Mauritania has a GDP of $11.7B compared to $16.2B for Mauritius, ranking 153/197 and 144/197 by economy size, respectively.
Mauritania has $4.68B in government debt (40.1% of GDP), compared to $14B (86.5% of GDP) in Mauritius.
Mauritania vs Mauritius GDP by year
| Year | GDP, current $ | |
|---|---|---|
Mauritania
|
Mauritius
|
|
| 2025 | $11,679,910,946 | $16,157,804,492 |
| 2024 | $10,879,212,033 | $14,938,055,690 |
| 2023 | $10,687,541,640 | $14,072,212,290 |
| 2022 | $9,562,497,461 | $12,936,444,123 |
| 2021 | $9,221,044,667 | $11,622,048,697 |
| 2020 | $8,260,567,357 | $11,566,111,138 |
| 2019 | $7,894,764,886 | $14,645,235,205 |
| 2018 | $7,475,471,310 | $14,957,535,716 |
| 2017 | $6,812,472,965 | $13,896,938,315 |
| 2016 | $6,407,900,701 | $12,757,680,847 |
| 2015 | $6,182,303,677 | $12,162,211,503 |
| 2014 | $6,615,483,550 | $13,230,490,082 |
| 2013 | $7,230,646,063 | $12,434,596,541 |
| 2012 | $6,728,208,836 | $11,832,323,837 |
| 2011 | $6,764,627,746 | $11,677,718,382 |
| 2010 | $5,628,878,798 | $10,144,716,155 |
| 2009 | $4,714,595,548 | $9,264,482,256 |
| 2008 | $5,206,437,194 | $10,127,741,915 |
| 2007 | $4,346,212,355 | $8,277,474,850 |
| 2006 | $3,919,577,286 | $7,137,710,413 |
| 2005 | $2,936,019,526 | $6,576,108,447 |
| 2004 | $2,362,501,023 | $6,667,418,752 |
| 2003 | $2,051,147,607 | $5,894,873,920 |
| 2002 | $1,777,057,481 | $4,906,494,249 |
| 2001 | $1,746,063,558 | $4,675,755,867 |
| 2000 | $1,779,520,886 | $4,726,108,622 |
| 1999 | $1,985,922,776 | $4,402,193,195 |
| 1998 | $2,032,347,665 | $4,225,813,976 |
| 1997 | $2,071,996,564 | $4,243,755,308 |
| 1996 | $2,132,087,009 | $4,481,489,762 |
| 1995 | $2,091,726,101 | $4,094,741,652 |
| 1994 | $1,944,876,755 | $3,606,050,873 |
| 1993 | $1,847,353,211 | $3,307,302,126 |
| 1992 | $2,164,298,425 | $3,267,677,814 |
| 1991 | $2,133,692,697 | $2,895,354,736 |
| 1990 | $1,506,914,408 | $2,689,212,760 |
| 1989 | $1,450,647,019 | $2,211,312,823 |
| 1988 | $1,414,951,290 | $2,163,252,449 |
| 1987 | $1,344,664,725 | $1,906,174,438 |
| 1986 | $1,186,628,778 | $1,482,601,552 |
| 1985 | $1,009,723,326 | $1,090,611,325 |
| 1984 | $1,074,373,230 | $1,054,564,759 |
| 1983 | $1,165,171,263 | $1,104,956,573 |
| 1982 | $1,108,776,653 | $1,092,923,636 |
| 1981 | $1,105,494,682 | $1,157,769,444 |
| 1980 | $1,047,925,106 | $1,147,027,924 |
| 1979 | $951,900,945 | $1,227,446,632 |
| 1978 | $804,629,877 | $1,029,040,323 |
| 1977 | $799,030,017 | $834,722,972 |
| 1976 | $775,045,517 | $713,510,052 |
| 1975 | $703,377,837 | $673,311,287 |
| 1974 | $613,010,553 | $669,894,030 |
| 1973 | $493,237,876 | $404,285,775 |
| 1972 | $391,669,449 | $318,664,900 |
| 1971 | $335,568,907 | $251,437,338 |
| 1970 | $309,405,316 | $224,125,805 |
| 1969 | $295,062,308 | $221,553,613 |
| 1968 | $311,395,937 | $206,576,631 |
| 1967 | $282,615,310 | $238,439,291 |
| 1966 | $266,533,605 | $227,534,083 |
| 1965 | $255,340,475 | $230,024,161 |
| 1964 | $224,495,744 | $218,914,569 |
| 1963 | $168,186,297 | $253,839,558 |
| 1962 | $164,271,558 | $197,738,208 |
| 1961 | $159,213,430 | $191,757,729 |
