Mauritania has a GDP of $11.7B compared to $1.75B for the Solomon Islands, ranking 153/197 and 183/197 by economy size, respectively.
Mauritania has $4.68B in government debt (40.1% of GDP), compared to $501M (28.7% of GDP) in the Solomon Islands.
Mauritania vs Solomon Islands GDP by year
| Year | GDP, current $ | |
|---|---|---|
Mauritania
|
Solomon Islands
|
|
| 2025 | $11,679,910,946 | $1,749,572,443 |
| 2024 | $10,879,212,033 | $1,583,964,704 |
| 2023 | $10,687,541,640 | $1,506,124,566 |
| 2022 | $9,562,497,461 | $1,466,670,930 |
| 2021 | $9,221,044,667 | $1,558,312,104 |
| 2020 | $8,260,567,357 | $1,536,143,428 |
| 2019 | $7,894,764,886 | $1,619,150,564 |
| 2018 | $7,475,471,310 | $1,615,473,250 |
| 2017 | $6,812,472,965 | $1,469,790,526 |
| 2016 | $6,407,900,701 | $1,379,486,291 |
| 2015 | $6,182,303,677 | $1,307,908,814 |
| 2014 | $6,615,483,550 | $1,335,576,763 |
| 2013 | $7,230,646,063 | $1,285,905,958 |
| 2012 | $6,728,208,836 | $1,185,217,634 |
| 2011 | $6,764,627,746 | $1,063,898,227 |
| 2010 | $5,628,878,798 | $898,128,551 |
| 2009 | $4,714,595,548 | $805,557,289 |
| 2008 | $5,206,437,194 | $776,335,523 |
| 2007 | $4,346,212,355 | $695,291,218 |
| 2006 | $3,919,577,286 | $617,257,458 |
| 2005 | $2,936,019,526 | $552,881,357 |
| 2004 | $2,362,501,023 | $468,000,121 |
| 2003 | $2,051,147,607 | $417,666,639 |
| 2002 | $1,777,057,481 | $346,406,739 |
| 2001 | $1,746,063,558 | $409,508,553 |
| 2000 | $1,779,520,886 | $419,842,674 |
| 1999 | $1,985,922,776 | $488,024,514 |
| 1998 | $2,032,347,665 | $457,579,840 |
| 1997 | $2,071,996,564 | $526,554,006 |
| 1996 | $2,132,087,009 | $510,586,430 |
| 1995 | $2,091,726,101 | $469,443,202 |
| 1994 | $1,944,876,755 | $402,837,005 |
| 1993 | $1,847,353,211 | $300,746,361 |
| 1992 | $2,164,298,425 | $269,034,596 |
| 1991 | $2,133,692,697 | $227,540,473 |
| 1990 | $1,506,914,408 | $214,877,667 |
| 1989 | $1,450,647,019 | $172,882,411 |
| 1988 | $1,414,951,290 | $176,494,394 |
| 1987 | $1,344,664,725 | $155,128,542 |
| 1986 | $1,186,628,778 | $147,620,048 |
| 1985 | $1,009,723,326 | $165,524,943 |
| 1984 | $1,074,373,230 | $181,570,474 |
| 1983 | $1,165,171,263 | $181,220,399 |
| 1982 | $1,108,776,653 | $192,902,019 |
| 1981 | $1,105,494,682 | $193,750,541 |
| 1980 | $1,047,925,106 | $182,852,107 |
| 1979 | $951,900,945 | $151,276,496 |
| 1978 | $804,629,877 | $111,027,427 |
| 1977 | $799,030,017 | $93,145,283 |
| 1976 | $775,045,517 | $83,100,834 |
| 1975 | $703,377,837 | $74,620,320 |
| 1974 | $613,010,553 | $84,539,332 |
| 1973 | $493,237,876 | $55,272,109 |
| 1972 | $391,669,449 | $40,606,712 |
| 1971 | $335,568,907 | $50,056,883 |
| 1970 | $309,405,316 | - |
| 1969 | $295,062,308 | $28,606,411 |
| 1968 | $311,395,937 | $28,084,253 |
| 1967 | $282,615,310 | $25,203,524 |
| 1966 | $266,533,605 | - |
| 1965 | $255,340,475 | - |
| 1964 | $224,495,744 | - |
| 1963 | $168,186,297 | - |
| 1962 | $164,271,558 | - |
| 1961 | $159,213,430 | - |
Data sources: World Bank | Economy & Growth (1961–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/solomon-islands | CC BY 
