Liberia has a GDP of $4.78B compared to $107B for Oman, ranking 163/197 and 70/197 by economy size, respectively.
Liberia has $2.73B in government debt (57.2% of GDP), compared to $38B (35.5% of GDP) in Oman.
Liberia vs Oman GDP by year
| Year | GDP, current $ | |
|---|---|---|
Liberia
|
Oman
|
|
| 2024 | $4,779,300,900 | $107,137,198,769 |
| 2023 | $4,390,000,000 | $106,174,708,037 |
| 2022 | $4,001,047,000 | $109,852,795,839 |
| 2021 | $3,513,049,500 | $87,323,797,139 |
| 2020 | $3,176,126,300 | $75,909,492,848 |
| 2019 | $3,319,596,500 | $88,060,858,257 |
| 2018 | $3,422,754,800 | $91,505,851,756 |
| 2017 | $3,390,703,400 | $80,856,697,009 |
| 2016 | $3,398,419,600 | $75,128,738,622 |
| 2015 | $3,227,075,700 | $78,710,793,238 |
| 2014 | $3,225,652,000 | $92,699,089,727 |
| 2013 | $3,177,198,100 | $89,936,020,806 |
| 2012 | $2,791,614,000 | $87,408,842,653 |
| 2011 | $2,398,000,000 | $77,497,529,259 |
| 2010 | $1,998,000,000 | $64,993,498,049 |
| 2009 | $1,768,000,000 | $55,454,096,229 |
| 2008 | $1,726,000,000 | $69,804,681,404 |
| 2007 | $1,373,000,000 | $48,300,390,117 |
| 2006 | $1,119,000,000 | $42,577,633,290 |
| 2005 | $949,000,000 | $35,506,892,068 |
| 2004 | $897,000,000 | $28,378,933,680 |
| 2003 | $748,000,000 | $24,733,680,104 |
| 2002 | $927,000,000 | $23,065,539,662 |
| 2001 | $906,000,000 | $22,205,721,717 |
| 2000 | $874,000,000 | $22,259,557,867 |
| 1999 | $441,800,000 | $17,832,769,831 |
| 1998 | $359,600,000 | $16,044,213,264 |
| 1997 | $295,900,000 | $18,039,791,938 |
| 1996 | $159,400,000 | $17,402,080,624 |
| 1995 | $134,800,000 | $15,722,236,671 |
| 1994 | $132,200,000 | $14,715,214,564 |
| 1993 | $160,400,000 | $14,230,429,129 |
| 1992 | $223,500,000 | $14,183,615,085 |
| 1991 | $348,000,000 | $12,918,335,501 |
| 1990 | $384,400,000 | $13,310,273,082 |
| 1989 | $786,300,000 | $9,372,171,651 |
| 1988 | $1,038,300,000 | $8,386,215,865 |
| 1987 | $972,800,000 | $7,811,183,095 |
| 1986 | $840,964,400 | $7,324,167,369 |
| 1985 | $851,296,100 | $10,005,645,420 |
| 1984 | $848,478,300 | $8,821,443,151 |
| 1983 | $823,374,900 | $7,932,541,691 |
| 1982 | $863,933,200 | $7,554,719,456 |
| 1981 | $846,514,500 | $7,259,120,151 |
| 1980 | $854,711,500 | $5,981,760,278 |
| 1979 | $814,067,900 | $3,733,352,635 |
| 1978 | $717,240,400 | $2,740,301,390 |
| 1977 | $673,010,600 | $2,741,169,948 |
| 1976 | $596,675,700 | $2,560,220,035 |
| 1975 | $577,549,300 | $2,096,699,189 |
| 1974 | $486,955,000 | $1,645,917,776 |
| 1973 | $386,968,300 | $483,066,991 |
| 1972 | $368,098,000 | $366,883,548 |
| 1971 | $341,543,100 | $301,010,587 |
| 1970 | $323,099,700 | $256,319,795 |
| 1969 | $306,961,800 | $239,999,808 |
| 1968 | $276,820,700 | $188,879,849 |
| 1967 | $261,024,300 | $107,151,832 |
| 1966 | $244,459,500 | $67,759,973 |
| 1965 | $229,260,800 | $63,279,975 |
| 1964 | $218,929,100 | $61,872,526 |
| 1963 | $200,229,600 | $59,912,763 |
| 1962 | $191,861,800 | $56,273,202 |
| 1961 | $183,920,900 | $45,634,487 |
| 1960 | $190,495,600 | $44,234,656 |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/liberia/oman | CC BY 