| 1960 | - | $162,089,564 |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/mauritius | CC BY 
GDP per capita in Mauritania vs Mauritius by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Mauritania
|
Mauritius
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2025 | $2,198 | - | $12,991 | - |
| 2024 | $2,105 | $7,369 | $11,991 | $31,840 |
| 2023 | $2,128 | $6,966 | $11,270 | $29,561 |
| 2022 | $1,961 | $6,485 | $10,247 | $26,874 |
| 2021 | $1,947 | $5,837 | $9,178 | $23,010 |
| 2020 | $1,796 | $5,741 | $9,136 | $21,622 |
| 2019 | $1,767 | $5,610 | $11,568 | $24,375 |
| 2018 | $1,723 | $5,429 | $11,819 | $23,416 |
| 2017 | $1,618 | $5,353 | $10,987 | $22,898 |
| 2016 | $1,568 | $4,683 | $10,095 | $21,952 |
| 2015 | $1,559 | $3,978 | $9,631 | $20,270 |
| 2014 | $1,719 | $3,865 | $10,490 | $19,294 |
| 2013 | $1,936 | $3,831 | $9,877 | $18,435 |
| 2012 | $1,859 | $3,465 | $9,422 | $17,259 |
| 2011 | $1,931 | $3,271 | $9,324 | $16,884 |
| 2010 | $1,660 | $3,178 | $8,113 | $15,920 |
| 2009 | $1,435 | $3,159 | $7,427 | $15,105 |
| 2008 | $1,636 | $3,236 | $8,140 | $14,569 |
| 2007 | $1,405 | $3,278 | $6,677 | $13,612 |
| 2006 | $1,301 | $3,342 | $5,784 | $12,593 |
| 2005 | $999 | $2,809 | $5,354 | $11,703 |
| 2004 | $824 | $2,570 | $5,461 | $11,216 |
| 2003 | $732 | $2,447 | $4,858 | $10,535 |
| 2002 | $649 | $2,296 | $4,073 | $9,824 |
| 2001 | $652 | $2,280 | $3,909 | $9,586 |
| 2000 | $681 | $2,304 | $3,982 | $9,143 |
| 1999 | $781 | $2,411 | $3,746 | $8,344 |
| 1998 | $821 | $2,355 | $3,642 | $8,121 |
| 1997 | $859 | $2,325 | $3,696 | $7,651 |
| 1996 | $904 | $2,436 | $3,952 | $7,206 |
| 1995 | $905 | $2,306 | $3,648 | $6,771 |
| 1994 | $865 | $2,114 | $3,240 | $6,414 |
| 1993 | $850 | $2,209 | $3,014 | $6,116 |
| 1992 | $1,036 | $2,122 | $3,013 | $5,753 |
| 1991 | $1,062 | $2,116 | $2,705 | $5,351 |
| 1990 | $772 | $2,070 | $2,540 | $5,010 |
| 1989 | $762 | - | $2,103 | - |
| 1988 | $762 | - | $2,074 | - |
| 1987 | $746 | - | $1,840 | - |
| 1986 | $677 | - | $1,442 | - |
| 1985 | $593 | - | $1,069 | - |
| 1984 | $650 | - | $1,042 | - |
| 1983 | $725 | - | $1,103 | - |
| 1982 | $710 | - | $1,101 | - |
| 1981 | $729 | - | $1,181 | - |
| 1980 | $711 | - | $1,187 | - |
| 1979 | $664 | - | $1,292 | - |
| 1978 | $578 | - | $1,102 | - |
| 1977 | $590 | - | $906 | - |
| 1976 | $589 | - | $787 | - |
| 1975 | $551 | - | $755 | - |
| 1974 | $494 | - | $763 | - |
| 1973 | $410 | - | $467 | - |
| 1972 | $335 | - | $374 | - |
| 1971 | $296 | - | $299.6 | - |
| 1970 | $281.3 | - | $271.3 | - |
| 1969 | $276.6 | - | $272.7 | - |
| 1968 | $301 | - | $258.7 | - |
| 1967 | $281.5 | - | $304 | - |
| 1966 | $273.6 | - | $296 | - |
| 1965 | $270 | - | $305 | - |
| 1964 | $244.3 | - | $297.3 | - |
| 1963 | $188.2 | - | $353 | - |
| 1962 | $189 | - | $282.3 | - |
| 1961 | $188.2 | - | $281.7 | - |
| 1960 | - | - | $238.3 | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/mauritius | CC BY
Mauritania's GDP per capita is $2,198, ranking 156/197, compared to $12,991 in Mauritius, ranking 80/197. Adjusted for purchasing power (GDP per capita PPP), Mauritania ranks 147th at $7,369, while Mauritius ranks 71st at $31,840.