GDP per capita in Mauritania vs Solomon Islands by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Mauritania
|
Solomon Islands
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2025 | $2,198 | - | $2,086 | - |
| 2024 | $2,105 | $7,369 | $1,934 | $2,675 |
| 2023 | $2,128 | $6,966 | $1,883 | $2,597 |
| 2022 | $1,961 | $6,485 | $1,878 | $2,496 |
| 2021 | $1,947 | $5,837 | $2,043 | $2,450 |
| 2020 | $1,796 | $5,741 | $2,063 | $2,405 |
| 2019 | $1,767 | $5,610 | $2,224 | $2,512 |
| 2018 | $1,723 | $5,429 | $2,278 | $2,494 |
| 2017 | $1,618 | $5,353 | $2,144 | $2,454 |
| 2016 | $1,568 | $4,683 | $2,083 | $2,421 |
| 2015 | $1,559 | $3,978 | $2,045 | $2,354 |
| 2014 | $1,719 | $3,865 | $2,165 | $2,377 |
| 2013 | $1,936 | $3,831 | $2,161 | $2,394 |
| 2012 | $1,859 | $3,465 | $2,066 | $2,320 |
| 2011 | $1,931 | $3,271 | $1,924 | $2,306 |
| 2010 | $1,660 | $3,178 | $1,685 | $2,182 |
| 2009 | $1,435 | $3,159 | $1,555 | $2,021 |
| 2008 | $1,636 | $3,236 | $1,526 | $1,989 |
| 2007 | $1,405 | $3,278 | $1,390 | $1,869 |
| 2006 | $1,301 | $3,342 | $1,256 | $1,786 |
| 2005 | $999 | $2,809 | $1,144 | $1,693 |
| 2004 | $824 | $2,570 | $986 | $1,556 |
| 2003 | $732 | $2,447 | $896 | $1,433 |
| 2002 | $649 | $2,296 | $757 | $1,344 |
| 2001 | $652 | $2,280 | $912 | $1,387 |
| 2000 | $681 | $2,304 | $953 | $1,503 |
| 1999 | $781 | $2,411 | $1,134 | $1,754 |
| 1998 | $821 | $2,355 | $1,092 | $1,785 |
| 1997 | $859 | $2,325 | $1,292 | $1,793 |
| 1996 | $904 | $2,436 | $1,289 | $1,830 |
| 1995 | $905 | $2,306 | $1,220 | $1,820 |
| 1994 | $865 | $2,114 | $1,078 | $1,668 |
| 1993 | $850 | $2,209 | $829 | $1,556 |
| 1992 | $1,036 | $2,122 | $764 | $1,505 |
| 1991 | $1,062 | $2,116 | $666 | $1,346 |
| 1990 | $772 | $2,070 | $648 | $1,266 |
| 1989 | $762 | - | $538 | - |
| 1988 | $762 | - | $567 | - |
| 1987 | $746 | - | $515 | - |
| 1986 | $677 | - | $506 | - |
| 1985 | $593 | - | $586 | - |
| 1984 | $650 | - | $665 | - |
| 1983 | $725 | - | $686 | - |
| 1982 | $710 | - | $756 | - |
| 1981 | $729 | - | $786 | - |
| 1980 | $711 | - | $768 | - |
| 1979 | $664 | - | $658 | - |
| 1978 | $578 | - | $500 | - |
| 1977 | $590 | - | $434 | - |
| 1976 | $589 | - | $401 | - |
| 1975 | $551 | - | $372 | - |
| 1974 | $494 | - | $433 | - |
| 1973 | $410 | - | $291.3 | - |
| 1972 | $335 | - | $219.5 | - |
| 1971 | $296 | - | $277.1 | - |
| 1970 | $281.3 | - | - | - |
| 1969 | $276.6 | - | $165.9 | - |
| 1968 | $301 | - | $166.9 | - |
| 1967 | $281.5 | - | $153.5 | - |
| 1966 | $273.6 | - | - | - |
| 1965 | $270 | - | - | - |
| 1964 | $244.3 | - | - | - |
| 1963 | $188.2 | - | - | - |
| 1962 | $189 | - | - | - |
| 1961 | $188.2 | - | - | - |
Data sources: World Bank | Economy & Growth (1961–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/solomon-islands | CC BY
Mauritania's GDP per capita is $2,198, ranking 156/197, compared to $2,086 in the Solomon Islands, ranking 157/197. Adjusted for purchasing power (GDP per capita PPP), Mauritania ranks 147th at $7,369, while the Solomon Islands ranks 183rd at $2,675.