GDP per capita in Liberia vs Oman by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Liberia
|
Oman
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2024 | $851 | $1,871 | $20,285 | $41,740 |
| 2023 | $799 | $1,795 | $21,028 | $41,945 |
| 2022 | $745 | $1,692 | $23,224 | $42,616 |
| 2021 | $668 | $1,539 | $19,403 | $38,719 |
| 2020 | $617 | $1,660 | $16,785 | $35,163 |
| 2019 | $658 | $1,900 | $19,180 | $37,251 |
| 2018 | $692 | $1,800 | $19,902 | $37,780 |
| 2017 | $699 | $1,665 | $17,820 | $33,619 |
| 2016 | $715 | $1,490 | $17,110 | $33,334 |
| 2015 | $693 | $1,340 | $18,808 | $36,058 |
| 2014 | $707 | $1,419 | $23,161 | $44,236 |
| 2013 | $711 | $1,360 | $23,458 | $47,013 |
| 2012 | $638 | $1,157 | $24,642 | $49,989 |
| 2011 | $568 | $1,041 | $25,188 | $52,393 |
| 2010 | $492 | $980 | $23,570 | $55,667 |
| 2009 | $448 | $939 | $20,656 | $55,127 |
| 2008 | $452 | $915 | $26,577 | $52,841 |
| 2007 | $374 | $873 | $18,793 | $48,627 |
| 2006 | $321 | $815 | $16,931 | $46,091 |
| 2005 | $287.5 | $774 | $14,435 | $43,673 |
| 2004 | $284.1 | $745 | $11,801 | $42,142 |
| 2003 | $239.8 | $716 | $10,464 | $40,935 |
| 2002 | $299.5 | $1,013 | $9,869 | $41,511 |
| 2001 | $300 | $987 | $9,612 | $41,679 |
| 2000 | $298.5 | $965 | $9,754 | $39,443 |
| 1999 | $156.6 | $762 | $7,915 | $36,792 |
| 1998 | $134.7 | $652 | $7,219 | $36,666 |
| 1997 | $122.6 | $548 | $8,235 | $36,809 |
| 1996 | $71.4 | $282.2 | $8,068 | $34,661 |
| 1995 | $62.1 | $254.4 | $7,414 | $33,598 |
| 1994 | $61.5 | $262.6 | $7,068 | $31,925 |
| 1993 | $74.4 | $328 | $7,039 | $30,987 |
| 1992 | $107.8 | $497 | $7,318 | $29,773 |
| 1991 | $177.9 | $793 | $6,977 | $28,109 |
| 1990 | $172.9 | $787 | $7,546 | $26,904 |
| 1989 | $312 | - | $5,591 | - |
| 1988 | $424 | - | $5,279 | - |
| 1987 | $409 | - | $5,204 | - |
| 1986 | $364 | - | $5,182 | - |
| 1985 | $380 | - | $7,549 | - |
| 1984 | $390 | - | $7,070 | - |
| 1983 | $391 | - | $6,714 | - |
| 1982 | $422 | - | $6,759 | - |
| 1981 | $426 | - | $6,866 | - |
| 1980 | $443 | - | $5,974 | - |
| 1979 | $435 | - | $3,934 | - |
| 1978 | $394 | - | $3,044 | - |
| 1977 | $381 | - | $3,205 | - |
| 1976 | $347 | - | $3,143 | - |
| 1975 | $346 | - | $2,692 | - |
| 1974 | $299.4 | - | $2,203 | - |
| 1973 | $244.4 | - | $670 | - |
| 1972 | $238.6 | - | $524 | - |
| 1971 | $227.1 | - | $442 | - |
| 1970 | $220.3 | - | $387 | - |
| 1969 | $214.7 | - | $372 | - |
| 1968 | $198.6 | - | $300 | - |
| 1967 | $192.2 | - | $174.7 | - |
| 1966 | $184.6 | - | $113.2 | - |
| 1965 | $177.6 | - | $108.1 | - |
| 1964 | $173.9 | - | $108.1 | - |
| 1963 | $163.1 | - | $106.8 | - |
| 1962 | $160.3 | - | $102.3 | - |
| 1961 | $157.5 | - | $84.5 | - |
| 1960 | $167.2 | - | $83.4 | - |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/liberia/oman | CC BY
Liberia's GDP per capita is $851, ranking 184/197, compared to $20,285 in Oman, ranking 57/197. Adjusted for purchasing power (GDP per capita PPP), Liberia ranks 188th at $1,871, while Oman ranks 55th at $41,740.