Economic indicators
|
Mauritania
|
Mauritius
|
|
|---|---|---|
| Gross domestic product |
$11.7B
2025 |
$16.2B
2025 |
| GDP rank |
153/197
2025 |
144/197
2025 |
| GDP growth |
4.03%
2024-2025 |
3.15%
2024-2025 |
| GDP per capita |
$2,198
2025 |
$12,991
2025 |
| GDP per capita rank |
156/197
2025 |
80/197
2025 |
| GDP per capita, PPP |
$7,369
2024 |
$31,840
2024 |
| GDP per capita PPP rank |
147/197
2024 |
71/197
2024 |
| Government debt |
$4.68B
2025 |
$14B
2025 |
| Debt-to-GDP ratio |
40.1%
2025 |
86.5%
2025 |
| Government debt per person |
$881
2025 |
$11,233
2025 |
| Government debt per person rank |
147/185
2025 |
55/185
2025 |
| Average annual personal income after taxes |
$2,242
2026 |
$8,169
2026 |
| Market capitalization of domestic companies | n/a |
$8.89B
2025 |
| Income share by richest 10% |
24.6%
2019 |
29.9%
2017 |
| Income share by poorest 10% |
3.1%
2019 |
2.9%
2017 |
| Government expenditure, % of GDP |
23.4%
2025 |
31.4%
2025 |
| Consumer prices inflation |
1.55%
2024-2025 |
3.67%
2024-2025 |
| Central bank interest rate | n/a |
4.5%
2025 |
| Unemployment rate |
10.4%
2019 |
5.21%
2024 |
| Population |
5539189
|
1240721
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Mauritania
|
Mauritius
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2025 | 23.4% | 40.1% | 31.4% | 86.5% |
| 2024 | 23.6% | 45.1% | 32.6% | 86.1% |
| 2023 | 24.8% | 48.6% | 28.5% | 81.5% |
| 2022 | 28.7% | 50.3% | 27.6% | 81.8% |
| 2021 | 20.8% | 54.5% | 28.3% | 86.1% |
| 2020 | 18.5% | 56.5% | 32.1% | 91.9% |
| 2019 | 17.8% | 57.7% | 30.2% | 81.1% |
| 2018 | 19% | 59.2% | 23.9% | 63.1% |
| 2017 | 20.3% | 55.7% | 23.6% | 61.3% |
| 2016 | 20.8% | 57.6% | 23.3% | 62.6% |
| 2015 | 25.7% | 59.9% | 23.7% | 63% |
| 2014 | 23.9% | 49.5% | 22.5% | 59.1% |
| 2013 | 20.1% | 40.7% | 23.4% | 56.5% |
| 2012 | 21.5% | 39.3% | 21.9% | 54.2% |
| 2011 | 17% | 38.8% | 23% | 54.9% |
| 2010 | 17.3% | 43.9% | 23.2% | 54.4% |
| 2009 | 19.6% | 54.3% | 24.5% | 56.8% |
| 2008 | 19.8% | 57.2% | 22.4% | 48.8% |
| 2007 | 19.7% | 61.5% | 20.4% | 48.8% |
| 2006 | 19% | 38% | 20.7% | 55.3% |
| 2005 | 21.3% | 71.1% | 21.8% | 58.3% |
| 2004 | 23.9% | 22% | 21.9% | 59.4% |
| 2003 | - | 22.9% | 22.2% | 66.9% |
| 2002 | - | 59.5% | 22% | 63% |
| 2001 | - | 63.5% | 21.5% | 58.2% |
| 2000 | - | 55.5% | 21.2% | 56.9% |
| 1999 | - | - | 25.9% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1999–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/mauritius | CC BY
In 2025, Mauritania's government spending was $2.73B, accounting for 23.4% of its GDP, while Mauritius spent $5.07B, or 31.4% of GDP.
