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Economy of Ireland vs Mauritius compared: GDP & Debt

Updated on by Georank team

Ireland has a GDP of $609B compared to $14.9B for Mauritius, ranking 25/197 and 143/197 by economy size, respectively.

Ireland has $250B in government debt (34.3% of GDP), compared to $13.6B (91.3% of GDP) in Mauritius.

The chart below compares the two countries' GDP growth in both current (nominal) and constant dollars, accounting for inflation over time.

Ireland
GDP, current $

GDP, constant 2015 $
Mauritius
GDP, current $

GDP, constant 2015 $
Year GDP
Ireland Mauritius
Current $ Constant $ Current $ Constant $
1960 $1,998,550,222 $24,110,313,424 $162,089,564 $968,988,710
1961 $2,151,772,980 $25,319,727,520 $191,757,729 $1,190,393,861
1962 $2,329,372,972 $26,134,122,485 $197,738,208 $1,199,994,232
1963 $2,505,073,358 $27,374,091,003 $253,839,558 $1,366,727,738
1964 $2,851,091,646 $28,410,463,564 $218,914,569 $1,272,567,126
1965 $3,035,655,794 $28,959,765,672 $230,024,161 $1,313,250,841
1966 $3,198,820,904 $29,218,403,167 $227,534,083 $1,266,391,365
1967 $3,445,739,915 $30,908,893,565 $238,439,291 $1,321,911,601
1968 $3,378,701,147 $33,457,000,744 $206,576,631 $1,230,836,442
1969 $3,902,721,632 $35,418,870,779 $221,553,613 $1,291,553,246
1970 $4,395,995,086 $36,361,200,213 $224,125,805 $1,286,356,771
1971 $5,098,250,287 $37,622,893,379 $251,437,338 $1,341,330,044
1972 $6,318,060,582 $40,064,546,829 $318,664,900 $1,453,282,307
1973 $7,481,173,066 $41,956,165,577 $404,285,775 $1,627,410,035
1974 $7,896,860,615 $43,743,594,856 $669,894,030 $1,770,814,578
1975 $9,483,808,362 $46,218,015,395 $673,311,287 $1,786,859,757
1976 $9,453,756,015 $46,862,667,362 $713,510,052 $2,211,282,621
1977 $11,248,340,431 $50,710,701,806 $834,722,972 $2,356,068,983
1978 $14,647,996,074 $54,355,141,813 $1,029,040,323 $2,446,325,417
1979 $18,319,334,300 $56,025,495,103 $1,227,446,632 $2,532,351,080
1980 $21,747,855,640 $57,750,704,523 $1,147,027,924 $2,277,564,692
1981 $20,670,190,138 $59,671,040,951 $1,157,769,444 $2,411,539,084
1982 $21,474,752,962 $61,033,610,334 $1,092,923,636 $2,544,103,219
1983 $20,766,047,764 $60,884,504,483 $1,104,956,573 $2,553,867,368
1984 $20,106,648,455 $63,535,642,712 $1,054,564,759 $2,673,857,908
1985 $21,270,013,326 $65,496,107,817 $1,090,611,325 $2,859,810,700
1986 $28,714,571,852 $65,215,568,204 $1,482,601,552 $3,138,414,411
1987 $33,920,518,493 $68,256,629,227 $1,906,174,438 $3,417,452,086
1988 $37,772,896,221 $71,817,859,763 $2,163,252,449 $3,649,543,107
1989 $39,238,392,678 $75,993,292,636 $2,211,312,823 $3,812,500,631
1990 $49,305,632,408 $82,427,285,856 $2,689,212,760 $4,086,495,015
1991 $49,787,501,584 $84,017,835,878 $2,895,354,736 $4,267,749,306
1992 $55,918,538,121 $86,826,782,446 $3,267,677,814 $4,545,694,954
1993 $52,417,477,614 $89,164,687,696 $3,307,302,126 $4,776,710,033
1994 $57,097,656,066 $94,296,853,731 $3,606,050,873 $4,974,281,585
1995 $69,139,823,232 $103,381,809,954 $4,094,741,652 $5,187,565,675
1996 $75,790,786,290 $111,010,999,493 $4,481,489,762 $5,477,438,749
1997 $82,856,648,758 $123,246,371,072 $4,243,755,308 $5,788,966,841
1998 $90,199,410,116 $134,050,299,131 $4,225,813,976 $6,140,469,444
1999 $98,893,958,263 $148,165,642,333 $4,402,193,195 $6,300,792,947
2000 $100,207,610,430 $162,098,435,202 $4,726,108,622 $6,817,633,871
2001 $109,346,669,230 $170,699,088,561 $4,675,755,867 $7,045,856,941
2002 $128,596,035,288 $180,769,250,950 $4,906,494,249 $7,159,641,800
2003 $164,670,771,260 $186,217,344,582 $5,894,873,920 $7,583,882,472
2004 $194,372,115,041 $198,858,038,462 $6,667,418,752 $7,912,266,089
2005 $211,876,989,656 $210,272,056,411 $6,576,108,447 $8,052,910,022
2006 $232,180,617,162 $220,760,118,842 $7,137,710,413 $8,444,727,952
2007 $270,079,279,420 $232,482,742,332 $8,277,442,915 $8,928,358,886
2008 $275,447,471,451 $222,058,051,544 $10,127,777,060 $9,409,326,235
2009 $236,443,115,854 $210,742,455,593 $9,264,513,545 $9,721,252,645
2010 $221,732,824,603 $214,289,191,597 $10,144,716,155 $10,146,771,629
2011 $240,975,871,047 $217,736,818,590 $11,677,718,382 $10,560,510,104
2012 $226,921,827,888 $216,854,920,424 $11,832,323,837 $10,929,718,038
2013 $242,924,245,719 $221,610,413,457 $12,434,596,541 $11,297,000,949
2014 $266,490,442,124 $242,410,308,909 $13,230,490,082 $11,729,333,766
2015 $302,101,388,556 $302,101,388,556 $12,162,211,503 $12,162,211,503
2016 $305,431,252,709 $305,795,232,417 $12,757,680,847 $12,631,973,063
2017 $348,355,212,569 $336,707,637,030 $13,896,938,315 $13,129,418,116
2018 $395,780,319,817 $362,595,940,329 $14,957,535,716 $13,655,479,839
2019 $407,211,793,801 $380,627,401,463 $14,645,235,205 $14,050,298,678
2020 $436,009,027,819 $407,856,325,068 $11,566,111,138 $12,006,466,621
2021 $530,394,123,830 $474,166,373,640 $11,622,048,697 $12,415,142,571
2022 $548,341,794,599 $509,781,668,506 $12,936,444,123 $13,494,399,202
2023 $567,372,737,459 $496,851,698,334 $14,072,212,290 $14,170,187,785
2024 $609,157,459,747 $509,767,195,342 $14,937,861,786 $14,868,086,969