Economic indicators
|
Liberia
|
Oman
|
|
|---|---|---|
| Gross domestic product |
$4.78B
2024 |
$107B
2024 |
| GDP rank |
163/197
2024 |
70/197
2024 |
| GDP growth |
4.02%
2023-2024 |
1.63%
2023-2024 |
| GDP per capita |
$851
2024 |
$20,285
2024 |
| GDP per capita rank |
184/197
2024 |
57/197
2024 |
| GDP per capita, PPP |
$1,871
2024 |
$41,740
2024 |
| GDP per capita PPP rank |
188/197
2024 |
55/197
2024 |
| Government debt |
$2.73B
2024 |
$38B
2024 |
| Debt-to-GDP ratio |
57.2%
2024 |
35.5%
2024 |
| Government debt per person |
$487
2024 |
$7,204
2024 |
| Government debt per person rank |
167/185
2024 |
67/185
2024 |
| Average annual personal income after taxes |
$1,191
2026 |
$20,894
2026 |
| Market capitalization of domestic companies | n/a |
$22.3B
2022 |
| Number of billionaires | n/a |
2
2025 |
| Income share by richest 10% |
27.1%
2016 |
n/a |
| Income share by poorest 10% |
2.9%
2016 |
n/a |
| Government expenditure, % of GDP |
24.3%
2024 |
28.7%
2024 |
| Consumer prices inflation |
8.2%
2023-2024 |
0.6%
2023-2024 |
| Central bank interest rate | n/a |
4.5%
2025 |
| Unemployment rate |
5.93%
2017 |
3.3%
2024 |
| Population |
5887000
|
5761708
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Liberia
|
Oman
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2024 | 24.3% | 57.2% | 28.7% | 35.5% |
| 2023 | 27.1% | 57.8% | 27.5% | 37.5% |
| 2022 | 26.9% | 54.3% | 30.9% | 41.7% |
| 2021 | 29.8% | 53.3% | 36.5% | 61.9% |
| 2020 | 35.3% | 58.7% | 44.5% | 67.9% |
| 2019 | 32.3% | 48.6% | 38.8% | 52.5% |
| 2018 | 32.7% | 37.1% | 38.3% | 44.7% |
| 2017 | 35.1% | 31.8% | 39.4% | 40.1% |
| 2016 | 35.8% | 28.6% | 44.6% | 29.3% |
| 2015 | 37.1% | 24.8% | 44.5% | 13.9% |
| 2014 | 33.4% | 24.3% | 41.4% | 4.04% |
| 2013 | 27.4% | 20.6% | 39.3% | 4.66% |
| 2012 | 30.8% | 20.5% | 38.6% | 4.59% |
| 2011 | 30.1% | 22.7% | 34.5% | 4.44% |
| 2010 | 25.2% | 25.6% | 30.6% | 5.46% |
| 2009 | 23.7% | 130.9% | 33.4% | 5.8% |
| 2008 | 21.6% | 233.1% | 25.6% | 3.2% |
| 2007 | 17.2% | 394% | 30.7% | 4.44% |
| 2006 | 11.1% | 472% | 30.1% | 7.56% |
| 2005 | 12.8% | 535% | 30.6% | 8.39% |
| 2004 | 12.1% | 543% | 34.1% | 14.5% |
| 2003 | 9.85% | 658% | 34% | 13% |
| 2002 | 13.2% | 481% | 34.1% | 15.9% |
| 2001 | 12.6% | 484% | 33.3% | 22.5% |
| 2000 | 15.2% | 489% | 31.2% | 21.7% |
| 1999 | - | - | 34.2% | 28.9% |
| 1998 | - | - | 36.1% | 30.9% |
| 1997 | - | - | 32.1% | 20.8% |
| 1996 | - | - | 33.5% | 21.2% |
| 1995 | - | - | 38.2% | 21.9% |
| 1994 | - | - | 39.7% | 23.6% |
| 1993 | - | - | 40.1% | 22.2% |
| 1992 | - | - | 40.1% | 23.1% |
| 1991 | - | - | 37.4% | 22.6% |
| 1990 | - | - | 36.5% | 17.8% |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20).