Debt-to-GDP ratio is 40.1% in Mauritania and 86.5% in Mauritius, ranking 134/185 and 34/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Mauritania
|
Mauritius
|
|
| 2025 | -0.3% | -3.69% |
| 2024 | -1.35% | -6.84% |
| 2023 | -2.45% | -4.48% |
| 2022 | -3.09% | -3.15% |
| 2021 | 2.6% | -4.08% |
| 2020 | 2.78% | -10.5% |
| 2019 | 2.65% | -8.19% |
| 2018 | 3.23% | -2.15% |
| 2017 | 0.53% | -1.62% |
| 2016 | 0.13% | -2.74% |
| 2015 | -2.44% | -3.48% |
| 2014 | -2.64% | -3.05% |
| 2013 | -0.66% | -3.3% |
| 2012 | 1.67% | -1.73% |
| 2011 | 0.07% | -3% |
| 2010 | -0.45% | -2.96% |
| 2009 | -3.59% | -3.32% |
| 2008 | -3.32% | -2.63% |
| 2007 | -1.38% | -2.92% |
| 2006 | 2.05% | -3.86% |
| 2005 | -3.16% | -4.2% |
| 2004 | -3.06% | -4.22% |
| 2003 | - | -4.55% |
| 2002 | - | -4.89% |
| 2001 | - | -5.32% |
| 2000 | - | -4.19% |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (2000–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/mauritius | CC BY
In 2025, Mauritania's government deficit, the difference between spending and revenue, was $34.8M, equivalent to 0.3% of GDP. This compares to Mauritius' deficit of $596M, or 3.69% of GDP.
Over the past 22 years, Mauritania recorded a fiscal deficit in 13 of those years, while Mauritius ran a deficit in 22 years. On average, Mauritania posted an annual deficit equal to 0.55% of GDP, compared to deficit of 3.91% of GDP for Mauritius.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Mauritania
|
Mauritius
|
|
| 2025 | 1.55% | 3.67% |
| 2024 | 2.49% | 3.6% |
| 2023 | 4.95% | 7.05% |
| 2022 | 9.53% | 10.8% |
| 2021 | 3.57% | 4.03% |
| 2020 | 2.39% | 2.58% |
| 2019 | 2.3% | 0.41% |
| 2018 | 3.07% | 3.22% |
| 2017 | 2.25% | 3.67% |
| 2016 | 1.47% | 0.98% |
| 2015 | 3.25% | 1.29% |
| 2014 | 3.53% | 3.22% |
| 2013 | 4.13% | 3.54% |
| 2012 | 4.9% | 3.85% |
| 2011 | 5.69% | 6.52% |
| 2010 | 6.28% | 2.93% |
| 2009 | 2.22% | 2.52% |
| 2008 | 7.35% | 9.73% |
| 2007 | 7.25% | 8.83% |
| 2006 | 6.24% | 8.91% |
| 2005 | 12.1% | 4.94% |
| 2004 | 10.4% | 4.71% |
| 2003 | 5.15% | 3.92% |
| 2002 | 3.9% | 6.42% |
| 2001 | 4.71% | 5.39% |
| 2000 | 3.25% | 4.2% |
| 1999 | 4.07% | 6.91% |
| 1998 | 8.03% | 6.81% |
| 1997 | 4.63% | 6.83% |
Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/mauritius | CC BY
Over the past 29 years, Mauritania has recorded an average annual inflation rate of 4.85%, compared with 4.88% in Mauritius. In 2025, inflation was 1.55% in Mauritania and 3.67% in Mauritius.