Economic indicators

Ireland Mauritius
Gross domestic product
$609B
2024
$14.9B
2024
GDP rank
25/197
2024
143/197
2024
GDP growth
7.36%
2023-2024
6.15%
2023-2024
GDP per capita
$112,895
2024
$11,991
2024
GDP per capita rank
4/197
2024
78/197
2024
GDP per capita, PPP
$130,797
2024
$31,840
2024
Government debt
$250B
2024
$13.6B
2024
Debt-to-GDP ratio
34.3%
2026
91.3%
2026
Government debt per person
$46,415
2024
$10,955
2024
Government debt per person rank
11/185
2024
52/185
2024
Average annual personal income after taxes
$44,579
2026
$7,323
2026
Market capitalization of domestic companies
$110B
2018
$9.12B
2024
Number of billionaires
11
2025
n/a
Income share by richest 10%
24.1%
2023
29.9%
2017
Income share by poorest 10%
3.7%
2023
2.9%
2017
Government expenditure, % of GDP
24.2%
2026
30.8%
2026
Consumer prices inflation
2.11%
2023-2024
3.6%
2023-2024
Central bank interest rate n/a
4.5%
2025
Unemployment rate
4.27%
2024
5.57%
2023
Population
5500964
1239793

GDP per capita in Ireland vs Mauritius

Ireland's GDP per capita is $112,895, ranking 4/197, compared to $11,991 in Mauritius, ranking 78/197. Adjusted for purchasing power (GDP per capita PPP), Ireland ranks 4th at $130,797, while Mauritius ranks 71st at $31,840.