Economic indicators
|
Mauritania
|
Solomon Islands
|
|
|---|---|---|
| Gross domestic product |
$11.7B
2025 |
$1.75B
2025 |
| GDP rank |
153/197
2025 |
183/197
2025 |
| GDP growth |
4.03%
2024-2025 |
3.62%
2024-2025 |
| GDP per capita |
$2,198
2025 |
$2,086
2025 |
| GDP per capita rank |
156/197
2025 |
157/197
2025 |
| GDP per capita, PPP |
$7,369
2024 |
$2,675
2024 |
| GDP per capita PPP rank |
147/197
2024 |
183/197
2024 |
| Government debt |
$4.68B
2025 |
$501M
2025 |
| Debt-to-GDP ratio |
40.1%
2025 |
28.7%
2025 |
| Government debt per person |
$881
2025 |
$598
2025 |
| Government debt per person rank |
147/185
2025 |
162/185
2025 |
| Average annual personal income after taxes |
$2,242
2026 |
$1,986
2026 |
| Income share by richest 10% |
24.6%
2019 |
29.2%
2012 |
| Income share by poorest 10% |
3.1%
2019 |
2.8%
2012 |
| Government expenditure, % of GDP |
23.4%
2025 |
40.6%
2025 |
| Consumer prices inflation |
1.55%
2024-2025 |
3.36%
2024-2025 |
| Unemployment rate |
10.4%
2019 |
0.69%
2013 |
| Population |
5539189
|
868694
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Mauritania
|
Solomon Islands
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2025 | 23.4% | 40.1% | 40.6% | 28.7% |
| 2024 | 23.6% | 45.1% | 39.6% | 26.1% |
| 2023 | 24.8% | 48.6% | 44.2% | 22.3% |
| 2022 | 28.7% | 50.3% | 43.5% | 16.5% |
| 2021 | 20.8% | 54.5% | 36.9% | 16.1% |
| 2020 | 18.5% | 56.5% | 40.4% | 9.15% |
| 2019 | 17.8% | 57.7% | 35.6% | 7.82% |
| 2018 | 19% | 59.2% | 34.8% | 7.95% |
| 2017 | 20.3% | 55.7% | 40.4% | 8.77% |
| 2016 | 20.8% | 57.6% | 39.6% | 7.54% |
| 2015 | 25.7% | 59.9% | 41.5% | 7.88% |
| 2014 | 23.9% | 49.5% | 39.8% | 10.1% |
| 2013 | 20.1% | 40.7% | 41.8% | 11.6% |
| 2012 | 21.5% | 39.3% | 29.4% | 13.3% |
| 2011 | 17% | 38.8% | 26.7% | 18.1% |
| 2010 | 17.3% | 43.9% | 22.6% | 21.6% |
| 2009 | 19.6% | 54.3% | 22.7% | 17.2% |
| 2008 | 19.8% | 57.2% | 24.3% | 26.1% |
| 2007 | 19.7% | 61.5% | 21.1% | 29.5% |
| 2006 | 19% | 38% | 17.4% | 36.9% |
| 2005 | 21.3% | 71.1% | 14.7% | 38.5% |
| 2004 | 23.9% | 22% | 12.5% | 49.4% |
| 2003 | - | 22.9% | 12.6% | 51.8% |
| 2002 | - | 59.5% | 14.1% | 55.5% |
| 2001 | - | 63.5% | 15.3% | 44.6% |
| 2000 | - | 55.5% | 15.8% | 37.4% |
| 1999 | - | - | 15.8% | 35.4% |
| 1998 | - | - | 13.1% | 33.3% |
| 1997 | - | - | 16.3% | 21.9% |
| 1996 | - | - | 20.4% | - |
| 1995 | - | - | 20.8% | - |
| 1994 | - | - | 25.5% | - |
| 1993 | - | - | 28.1% | - |
| 1992 | - | - | 29.6% | - |
| 1991 | - | - | 33.2% | - |
| 1990 | - | - | 25.4% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/solomon-islands | CC BY
In 2025, Mauritania's government spending was $2.73B, accounting for 23.4% of its GDP, while the Solomon Islands spent $711M, or 40.6% of GDP.