Top exports between countries
|
Mauritania
|
|
|---|---|
| Export category | Export value |
| Metals | $46K |
| Animal & marine products | $37K |
| Machinery & equipment | $15K |
|
Mauritius
|
|
|---|---|
| Export category | Export value |
| Chemicals & pharma | $888K |
| Machinery & equipment | $3K |
| Metals | $1K |
| Textiles & consumer goods | $1K |
| Wood & paper products | $1K |
Balance of trade
|
Mauritania
|
Mauritius
|
|
|---|---|---|
|
Current account balance
|
-$1.04B
2024 |
-$1.05B
2024 |
| Current account balance ranking |
118/190
2024 |
119/190
2024 |
| Current account balance, % of GDP |
-9.55%
2024 |
-7.03%
2024 |
| Goods imports |
$4.32B
2024 |
$6.35B
2024 |
| Goods exports |
$3.83B
2024 |
$2.37B
2024 |
| Service imports |
$1.05B
2024 |
$2.28B
2024 |
| Service exports |
$230M
2024 |
$4.19B
2024 |
| Imports of goods and services, % of GDP |
54.2%
2025 |
74.9%
2025 |
| Exports of goods and services, % of GDP |
39.9%
2025 |
65%
2025 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Mauritania
|
Mauritius
|
|
|---|---|---|
| Economic freedom | 53.9 | 73 |
| Economic freedom ranking | 136/197 | 26/197 |
| Property rights | 32.6 | 83.9 |
| Government integrity | 24.5 | 53.4 |
| Judicial effectiveness | 26.4 | 80.7 |
| Tax burden | 75.5 | 89.6 |
| Government spending | 80.2 | 73.8 |
| Fiscal health | 87.9 | 45.5 |
| Business freedom | 38.7 | 81.5 |
| Labor freedom | 53.6 | 69.6 |
| Monetary freedom | 77.8 | 70.7 |
| Trade freedom | 59.6 | 87 |
| Investment freedom | 50 | 70 |
| Financial freedom | 40 | 70 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Mauritania
|
Mauritius
|
|
| 2026 | 53.9 | 73 |
| 2025 | 54.9 | 75 |
| 2024 | 55.3 | 71.5 |
| 2023 | 55.3 | 70.6 |
| 2022 | 55.3 | 70.9 |
| 2021 | 56.1 | 77 |
| 2020 | 55.3 | 74.9 |
| 2019 | 55.7 | 73 |
| 2018 | 54 | 75.1 |
| 2017 | 54.4 | 74.7 |
| 2016 | 54.8 | 74.7 |
| 2015 | 53.3 | 76.4 |
| 2014 | 53.2 | 76.5 |
| 2013 | 52.3 | 76.9 |
| 2012 | 53 | 77 |
| 2011 | 52.1 | 76.2 |
| 2010 | 52 | 76.3 |
| 2009 | 53.9 | 74.3 |
| 2008 | 55.2 | 72.6 |
| 2007 | 53.6 | 69.4 |
| 2006 | 55.7 | 67.4 |
| 2005 | 59.4 | 67.2 |
| 2004 | 61.8 | 64.3 |
| 2003 | 59 | 64.4 |
| 2002 | 52.5 | 67.7 |
| 2001 | 48.5 | 66.4 |
| 2000 | 46 | 67.2 |
| 1999 | 42.8 | 68.5 |
| 1998 | 43.7 | - |
| 1997 | 47 | - |
| 1996 | 45.5 | - |
Data sources: The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/mauritius | CC BY
The Economic Freedom Index for Mauritania is 53.9, ranking 136/197, compared to 73 for Mauritius, ranking 26/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Mauritania
|
Mauritius
|
|
|---|---|---|
| Services, % of GDP |
42.4%
2025 |
63.9%
2025 |
| Industry, % of GDP |
29.7%
2025 |
17.7%
2025 |
| Agriculture, forestry, and fishing, % of GDP |
20%
2025 |
4.62%
2025 |
|
GNI, Atlas method
|
$11.8B
2025 |
$17.5B
2025 |
| GNI per capita, PPP |
$7,640
2025 |
$37,000
2025 |
| Total reserves including gold |
$2.04B
2021 |
$10.3B
2025 |
| Total reserves ranking |
127/177
2021 |
77/177
2025 |
|
Net foreign direct investment
|
-$1.44B
2024 |
$963M
2024 |
|
Net inflows of foreign direct investment
|
$1.44B
2024 |
$681M
2024 |
|
Net outflows of foreign direct investment
|
$3.9M
2024 |
$38.3M
2024 |
|
Servicing debt to the IMF, % of GNI
|
3.83%
2024 |
10.1%
2024 |
| Poverty at national poverty lines |
31.8%
2019 |
8.4%
2023 |
|
Gross capital formation, % of GDP
|
44.3%
2025 |
19.9%
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/mauritania/mauritius | CC BY
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Data sources:
- World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Fiscal Monitor (1999–2025, retrieved 2026-07-08)
- The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-07-08)
- U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
- TradeMap (2020–2025, retrieved 2026-07-08)
- United Nations | World Population Prospects (2026, retrieved 2026-07-08)
- LivingCost (2026, retrieved 2026-07-08)
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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.