Ireland
GDP per capita

GDP per capita, PPP
Mauritius
GDP per capita

GDP per capita, PPP
Year Current $
Ireland Mauritius
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
1960 $707 - $238.3 -
1961 $762 - $281.7 -
1962 $821 - $282.3 -
1963 $878 - $353 -
1964 $995 - $297.3 -
1965 $1,055 - $305 -
1966 $1,107 - $296 -
1967 $1,187 - $304 -
1968 $1,159 - $258.7 -
1969 $1,331 - $272.7 -
1970 $1,487 - $271.3 -
1971 $1,704 - $299.6 -
1972 $2,080 - $374 -
1973 $2,424 - $467 -
1974 $2,517 - $763 -
1975 $2,973 - $755 -
1976 $2,920 - $787 -
1977 $3,427 - $906 -
1978 $4,400 - $1,102 -
1979 $5,430 - $1,292 -
1980 $6,372 - $1,187 -
1981 $5,986 - $1,181 -
1982 $6,161 - $1,101 -
1983 $5,915 - $1,103 -
1984 $5,692 - $1,042 -
1985 $6,012 - $1,069 -
1986 $8,112 - $1,442 -
1987 $9,582 - $1,840 -
1988 $10,716 - $2,074 -
1989 $11,176 - $2,103 -
1990 $14,031 $13,734 $2,540 $5,010
1991 $14,087 $14,389 $2,705 $5,351
1992 $15,714 $15,106 $3,013 $5,753
1993 $14,657 $15,801 $3,014 $6,116
1994 $15,903 $17,000 $3,240 $6,414
1995 $19,158 $18,932 $3,648 $6,771
1996 $20,836 $20,474 $3,952 $7,206
1997 $22,551 $22,632 $3,696 $7,651
1998 $24,295 $25,092 $3,642 $8,121
1999 $26,338 $27,041 $3,746 $8,344
2000 $26,335 $30,209 $3,982 $9,143
2001 $28,282 $32,577 $3,909 $9,586
2002 $32,705 $35,222 $4,073 $9,824
2003 $41,204 $36,285 $4,858 $10,535
2004 $47,754 $38,734 $5,461 $11,216
2005 $50,933 $40,466 $5,354 $11,703
2006 $54,329 $44,232 $5,784 $12,593
2007 $61,396 $46,784 $6,677 $13,612
2008 $61,353 $44,169 $8,141 $14,569
2009 $52,133 $41,470 $7,427 $15,105
2010 $48,624 $43,217 $8,113 $15,920
2011 $52,614 $45,526 $9,324 $16,884
2012 $49,336 $46,726 $9,422 $17,259
2013 $52,538 $48,839 $9,877 $18,435
2014 $57,215 $52,641 $10,490 $19,294
2015 $64,250 $71,607 $9,631 $20,270
2016 $64,130 $73,013 $10,095 $21,952
2017 $72,161 $80,450 $10,987 $22,898
2018 $80,804 $86,299 $11,819 $23,416
2019 $81,828 $92,023 $11,568 $24,375
2020 $86,514 $97,800 $9,136 $21,622
2021 $103,783 $116,904 $9,178 $23,010
2022 $105,191 $136,104 $10,247 $26,874
2023 $106,819 $124,808 $11,270 $29,561
2024 $112,895 $130,797 $11,991 $31,840

Spending and national debt comparison

In 2024, Ireland's government spending was $143B, accounting for 24.2% of its GDP, while Mauritius' spent $5.04B, or 30.8% of GDP.

