Kiribati has a GDP of $349M compared to $51.2B for Zimbabwe, ranking 192/197 and 95/197 by economy size, respectively.
Kiribati has $27.8M in government debt (7.95% of GDP), compared to $22.4B (43.8% of GDP) in Zimbabwe.
Kiribati vs Zimbabwe GDP by year
| Year | GDP, current $ | |
|---|---|---|
Kiribati
|
Zimbabwe
|
|
| 2025 | $349,227,254 | $51,215,643,906 |
| 2024 | $343,153,235 | $41,521,975,830 |
| 2023 | $291,657,338 | $35,871,781,303 |
| 2022 | $271,214,375 | $40,757,585,309 |
| 2021 | $285,451,584 | $41,287,852,524 |
| 2020 | $220,909,307 | $31,979,753,645 |
| 2019 | $216,891,541 | $33,360,632,553 |
| 2018 | $233,859,230 | $34,141,666,667 |
| 2017 | $223,029,865 | $51,035,657,371 |
| 2016 | $206,467,819 | $20,559,250,000 |
| 2015 | $191,559,399 | $19,973,250,000 |
| 2014 | $200,287,282 | $19,505,500,000 |
| 2013 | $201,730,861 | $19,100,750,000 |
| 2012 | $207,001,546 | $17,123,500,000 |
| 2011 | $195,970,140 | $14,109,000,000 |
| 2010 | $165,458,433 | $12,047,750,000 |
| 2009 | $140,177,384 | $9,670,750,000 |
| 2008 | $147,017,895 | $4,418,000,000 |
| 2007 | $138,054,946 | $5,294,750,000 |
| 2006 | $112,338,353 | $5,446,750,000 |
| 2005 | $113,895,437 | $5,758,250,000 |
| 2004 | $104,085,892 | $5,808,500,000 |
| 2003 | $96,105,619 | $5,730,500,000 |
| 2002 | $74,743,869 | $6,345,250,000 |
| 2001 | $64,935,850 | $6,780,750,000 |
| 2000 | $74,910,527 | $6,693,250,000 |
| 1999 | $77,323,978 | $6,861,500,000 |
| 1998 | $74,905,706 | $6,405,250,000 |
| 1997 | $80,205,807 | $8,534,000,000 |
| 1996 | $81,456,854 | $8,557,500,000 |
| 1995 | $68,596,395 | $7,115,000,000 |
| 1994 | $67,055,334 | $6,894,250,000 |
| 1993 | $58,953,596 | $6,567,250,000 |
| 1992 | $61,491,369 | $6,755,000,000 |
| 1991 | $41,247,792 | $8,646,000,000 |
| 1990 | $36,534,295 | $8,788,301,546 |
| 1989 | $37,645,319 | $8,290,553,535 |
| 1988 | $38,278,810 | $7,818,774,177 |
| 1987 | $29,554,413 | $6,744,657,033 |
| 1986 | $25,993,009 | $6,220,698,247 |
| 1985 | $26,126,615 | $5,640,137,575 |
| 1984 | $34,394,167 | $6,355,369,172 |
| 1983 | $31,000,546 | $7,768,031,182 |
| 1982 | $32,742,713 | $8,544,060,905 |
| 1981 | $35,267,489 | $8,015,464,252 |
| 1980 | $33,157,723 | $6,682,278,300 |
| 1979 | $34,466,197 | $5,180,102,910 |
| 1978 | $36,563,965 | $4,353,822,343 |
| 1977 | $31,335,459 | $4,366,610,469 |
| 1976 | $33,246,817 | $4,320,576,877 |
| 1975 | $44,547,454 | $4,373,532,601 |
| 1974 | $69,256,489 | $3,984,194,614 |
| 1973 | $25,645,040 | $3,311,043,292 |
| 1972 | $15,314,346 | $2,679,096,597 |
| 1971 | $12,356,134 | $2,179,828,710 |
| 1970 | $11,560,877 | $1,885,168,339 |
| 1969 | - | $1,748,891,294 |
| 1968 | - | $1,480,355,355 |
| 1967 | - | $1,397,715,282 |
| 1966 | - | $1,282,403,936 |
| 1965 | - | $1,312,105,394 |
| 1964 | - | $1,217,759,447 |
| 1963 | - | $1,160,103,724 |
| 1962 | - | $1,118,172,226 |
| 1961 | - | $1,097,206,526 |
| 1960 | - | $1,053,528,036 |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/kiribati/zimbabwe | CC BY 