GeoRank.org/economy/liberia/oman | CC BY
In 2024, Liberia's government spending was $1.16B, accounting for 24.3% of its GDP, while Oman spent $30.7B, or 28.7% of GDP.
Debt-to-GDP ratio is 57.2% in Liberia and 35.5% in Oman, ranking 91/185 and 145/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Liberia
|
Oman
|
|
| 2024 | -1.98% | 3.31% |
| 2023 | -7.03% | 6.87% |
| 2022 | -5.33% | 10.5% |
| 2021 | -2.5% | -3.17% |
| 2020 | -4.02% | -15.7% |
| 2019 | -4.92% | -4.83% |
| 2018 | -4.7% | -6.72% |
| 2017 | -7.14% | -10.5% |
| 2016 | -3.83% | -19.6% |
| 2015 | -3.74% | -13.5% |
| 2014 | -4.92% | -1.58% |
| 2013 | 1.29% | 2.78% |
| 2012 | -2.86% | 4.07% |
| 2011 | -4.43% | 8.24% |
| 2010 | 1.17% | 4.95% |
| 2009 | -1.39% | -0.27% |
| 2008 | -2.68% | 14.7% |
| 2007 | 2.44% | 10.5% |
| 2006 | 4.42% | 12.2% |
| 2005 | -0.55% | 11.2% |
| 2004 | -0.56% | 5.43% |
| 2003 | 0.39% | 5.92% |
| 2002 | -1.63% | 5.31% |
| 2001 | -0.98% | 7.55% |
| 2000 | -0.08% | 12.2% |
| 1999 | - | 0.3% |
| 1998 | - | -4.37% |
| 1997 | - | 4.77% |
| 1996 | - | 2.22% |
| 1995 | - | -3.9% |
| 1994 | - | -7.47% |
| 1993 | - | -6.84% |
| 1992 | - | -4.85% |
| 1991 | - | 0.12% |
| 1990 | - | 4.78% |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20).
GeoRank.org/economy/liberia/oman | CC BY
In 2024, Liberia's government deficit, the difference between spending and revenue, was $94.6M, equivalent to 1.98% of GDP. This compares to Oman's surplus of $3.54B, or 3.31% of GDP.
Over the past 25 years, Liberia recorded a fiscal deficit in 20 of those years, while Oman ran a deficit in 9 years. On average, Liberia posted an annual deficit equal to 2.22% of GDP, compared to surplus of 2% of GDP for Oman.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Liberia
|
Oman
|
|
| 2024 | 8.2% | 0.6% |
| 2023 | 10.1% | 1% |
| 2022 | 7.6% | 2.5% |
| 2021 | 7.8% | 1.7% |
| 2020 | 17% | -0.4% |
| 2019 | 27% | 0.5% |
| 2018 | 23.5% | 0.7% |
| 2017 | 12.4% | 1.5% |
| 2016 | 8.8% | 0.9% |
| 2015 | 7.7% | 0.1% |
| 2014 | 9.9% | 1.2% |
| 2013 | 7.6% | 1.3% |
| 2012 | 6.8% | 2.9% |
| 2011 | 8.5% | 4.1% |
| 2010 | 7.3% | 3.3% |
| 2009 | 7.4% | 3.5% |
| 2008 | 17.5% | 12.6% |
| 2007 | 11.4% | 5.9% |
| 2006 | 9.5% | 3.2% |
| 2005 | 6.9% | 1.9% |
| 2004 | 3.6% | 0.8% |
| 2003 | 10.3% | 0.2% |
| 2002 | 14.2% | -0.3% |
| 2001 | 12.1% | -0.8% |
| 2000 | 5.3% | -1.2% |
| 1999 | 2% | 0.5% |
| 1998 | - | 0.4% |
| 1997 | - | -0.4% |
Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2024, retrieved 2026-02-20).
GeoRank.org/economy/liberia/oman | CC BY
Over the past 26 years, Liberia has recorded an average annual inflation rate of 10.4%, compared with 1.85% in Oman. In 2024, inflation was 8.2% in Liberia and 0.6% in Oman.