Debt-to-GDP ratio is 34.3% in Ireland and 91.3% in Mauritius, ranking 150/185 and 28/185, respectively.

Ireland
Government spending

Government debt
Mauritius
Government spending

Government debt
Year % of GDP
Ireland Mauritius
Government spending Government debt Government spending Government debt
1960 29.1% 44.9% - -
1961 31.4% 44.3% - -
1962 31.7% 44.5% - -
1963 33.6% 45.2% - -
1964 34.8% 43.1% - -
1965 35.8% 44.6% - -
1966 36.9% 47.7% - -
1967 39.3% 47.1% - -
1968 40% 44.7% - -
1969 42.5% 42.6% - -
1970 44.1% 41.7% - -
1971 45.3% 39.8% - -
1972 41.5% 37.3% - -
1973 40.3% 35.1% - -
1974 44.3% 43.5% - -
1975 48.2% 48.3% - -
1976 47.8% 51.7% - -
1977 44.6% 49.2% - -
1978 46.2% 50.6% - -
1979 48.7% 63.5% - -
1980 53.7% 64.6% - -
1981 54.1% 68.8% - -
1982 56.7% 73.5% - -
1983 55.6% 86.1% - -
1984 52.7% 90.2% - -
1985 53.2% 93% - -
1986 52.9% 107.2% - -
1987 51.4% 108.3% - -
1988 48.2% 106.5% - -
1989 42.5% 97.9% - -
1990 44.6% 92.7% 30.2% -
1991 46.1% 93.8% 27.2% -
1992 46.8% 90.6% 26.8% -
1993 44.6% 93.4% 24.5% -
1994 44.2% 88% 27.5% -
1995 40.3% 78.5% 27.3% -
1996 38.5% 69.8% 27.4% -
1997 36.1% 61.6% 27.5% -
1998 34.2% 51.4% 26.6% -
1999 32.5% 46.6% 27.5% -
2000 30.6% 36.4% 22.2% 59.7%
2001 32.2% 33.6% 22.4% 60.5%
2002 32.9% 30.9% 23.3% 66.7%
2003 32.7% 29.8% 23.4% 70.8%
2004 32.8% 28.1% 22.6% 61.1%
2005 33% 26.1% 23% 61.7%
2006 33.6% 23.7% 22.2% 59.3%
2007 35.6% 23.9% 21.5% 51.6%
2008 41.6% 42.5% 22.7% 49.4%
2009 46.9% 61.8% 25.2% 58.4%
2010 64.9% 86.1% 24% 56.4%
2011 46.8% 109.4% 23.7% 56.5%
2012 42.2% 118.7% 22.5% 55.9%
2013 39.8% 117.5% 24.1% 58.2%
2014 36.5% 101.3% 23% 60.6%
2015 28% 74% 24.5% 65%
2016 27.5% 72.6% 24% 64.3%
2017 25.3% 65.2% 24.3% 63%
2018 24.8% 61.5% 24.3% 64.1%
2019 23.9% 55.9% 27.8% 74.6%
2020 26.7% 57% 32.6% 93.4%
2021 23.6% 52.6% 30.8% 93.8%
2022 20.6% 43.1% 29.3% 86.9%
2023 22.7% 43.3% 29.9% 85.6%
2024 23.4% 41.1% 33.7% 91.4%
2025 23.9% 36.7% 31.9% 93.2%
2026 24.2% 34.3% 30.8% 91.3%

Government deficit by year

In 2024, Ireland's government surplus, the difference between spending and revenue, was $26.7B, equivalent to 4.38% of GDP. This compares to Mauritius' deficit of -$1.06B, or -7.11% of GDP.

Over the past 25 years, Ireland recorded a fiscal deficit in 13 of those years, while Mauritius ran a deficit in 25 years. On average, Ireland posted an annual deficit equal to -2.98% of GDP, compared to deficit of -4.18% of GDP for Mauritius.