Debt-to-GDP ratio is 40.1% in Mauritania and 28.7% in the Solomon Islands, ranking 134/185 and 158/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Mauritania
|
Solomon Islands
|
|
| 2025 | -0.3% | -3.24% |
| 2024 | -1.35% | -2.09% |
| 2023 | -2.45% | -4.13% |
| 2022 | -3.09% | -2.7% |
| 2021 | 2.6% | -1.82% |
| 2020 | 2.78% | -2.44% |
| 2019 | 2.65% | -1.52% |
| 2018 | 3.23% | 1.49% |
| 2017 | 0.53% | -2.27% |
| 2016 | 0.13% | -3.56% |
| 2015 | -2.44% | 0.81% |
| 2014 | -2.64% | 2.13% |
| 2013 | -0.66% | 3.57% |
| 2012 | 1.67% | 4.63% |
| 2011 | 0.07% | 6.14% |
| 2010 | -0.45% | 5.67% |
| 2009 | -3.59% | 2.15% |
| 2008 | -3.32% | 1.75% |
| 2007 | -1.38% | 13.7% |
| 2006 | 2.05% | 11.3% |
| 2005 | -3.16% | 11.5% |
| 2004 | -3.06% | 14.5% |
| 2003 | - | 8.91% |
| 2002 | - | -3.67% |
| 2001 | - | -2.02% |
| 2000 | - | -2.47% |
| 1999 | - | -0.27% |
| 1998 | - | 4.25% |
| 1997 | - | 1.8% |
| 1996 | - | 3.15% |
| 1995 | - | 2.69% |
| 1994 | - | 3.65% |
| 1993 | - | 2.07% |
| 1992 | - | 3.48% |
| 1991 | - | 0.12% |
| 1990 | - | 0.49% |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/solomon-islands | 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 the Solomon Islands' deficit of $56.6M, or 3.24% of GDP.
Over the past 22 years, Mauritania recorded a fiscal deficit in 13 of those years, while the Solomon Islands ran a deficit in 9 years. On average, Mauritania posted an annual deficit equal to 0.55% of GDP, compared to surplus of 2.53% of GDP for the Solomon Islands.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Mauritania
|
Solomon Islands
|
|
| 2025 | 1.55% | 3.36% |
| 2024 | 2.49% | 4.32% |
| 2023 | 4.95% | 5.89% |
| 2022 | 9.53% | 5.52% |
| 2021 | 3.57% | -0.12% |
| 2020 | 2.39% | 2.96% |
| 2019 | 2.3% | 1.63% |
| 2018 | 3.07% | 3.46% |
| 2017 | 2.25% | 0.49% |
| 2016 | 1.47% | 0.51% |
| 2015 | 3.25% | -0.57% |
| 2014 | 3.53% | 5.17% |
| 2013 | 4.13% | 5.39% |
| 2012 | 4.9% | 5.91% |
| 2011 | 5.69% | 7.34% |
| 2010 | 6.28% | 1.05% |
| 2009 | 2.22% | 7.09% |
| 2008 | 7.35% | 17.3% |
| 2007 | 7.25% | 7.67% |
| 2006 | 6.24% | 11.2% |
| 2005 | 12.1% | 7.33% |
| 2004 | 10.4% | 6.99% |
| 2003 | 5.15% | 8.27% |
| 2002 | 3.9% | 10.9% |
| 2001 | 4.71% | 6.93% |
| 2000 | 3.25% | 7.89% |
| 1999 | 4.07% | 8.02% |
| 1998 | 8.03% | 12.4% |
| 1997 | 4.63% | 8.08% |
Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).
GeoRank.org/economy/mauritania/solomon-islands | CC BY
Over the past 29 years, Mauritania has recorded an average annual inflation rate of 4.85%, compared with 5.95% in the Solomon Islands. In 2025, inflation was 1.55% in Mauritania and 3.36% in the Solomon Islands.