GDP per capita in Kiribati vs Zimbabwe by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Kiribati
|
Zimbabwe
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2025 | $2,559 | - | $3,021 | - |
| 2024 | $2,551 | $3,702 | $2,496 | $5,928 |
| 2023 | $2,201 | $3,486 | $2,195 | $5,791 |
| 2022 | $2,079 | $3,329 | $2,536 | $5,396 |
| 2021 | $2,224 | $3,020 | $2,614 | $4,827 |
| 2020 | $1,752 | $2,711 | $2,060 | $4,179 |
| 2019 | $1,750 | $2,763 | $2,185 | $4,166 |
| 2018 | $1,916 | $2,672 | $2,271 | $3,993 |
| 2017 | $1,854 | $2,562 | $3,445 | $10,756 |
| 2016 | $1,743 | $2,463 | $1,408 | $4,275 |
| 2015 | $1,640 | $2,311 | $1,387 | $4,046 |
| 2014 | $1,737 | $2,084 | $1,373 | $3,903 |
| 2013 | $1,772 | $2,049 | $1,363 | $3,784 |
| 2012 | $1,844 | $1,896 | $1,239 | $3,472 |
| 2011 | $1,771 | $1,786 | $1,038 | $3,047 |
| 2010 | $1,522 | $1,724 | $902 | $2,661 |
| 2009 | $1,317 | $1,718 | $736 | $2,233 |
| 2008 | $1,411 | $1,735 | $341 | $1,987 |
| 2007 | $1,353 | $1,792 | $414 | $2,396 |
| 2006 | $1,123 | $1,728 | $431 | $2,454 |
| 2005 | $1,162 | $1,617 | $461 | $2,496 |
| 2004 | $1,083 | $1,579 | $470 | $2,591 |
| 2003 | $1,021 | $1,578 | $468 | $2,708 |
| 2002 | $810 | $1,605 | $525 | $3,238 |
| 2001 | $719 | $1,591 | $566 | $3,533 |
| 2000 | $845 | $1,638 | $563 | $3,429 |
| 1999 | $887 | $1,526 | $582 | $3,491 |
| 1998 | $874 | $1,593 | $552 | $3,527 |
| 1997 | $953 | $1,535 | $751 | $3,457 |
| 1996 | $986 | $1,519 | $767 | $3,372 |
| 1995 | $844 | $1,518 | $648 | $3,051 |
| 1994 | $838 | $1,469 | $634 | $3,012 |
| 1993 | $748 | $1,431 | $605 | $2,703 |
| 1992 | $792 | $1,421 | $631 | $2,651 |
| 1991 | $540 | $1,139 | $831 | $2,930 |
| 1990 | $488 | $1,192 | $867 | $2,757 |
| 1989 | $515 | - | $840 | - |
| 1988 | $536 | - | $816 | - |
| 1987 | $424 | - | $726 | - |
| 1986 | $382 | - | $693 | - |
| 1985 | $393 | - | $649 | - |
| 1984 | $527 | - | $757 | - |
| 1983 | $483 | - | $959 | - |
| 1982 | $519 | - | $1,096 | - |
| 1981 | $568 | - | $1,069 | - |
| 1980 | $542 | - | $949 | - |
| 1979 | $573 | - | $779 | - |
| 1978 | $611 | - | $665 | - |
| 1977 | $520 | - | $677 | - |
| 1976 | $548 | - | $687 | - |
| 1975 | $730 | - | $717 | - |
| 1974 | $1,131 | - | $674 | - |
| 1973 | $422 | - | $579 | - |
| 1972 | $256.2 | - | $483 | - |
| 1971 | $210.7 | - | $406 | - |
| 1970 | $201 | - | $361 | - |
| 1969 | - | - | $346 | - |
| 1968 | - | - | $302 | - |
| 1967 | - | - | $294.4 | - |
| 1966 | - | - | $278.7 | - |
| 1965 | - | - | $294.3 | - |
| 1964 | - | - | $281.9 | - |
| 1963 | - | - | $277.1 | - |
| 1962 | - | - | $275.7 | - |
| 1961 | - | - | $279.2 | - |
| 1960 | - | - | $276.6 | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/kiribati/zimbabwe | CC BY
Kiribati's GDP per capita is $2,559, ranking 152/197, compared to $3,021 in Zimbabwe, ranking 146/197. Adjusted for purchasing power (GDP per capita PPP), Kiribati ranks 169th at $3,702, while Zimbabwe ranks 154th at $5,928.