Deficit/surplus
Ireland

Mauritius
Year Deficit/surplus, % of GDP
Ireland Mauritius
1926 -1.95% -
1927 -1.95% -
1928 -1.95% -
1929 -3.41% -
1930 -3.41% -
1931 -1.63% -
1932 -1.63% -
1933 2.97% -
1934 2.97% -
1935 2.97% -
1936 -0.19% -
1937 -0.77% -
1938 -0.92% -
1939 -7.31% -
1940 -0.15% -
1941 -1.42% -
1942 -2.48% -
1943 -1.18% -
1944 0.39% -
1945 -0.43% -
1946 -0.43% -
1947 -1.8% -
1948 -1.29% -
1949 -2.17% -
1950 -5.21% -
1951 -4.62% -
1952 -7.84% -
1953 -5.77% -
1954 -5.28% -
1955 -5.06% -
1956 -3.23% -
1957 -5.19% -
1958 -4.3% -
1959 -2.16% -
1960 -1.97% -
1961 -2.6% -
1962 -2.91% -
1963 -2.92% -
1964 -3.35% -
1965 -3.5% -
1966 -2.26% -
1967 -2.69% -
1968 -2.72% -
1969 -3.4% -
1970 -3.64% -
1971 -3.5% -
1972 -3.23% -
1973 -3.84% -
1974 -6.96% -
1975 -11.1% -
1976 -7.34% -
1977 -6.44% -
1978 -8.27% -
1979 -10% -
1980 -11.1% -
1981 -12.1% -
1982 -13.1% -
1983 -11.5% -
1984 -9.43% -
1985 -10.7% -
1986 -10.5% -
1987 -8.47% -
1988 -4.62% -
1989 -2.64% -
1990 -2.69% -
1991 -2.8% -
1992 -2.84% -
1993 -2.62% -
1994 -1.82% -
1995 -2.07% -
1996 -0.2% -
1997 1.37% -
1998 2.07% -
1999 3.54% -
2000 4.86% -4.4%
2001 0.96% -5.53%
2002 -0.52% -5.18%
2003 0.35% -4.82%
2004 1.3% -4.34%
2005 1.57% -4.44%
2006 2.78% -4.14%
2007 0.27% -3.09%
2008 -7.03% -2.66%
2009 -13.9% -3.41%
2010 -32.1% -3.07%
2011 -13.5% -3.09%
2012 -8.4% -1.78%
2013 -6.27% -3.4%
2014 -3.51% -3.13%
2015 -1.97% -3.59%
2016 -0.76% -2.81%
2017 -0.3% -1.66%
2018 0.09% -2.19%
2019 0.41% -7.53%
2020 -4.88% -10.6%
2021 -1.4% -4.44%
2022 1.65% -3.31%
2023 1.48% -4.71%
2024 4.38% -7.11%
2025 1.69% -3.75%
2026 1.6% -2.43%

Inflation comparison by year

Over the past 28 years, Ireland has recorded an average annual inflation rate of 2.18%, compared with 4.92% in Mauritius. In 2024, inflation was 2.11% in Ireland and 3.6% in Mauritius.

Inflation
Ireland

Mauritius
Year Inflation
Ireland Mauritius
1997 1.54% 6.83%
1998 2.41% 6.81%
1999 1.63% 6.91%
2000 5.58% 4.2%
2001 4.85% 5.39%
2002 4.63% 6.42%
2003 3.49% 3.92%
2004 2.18% 4.71%
2005 2.46% 4.94%
2006 3.94% 8.91%
2007 4.89% 8.83%
2008 4.04% 9.73%
2009 -4.45% 2.52%
2010 -0.92% 2.93%
2011 2.55% 6.52%
2012 1.69% 3.85%
2013 0.52% 3.54%
2014 0.19% 3.22%
2015 -0.33% 1.29%
2016 0.02% 0.98%
2017 0.36% 3.67%
2018 0.47% 3.22%
2019 0.94% 0.41%
2020 -0.33% 2.58%
2021 2.34% 4.03%
2022 7.83% 10.8%
2023 6.3% 7.05%
2024 2.11% 3.6%