Balance of trade
|
Mauritania
|
Solomon Islands
|
|
|---|---|---|
|
Current account balance
|
-$1.04B
2024 |
-$66.2M
2024 |
| Current account balance ranking |
118/190
2024 |
78/190
2024 |
| Current account balance, % of GDP |
-9.55%
2024 |
-4.18%
2024 |
| Goods imports |
$4.32B
2024 |
$609M
2024 |
| Goods exports |
$3.83B
2024 |
$510M
2024 |
| Service imports |
$1.05B
2024 |
$248M
2024 |
| Service exports |
$230M
2024 |
$133M
2024 |
| Imports of goods and services, % of GDP |
54.2%
2025 |
70.8%
2024 |
| Exports of goods and services, % of GDP |
39.9%
2025 |
40.6%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Mauritania
|
Solomon Islands
|
|
|---|---|---|
| Economic freedom | 53.9 | 53.7 |
| Economic freedom ranking | 136/197 | 137/197 |
| Property rights | 32.6 | 55.8 |
| Government integrity | 24.5 | 42.7 |
| Judicial effectiveness | 26.4 | 59.1 |
| Tax burden | 75.5 | 71.3 |
| Government spending | 80.2 | 54.6 |
| Fiscal health | 87.9 | 83.3 |
| Business freedom | 38.7 | 52.3 |
| Labor freedom | 53.6 | 60.4 |
| Monetary freedom | 77.8 | 76.5 |
| Trade freedom | 59.6 | 43.6 |
| Investment freedom | 50 | 15 |
| Financial freedom | 40 | 30 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Mauritania
|
Solomon Islands
|
|
| 2026 | 53.9 | 53.7 |
| 2025 | 54.9 | 56.3 |
| 2024 | 55.3 | 55 |
| 2023 | 55.3 | 56.9 |
| 2022 | 55.3 | 56.5 |
| 2021 | 56.1 | 56.5 |
| 2020 | 55.3 | 52.9 |
| 2019 | 55.7 | 54.6 |
| 2018 | 54 | 57.5 |
| 2017 | 54.4 | 55 |
| 2016 | 54.8 | 47 |
| 2015 | 53.3 | 47 |
| 2014 | 53.2 | 46.2 |
| 2013 | 52.3 | 45 |
| 2012 | 53 | 46.2 |
| 2011 | 52.1 | 45.9 |
| 2010 | 52 | 42.9 |
| 2009 | 53.9 | 46 |
| 2008 | 55.2 | - |
| 2007 | 53.6 | - |
| 2006 | 55.7 | - |
| 2005 | 59.4 | - |
| 2004 | 61.8 | - |
| 2003 | 59 | - |
| 2002 | 52.5 | - |
| 2001 | 48.5 | - |
| 2000 | 46 | - |
| 1999 | 42.8 | - |
| 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/solomon-islands | CC BY
The Economic Freedom Index for Mauritania is 53.9, ranking 136/197, compared to 53.7 for the Solomon Islands, ranking 137/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Mauritania
|
Solomon Islands
|
|
|---|---|---|
| Services, % of GDP |
42.4%
2025 |
46.9%
2024 |
| Industry, % of GDP |
29.7%
2025 |
23.4%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
20%
2025 |
29.7%
2024 |
|
GNI, Atlas method
|
$11.8B
2025 |
$1.7B
2025 |
| GNI per capita, PPP |
$7,640
2025 |
$2,790
2025 |
| Total reserves including gold |
$2.04B
2021 |
$686M
2024 |
| Total reserves ranking |
127/177
2021 |
148/177
2024 |
|
Net foreign direct investment
|
-$1.44B
2024 |
$19.9M
2024 |
|
Net inflows of foreign direct investment
|
$1.44B
2024 |
$33M
2024 |
|
Net outflows of foreign direct investment
|
$3.9M
2024 |
$52.9M
2024 |
|
Servicing debt to the IMF, % of GNI
|
3.83%
2024 |
1.64%
2024 |
| Poverty at national poverty lines |
31.8%
2019 |
12.7%
2012 |
|
Gross capital formation, % of GDP
|
44.3%
2025 |
19.5%
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/mauritania/solomon-islands | CC BY
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Data sources:
- World Bank | Economy & Growth (1961–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, 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)
- 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.