Economic indicators
|
Kiribati
|
Zimbabwe
|
|
|---|---|---|
| Gross domestic product |
$349M
2025 |
$51.2B
2025 |
| GDP rank |
192/197
2025 |
95/197
2025 |
| GDP growth |
4.22%
2024-2025 |
8.11%
2024-2025 |
| GDP per capita |
$2,559
2025 |
$3,021
2025 |
| GDP per capita rank |
152/197
2025 |
146/197
2025 |
| GDP per capita, PPP |
$3,702
2024 |
$5,928
2024 |
| GDP per capita PPP rank |
169/197
2024 |
154/197
2024 |
| Government debt |
$27.8M
2025 |
$22.4B
2025 |
| Debt-to-GDP ratio |
7.95%
2025 |
43.8%
2025 |
| Government debt per person |
$203.4
2025 |
$1,322
2025 |
| Government debt per person rank |
181/185
2025 |
134/185
2025 |
| Average annual personal income after taxes |
$2,170
2026 |
$2,800
2026 |
| Market capitalization of domestic companies | n/a |
$2.46B
1999 |
| Number of billionaires | n/a |
1
2026 |
| Income share by richest 10% |
20.9%
2023 |
40.5%
2019 |
| Income share by poorest 10% |
4.4%
2023 |
1.9%
2019 |
| Government expenditure, % of GDP |
88.2%
2025 |
15.5%
2025 |
| Consumer prices inflation |
6.5%
2024-2025 |
81.4%
2024-2025 |
| Central bank interest rate | n/a |
35%
2024 |
| Unemployment rate |
2.79%
2023 |
12.1%
2024 |
| Population |
139471
|
17443108
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Kiribati
|
Zimbabwe
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2025 | 88.2% | 7.95% | 15.5% | 43.8% |
| 2024 | 86.1% | 8.9% | 13.7% | 70.4% |
| 2023 | 94.4% | 11.3% | 21.1% | 76.1% |
| 2022 | 87.2% | 16.2% | 12.1% | 66.8% |
| 2021 | 84% | 17.3% | 12.4% | 39.9% |
| 2020 | 102.2% | 21% | 8.4% | 56.8% |
| 2019 | 108.3% | 18.5% | 7.7% | 53.9% |
| 2018 | 108.8% | 19% | 14.6% | 33% |
| 2017 | 92.1% | 20.2% | 21.1% | 49% |
| 2016 | 99% | 21.2% | 17% | 35.1% |
| 2015 | 90.9% | 18.8% | 14.9% | 34.1% |
| 2014 | 101.2% | 8.97% | 14.2% | 29.2% |
| 2013 | 78% | 8.86% | 15.2% | 26.4% |
| 2012 | 83.9% | 8.13% | 14.8% | 27.2% |
| 2011 | 80.9% | 8.8% | 16.5% | 30% |
| 2010 | 75.7% | 9.43% | 13.1% | 33.2% |
| 2009 | 74.7% | 10.3% | 8.02% | 39.7% |
| 2008 | 79.4% | 13.9% | 2.57% | 41.3% |
| 2007 | 77.3% | 11.1% | 3.46% | 30.2% |
| 2006 | 82.1% | 12.9% | 5.79% | 26.7% |
| 2005 | 95.6% | 12.1% | 10.6% | 22.4% |
| 2004 | 103.8% | 13.6% | - | - |
| 2003 | 84.4% | 12.3% | - | - |
| 2002 | 96.9% | 13.3% | - | - |
| 2001 | 101.3% | 17% | - | - |
| 2000 | 66% | 12.7% | - | - |
| 1999 | 77.6% | 11.8% | - | - |
| 1998 | 74.7% | 9.81% | - | - |
| 1997 | 70.9% | 10.7% | - | - |
| 1996 | 68.4% | 11% | - | - |
| 1995 | 69.6% | 12.3% | - | - |
| 1994 | 54.6% | 12.3% | - | - |
| 1993 | 55.3% | 10.9% | - | - |
| 1992 | 65.9% | 7.31% | - | - |
| 1991 | 82.1% | 8.43% | - | - |
| 1990 | 105.5% | 7.72% | - | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).