Top exports between countries

Ireland
Export category Export value
Chemicals & pharma $3.57M
Machinery & equipment $2.18M
Animal & marine products $1.24M
Processed food, beverages & tobacco $408K
Miscellaneous $184K
Textiles & consumer goods $174K
Metals $35K
Raw materials & minerals $29K
Wood & paper products $29K
Precious metals & jewellery $10K
Mauritius
Export category Export value
Processed food, beverages & tobacco $3.63M
Textiles & consumer goods $2.84M
Machinery & equipment $187K
Precious metals & jewellery $19K
Metals $18K
Chemicals & pharma $11K
Raw materials & minerals $3K
Wood & paper products $2K
Miscellaneous $1K

Balance of trade

Ireland Mauritius
Current account balance
$106B
2024
-$1.05B
2024
Current account balance ranking
6/190
2024
126/190
2024
Current account balance, % of GDP
+17.4%
2024
-7.03%
2024
Goods imports
$165B
2024
$6.35B
2024
Goods exports
$356B
2024
$2.37B
2024
Service imports
$467B
2024
$2.28B
2024
Service exports
$526B
2024
$4.19B
2024
Imports of goods and services, % of GDP
102.2%
2024
78.3%
2024
Exports of goods and services, % of GDP
144%
2024
67.1%
2024

Economic freedom indices

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

Ireland Mauritius
Economic freedom 83.1 75
Economic freedom ranking 3/197 18/197
Property rights 94.1 86.4
Government integrity 84 53.2
Judicial effectiveness 95.5 81
Tax burden 77.6 89.8
Government spending 85.1 77.1
Fiscal health 95.8 64.9
Business freedom 88.1 82.9
Labor freedom 62.4 69.3
Monetary freedom 75 67.4
Trade freedom 79.6 87.4
Investment freedom 90 70
Financial freedom 70 70

Economic freedom by year comparison

The Economic Freedom Index for Ireland is 83.1, ranking 3/197, compared to 75 for Mauritius, ranking 18/197. The chart below displays a comparison of annual changes in economic freedom indexes.

Ireland
Mauritius
Year Economic freedom index
Ireland Mauritius
1995 68.5 -
1996 68.5 -
1997 72.6 -
1998 73.7 -
1999 74.6 68.5
2000 76.1 67.2
2001 81.2 66.4
2002 80.5 67.7
2003 80.9 64.4
2004 80.3 64.3
2005 80.8 67.2
2006 82.2 67.4
2007 82.6 69.4
2008 82.5 72.6
2009 82.2 74.3
2010 81.3 76.3
2011 78.7 76.2
2012 76.9 77
2013 75.7 76.9
2014 76.2 76.5
2015 76.6 76.4
2016 77.3 74.7
2017 76.7 74.7
2018 80.4 75.1
2019 80.5 73
2020 80.9 74.9
2021 81.4 77
2022 82 70.9
2023 82 70.6
2024 82.6 71.5
2025 83.1 75

More economic indicators

Ireland Mauritius
Services, % of GDP
60.6%
2024
64.4%
2024
Industry, % of GDP
33.6%
2024
17.8%
2024
Agriculture, forestry, and fishing, % of GDP
1.02%
2024
4.23%
2024
GNI, Atlas method
$435B
2024
$16.2B
2024
GNI per capita, PPP
$99,180
2024
$35,100
2024
Total reserves including gold
$12.7B
2024
$8.51B
2024
Total reserves ranking
73/177
2024
83/177
2024
Net foreign direct investment
$62.3B
2024
$963M
2024
Net inflows of foreign direct investment
$4.82B
2024
$681M
2024
Net outflows of foreign direct investment
$67.1B
2024
$38.3M
2024
Servicing debt to the IMF, % of GNI
n/a
10.1%
2024
Poverty at national poverty lines
14%
2021
8.4%
2023
Gross capital formation, % of GDP
18.2%
2024
21.2%
2024

GDP per capita map

GDP per capita

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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.