Top exports between countries
Balance of trade
|
Liberia
|
Oman
|
|
|---|---|---|
|
Current account balance
|
$64.8M
2022 |
$3.07B
2024 |
| Current account balance ranking |
73/190
2022 |
39/190
2024 |
| Current account balance, % of GDP |
+1.62%
2022 |
+2.86%
2024 |
| Goods imports |
$1.53B
2022 |
$39.5B
2024 |
| Goods exports |
$1.03B
2022 |
$65.2B
2024 |
| Service imports |
$434M
2022 |
$12.8B
2024 |
| Service exports |
$192M
2022 |
$5.64B
2024 |
| Imports of goods and services, % of GDP | n/a |
48.8%
2024 |
| Exports of goods and services, % of GDP |
28.5%
2025 |
66.1%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Liberia
|
Oman
|
|
|---|---|---|
| Economic freedom | 49.8 | 68.5 |
| Economic freedom ranking | 163/197 | 45/197 |
| Property rights | 40.4 | 71.8 |
| Government integrity | 25.8 | 49.4 |
| Judicial effectiveness | 23.4 | 28 |
| Tax burden | 86.1 | 97.6 |
| Government spending | 79.5 | 74.7 |
| Fiscal health | 56.9 | 97.5 |
| Business freedom | 38 | 67.8 |
| Labor freedom | 43.4 | 47.7 |
| Monetary freedom | 71.4 | 79.2 |
| Trade freedom | 57.4 | 78.4 |
| Investment freedom | 55 | 70 |
| Financial freedom | 20 | 60 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Liberia
|
Oman
|
|
| 2026 | 49.8 | 68.5 |
| 2025 | 48.5 | 65.4 |
| 2024 | 49.9 | 62.9 |
| 2023 | 49.6 | 58.5 |
| 2022 | 47.9 | 56.6 |
| 2021 | 49.2 | 64.6 |
| 2020 | 49 | 63.6 |
| 2019 | 49.7 | 61 |
| 2018 | 50.9 | 61 |
| 2017 | 49.1 | 62.1 |
| 2016 | 52.2 | 67.1 |
| 2015 | 52.7 | 66.7 |
| 2014 | 52.4 | 67.4 |
| 2013 | 49.3 | 68.1 |
| 2012 | 48.6 | 67.9 |
| 2011 | 46.5 | 69.8 |
| 2010 | 46.2 | 67.7 |
| 2009 | 48.1 | 67 |
| 2008 | - | 67.3 |
| 2007 | - | 65.8 |
| 2006 | - | 63.7 |
| 2005 | - | 66.5 |
| 2004 | - | 66.9 |
| 2003 | - | 64.6 |
| 2002 | - | 64 |
| 2001 | - | 67.7 |
| 2000 | - | 64.1 |
| 1999 | - | 64.9 |
| 1998 | - | 64.9 |
| 1997 | - | 64.5 |
| 1996 | - | 65.4 |
| 1995 | - | 70.2 |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09).
GeoRank.org/economy/liberia/oman | CC BY
The Economic Freedom Index for Liberia is 49.8, ranking 163/197, compared to 68.5 for Oman, ranking 45/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Liberia
|
Oman
|
|
|---|---|---|
| Services, % of GDP |
41.9%
2024 |
46%
2024 |
| Industry, % of GDP |
22.7%
2024 |
54.2%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
33.8%
2024 |
2.6%
2024 |
|
GNI, Atlas method
|
$4.28B
2024 |
$103B
2024 |
| GNI per capita, PPP |
$1,750
2024 |
$39,340
2024 |
| Total reserves including gold |
$600M
2022 |
$18.3B
2024 |
| Total reserves ranking |
153/177
2022 |
64/177
2024 |
|
Net foreign direct investment
|
-$960M
2022 |
-$12.6B
2024 |
|
Net inflows of foreign direct investment
|
$472M
2024 |
$12.5B
2024 |
|
Net outflows of foreign direct investment
|
$74.9M
2024 |
-$143M
2024 |
|
Servicing debt to the IMF, % of GNI
|
3.09%
2024 |
n/a |
| Poverty at national poverty lines |
50.9%
2016 |
n/a |
|
Gross capital formation, % of GDP
|
n/a |
24.8%
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/liberia/oman | 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 (2020–2023, retrieved 2026-02-08)
- United Nations | World Population Prospects (2026, retrieved 2026-03-10)
- LivingCost (2026, retrieved 2025-10-14)
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.