GeoRank.org/economy/kiribati/zimbabwe | CC BY
In 2025, Kiribati's government spending was $308M, accounting for 88.2% of its GDP, while Zimbabwe spent $7.92B, or 15.5% of GDP.
Debt-to-GDP ratio is 7.95% in Kiribati and 43.8% in Zimbabwe, ranking 182/185 and 120/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Kiribati
|
Zimbabwe
|
|
| 2025 | -14.5% | 0.08% |
| 2024 | -14.1% | -0.76% |
| 2023 | 1.81% | -9.45% |
| 2022 | -18.2% | -1% |
| 2021 | -10.8% | -1.83% |
| 2020 | 3.57% | 0.53% |
| 2019 | 10.8% | -0.06% |
| 2018 | 5.18% | -4.55% |
| 2017 | 34.1% | -8.68% |
| 2016 | 20.1% | -4.99% |
| 2015 | 42.5% | -1.61% |
| 2014 | 35% | -0.87% |
| 2013 | 11.8% | -1.21% |
| 2012 | -5.43% | -0.35% |
| 2011 | -17.6% | -1.98% |
| 2010 | -7.8% | -0.4% |
| 2009 | -8.56% | -1.48% |
| 2008 | -15.8% | -1.22% |
| 2007 | -12.5% | -1.71% |
| 2006 | -12.3% | -1.46% |
| 2005 | -9.96% | -3.58% |
| 2004 | -19.2% | - |
| 2003 | -8.93% | - |
| 2002 | 3.13% | - |
| 2001 | -10.9% | - |
| 2000 | -0.03% | - |
| 1999 | -1.81% | - |
| 1998 | 14.6% | - |
| 1997 | 5.92% | - |
| 1996 | -20.2% | - |
| 1995 | -5.14% | - |
| 1994 | 0.74% | - |
| 1993 | 6.27% | - |
| 1992 | 0.79% | - |
| 1991 | 3.87% | - |
| 1990 | -4.62% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).
GeoRank.org/economy/kiribati/zimbabwe | CC BY
In 2025, Kiribati's government deficit, the difference between spending and revenue, was $50.6M, equivalent to 14.5% of GDP. This compares to Zimbabwe's surplus of $41.9M, or 0.08% of GDP.
Over the past 21 years, Kiribati recorded a fiscal deficit in 12 of those years, while Zimbabwe ran a deficit in 19 years. On average, Kiribati posted an annual surplus equal to 0.82% of GDP, compared to deficit of 2.22% of GDP for Zimbabwe.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Kiribati
|
Zimbabwe
|
|
| 2025 | 6.5% | 81.4% |
| 2024 | 2.5% | 736% |
| 2023 | 9.3% | 667% |
| 2022 | 5.3% | 193.4% |
| 2021 | 2.1% | 98.5% |
| 2020 | 2.6% | 557% |
| 2019 | -1.8% | 255.3% |
| 2018 | 0.6% | 10.6% |
| 2017 | 0.4% | 0.9% |
| 2016 | 1.9% | -1.6% |
| 2015 | 0.6% | -2.4% |
| 2014 | 2.1% | -0.2% |
| 2013 | -1.5% | 1.6% |
| 2012 | -3% | 3.7% |
| 2011 | 1.5% | 3.5% |
| 2010 | -3.9% | 3% |
| 2009 | 9.8% | 6.2% |
| 2008 | 13.7% | - |
| 2007 | 3.6% | - |
| 2006 | -1% | - |
| 2005 | -0.4% | - |
| 2004 | -0.7% | - |
| 2003 | 1.6% | - |
| 2002 | 3.2% | - |
| 2001 | 6% | - |
| 2000 | 0.4% | - |
| 1999 | 1.8% | - |
| 1998 | 3.7% | - |
| 1997 | 2.6% | - |
Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2025, retrieved 2026-07-08).
GeoRank.org/economy/kiribati/zimbabwe | CC BY
Over the past 17 years, Kiribati has recorded an average annual inflation rate of 2.06%, compared with 153.8% in Zimbabwe. In 2025, inflation was 6.5% in Kiribati and 81.4% in Zimbabwe.
