
2024 |
$4.36B
2022 |
| Service imports |
$3.81B
2024 |
$1.59B
2022 |
| Service exports |
$7.71B
2024 |
$1.55B
2022 |
| Imports of goods and services, % of GDP |
55.6%
2024 |
1.27%
2024 |
| Exports of goods and services, % of GDP |
47.8%
2024 |
0.72%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Georgia
|
Sudan
|
|
|---|---|---|
| Economic freedom | 69.6 | 32.5 |
| Economic freedom ranking | 41/197 | 191/197 |
| Property rights | 53 | 6.5 |
| Government integrity | 59.9 | 13.8 |
| Judicial effectiveness | 53.8 | 2.4 |
| Tax burden | 87.8 | 84.7 |
| Government spending | 73.9 | 96.5 |
| Fiscal health | 89.1 | 64.6 |
| Business freedom | 76.6 | 27.3 |
| Labor freedom | 64 | 33.6 |
| Monetary freedom | 70.2 | 6.2 |
| Trade freedom | 86.8 | 29.6 |
| Investment freedom | 60 | 5 |
| Financial freedom | 60 | 20 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Georgia
|
Sudan
|
|
| 2026 | 69.6 | 32.5 |
| 2025 | 69 | 35.3 |
| 2024 | 68.4 | 33.9 |
| 2023 | 68.7 | 32.8 |
| 2022 | 71.8 | 32 |
| 2021 | 77.2 | 39.1 |
| 2020 | 77.1 | 45 |
| 2019 | 75.9 | 47.7 |
| 2018 | 76.2 | 49.4 |
| 2017 | 76 | 48.8 |
| 2016 | 72.6 | - |
| 2015 | 73 | - |
| 2014 | 72.6 | - |
| 2013 | 72.2 | - |
| 2012 | 69.4 | - |
| 2011 | 70.4 | - |
| 2010 | 70.4 | - |
| 2009 | 69.8 | - |
| 2008 | 69.2 | - |
| 2007 | 69.3 | - |
| 2006 | 64.5 | - |
| 2005 | 57.1 | - |
| 2004 | 58.9 | - |
| 2003 | 58.6 | - |
| 2002 | 56.7 | - |
| 2001 | 58.3 | - |
| 2000 | 54.3 | 47.2 |
| 1999 | 52.5 | 39.6 |
| 1998 | 47.9 | 38.3 |
| 1997 | 46.5 | 39.9 |
| 1996 | 44.1 | 39.2 |
| 1995 | - | 39.4 |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09).
GeoRank.org/economy/georgia/sudan | CC BY
The Economic Freedom Index for Georgia is 69.6, ranking 41/197, compared to 32.5 for Sudan, ranking 191/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Georgia
|
Sudan
|
|
|---|---|---|
| Services, % of GDP |
62%
2024 |
54.7%
2024 |
| Industry, % of GDP |
19.6%
2024 |
23.2%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
5.49%
2024 |
22.2%
2024 |
|
GNI, Atlas method
|
$30B
2024 |
$35.8B
2024 |
| GNI per capita, PPP |
$26,200
2024 |
$2,050
2024 |
| Total reserves including gold |
$4.45B
2024 |
$178M
2017 |
| Total reserves ranking |
104/177
2024 |
171/177
2017 |
|
Net foreign direct investment
|
-$1.14B
2024 |
-$574M
2022 |
|
Net inflows of foreign direct investment
|
$1.6B
2024 |
$548M
2023 |
|
Net outflows of foreign direct investment
|
$462M
2024 |
$0
2024 |
|
Servicing debt to the IMF, % of GNI
|
15.2%
2024 |
0.42%
2024 |
| Poverty at national poverty lines |
9.4%
2024 |
46.5%
2020 |
|
Gross capital formation, % of GDP
|
24.5%
2024 |
2.89%
2024 |
GDP per capita map
Data sources: World Bank | Economy & Growth (1985–2024, retrieved 2026-04-06); U.S. Census Bureau (1985–2024, retrieved 2026-02-08).
GeoRank.org/economy/georgia/sudan | CC BY
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Data sources:
- World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06)
- International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20)
- The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09)
- U.S. Census Bureau (1985–2024, retrieved 2026-02-08)
- TradeMap (2018–2024, retrieved 2026-02-08)
- International Monetary Fund (IMF) | Public Finances in Modern History (1995–1999, retrieved 2026-02-20)
- United Nations | World Population Prospects (2026, retrieved 2026-03-10)
- LivingCost (2026, retrieved 2025-10-14)
- Central Intelligence Agency (CIA) (2020, retrieved 2026-02-20)
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.