Balance of trade
|
Kiribati
|
Zimbabwe
|
|
|---|---|---|
|
Current account balance
|
-$61.3M
2025 |
$501M
2024 |
| Current account balance ranking |
77/190
2025 |
59/190
2024 |
| Current account balance, % of GDP |
-17.6%
2025 |
+1.21%
2024 |
| Goods imports |
$270M
2025 |
$9.06B
2024 |
| Goods exports |
$17.3M
2025 |
$7.79B
2024 |
| Service imports |
$110M
2025 |
$1.66B
2024 |
| Service exports |
$8.63M
2025 |
$457M
2024 |
| Imports of goods and services, % of GDP |
97.6%
2024 |
23.4%
2024 |
| Exports of goods and services, % of GDP |
4.52%
2024 |
18.1%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Kiribati
|
Zimbabwe
|
|
|---|---|---|
| Economic freedom | 50.8 | 35.2 |
| Economic freedom ranking | 158/197 | 190/197 |
| Property rights | 69.6 | 19.4 |
| Government integrity | 50.5 | 20.7 |
| Judicial effectiveness | 54.6 | 16.8 |
| Tax burden | 72.6 | 73.6 |
| Government spending | 0 | 93.9 |
| Fiscal health | 19.8 | 52.4 |
| Business freedom | 60.2 | 42 |
| Labor freedom | 65.3 | 33.3 |
| Monetary freedom | 76.7 | 0 |
| Trade freedom | 80 | 50.4 |
| Investment freedom | 30 | 10 |
| Financial freedom | 30 | 10 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Kiribati
|
Zimbabwe
|
|
| 2026 | 50.8 | 35.2 |
| 2025 | 50.9 | 35.1 |
| 2024 | 51.3 | 38.2 |
| 2023 | 58.8 | 39 |
| 2022 | 59.2 | 33.1 |
| 2021 | 44.4 | 39.5 |
| 2020 | 45.2 | 43.1 |
| 2019 | 47.3 | 40.4 |
| 2018 | 50.8 | 44 |
| 2017 | 50.9 | 44 |
| 2016 | 46.2 | 38.2 |
| 2015 | 46.4 | 37.6 |
| 2014 | 46.3 | 35.5 |
| 2013 | 45.9 | 28.6 |
| 2012 | 46.9 | 26.3 |
| 2011 | 44.8 | 22.1 |
| 2010 | 43.7 | 21.4 |
| 2009 | 45.7 | 22.7 |
| 2008 | - | 29.5 |
| 2007 | - | 32 |
| 2006 | - | 33.5 |
| 2005 | - | 35.2 |
| 2004 | - | 34.4 |
| 2003 | - | 36.7 |
| 2002 | - | 36.7 |
| 2001 | - | 38.8 |
| 2000 | - | 48.7 |
| 1999 | - | 47.2 |
| 1998 | - | 44.6 |
| 1997 | - | 48 |
| 1996 | - | 46.7 |
| 1995 | - | 48.5 |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08).
GeoRank.org/economy/kiribati/zimbabwe | CC BY
The Economic Freedom Index for Kiribati is 50.8, ranking 158/197, compared to 35.2 for Zimbabwe, ranking 190/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Kiribati
|
Zimbabwe
|
|
|---|---|---|
| Services, % of GDP |
70.3%
2024 |
48.2%
2025 |
| Industry, % of GDP |
11.8%
2024 |
37.1%
2025 |
| Agriculture, forestry, and fishing, % of GDP |
23.2%
2024 |
9.47%
2025 |
|
GNI, Atlas method
|
$537M
2025 |
$45B
2025 |
| GNI per capita, PPP |
$6,080
2025 |
$6,390
2025 |
| Total reserves including gold | n/a |
$485M
2024 |
| Total reserves ranking | n/a |
159/177
2024 |
|
Net foreign direct investment
|
-$4.14M
2025 |
-$465M
2024 |
|
Net inflows of foreign direct investment
|
$8.07M
2024 |
$465M
2024 |
|
Net outflows of foreign direct investment
|
$16.4K
2024 |
$131M
2024 |
|
Servicing debt to the IMF, % of GNI
|
n/a |
3.44%
2024 |
| Poverty at national poverty lines |
5.5%
2023 |
38.3%
2019 |
|
Gross capital formation, % of GDP
|
29.9%
2024 |
8.85%
2024 |
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/kiribati/zimbabwe | 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)
- 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.