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Economy of Mozambique vs Netherlands compared: GDP & Debt

Updated on by Georank

Mozambique has a GDP of $22.3B compared to $1.33T for the Netherlands, ranking 127/197 and 18/197 by economy size, respectively.

Mozambique has $22.9B in government debt (102.5% of GDP), compared to $578B (43.3% of GDP) in the Netherlands.

Mozambique vs Netherlands GDP by year

Mozambique
Netherlands
1x
Year GDP, current $
Mozambique Netherlands
2025 $22,337,997,046 $1,332,767,651,100
2024 $22,752,244,245 $1,213,936,238,063
2023 $20,927,498,317 $1,135,475,867,551
2022 $18,884,232,599 $1,046,540,797,549
2021 $16,168,055,475 $1,054,472,123,450
2020 $14,235,420,174 $932,560,861,701
2019 $15,512,759,047 $928,903,005,576
2018 $15,017,358,953 $929,733,599,797
2017 $13,264,640,646 $848,233,537,846
2016 $12,069,051,237 $797,163,949,290
2015 $16,208,985,770 $775,743,675,303
2014 $17,978,246,586 $901,556,501,756
2013 $17,198,073,057 $883,951,539,007
2012 $16,688,114,144 $845,689,017,066
2011 $14,619,279,989 $913,140,741,333
2010 $11,411,894,724 $852,464,982,433
2009 $12,263,894,790 $878,954,223,140
2008 $12,920,340,965 $957,901,566,041
2007 $10,811,456,006 $853,499,460,873
2006 $9,509,835,537 $737,593,995,289
2005 $8,868,504,900 $688,133,699,636
2004 $7,937,255,565 $661,224,886,143
2003 $6,583,526,861 $582,435,617,082
2002 $5,950,769,427 $475,529,972,123
2001 $5,650,154,067 $432,536,219,669
2000 $5,930,685,215 $417,649,282,154
1999 $6,285,219,691 $447,778,514,140
1998 $5,551,118,149 $438,612,530,549
1997 $4,873,663,775 $417,506,211,882
1996 $4,030,146,135 $451,372,549,020
1995 $3,061,646,174 $452,967,334,614
1994 $2,958,108,170 $379,688,232,232
1993 $2,883,161,897 $354,070,495,966
1992 $2,798,696,511 $363,497,050,125
1991 $3,854,856,435 $327,982,316,124
1990 - $318,799,003,994
1989 - $258,716,904,292
1988 - $262,295,966,105
1987 - $245,406,949,521
1986 - $201,157,708,221
1985 - $144,057,523,222
1984 - $144,124,462,912
1983 - $153,671,294,109
1982 - $158,712,765,536
1981 - $164,375,775,854
1980 - $195,439,301,707
1979 - $179,933,827,310
1978 - $156,089,077,205
1977 - $127,203,923,857
1976 - $109,329,386,564
1975 - $100,397,061,694
1974 - $87,371,810,804
1973 - $71,946,639,603
1972 - $54,787,070,173
1971 - $44,644,730,576
1970 - $38,220,884,519
1969 - $34,086,038,090
1968 - $30,097,635,751
1967 - $27,143,828,099
1966 - $24,741,480,717
1965 - $22,721,869,808
1964 - $20,232,048,553
1963 - $17,193,744,109
1962 - $15,847,582,341
1961 - $14,599,836,396
1960 - $13,282,979,015

Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).

GeoRank.org/economy/mozambique/netherlands | CC BY

GDP per capita in Mozambique vs Netherlands by year

Mozambique
GDP per capita

GDP per capita, PPP
Netherlands
GDP per capita

GDP per capita, PPP
1x
Year Current $
Mozambique Netherlands
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $627 - $73,684 -
2024 $657 $1,705 $67,465 $86,174
2023 $622 $1,678 $63,516 $81,729
2022 $578 $1,582 $59,123 $78,630
2021 $510 $1,457 $60,142 $68,574
2020 $462 $1,412 $53,468 $62,597
2019 $519 $1,389 $53,555 $62,345
2018 $518 $1,326 $53,955 $58,819
2017 $471 $1,283 $49,514 $56,038
2016 $441 $1,379 $46,809 $53,162
2015 $611 $1,318 $45,794 $50,957
2014 $697 $1,166 $53,457 $49,751
2013 $687 $1,114 $52,602 $49,622
2012 $686 $1,076 $50,474 $47,653
2011 $618 $1,064 $54,702 $47,004
2010 $496 $1,000 $51,306 $45,301
2009 $548 $951 $53,172 $44,959
2008 $592 $916 $58,247 $46,714
2007 $508 $862 $52,101 $44,203
2006 $457 $798 $45,124 $41,208
2005 $437 $721 $42,165 $37,778
2004 $400 $673 $40,611 $35,961
2003 $339 $620 $35,897 $34,286
2002 $314 $580 $29,447 $34,568
2001 $305 $533 $26,956 $33,259
2000 $327 $472 $26,225 $31,895
1999 $354 $468 $28,319 $29,316
1998 $320 $422 $27,924 $27,749
1997 $287.5 $387 $26,745 $26,062
1996 $244.4 $350 $29,064 $24,564
1995 $191.8 $321 $29,301 $23,480
1994 $196.8 $326 $24,683 $22,414
1993 $205.2 $321 $23,156 $21,443
1992 $205.6 $292 $23,939 $20,831
1991 $288.7 $315 $21,764 $20,177
1990 - $296 $21,322 $19,203
1989 - - $17,423 -
1988 - - $17,771 -
1987 - - $16,734 -
1986 - - $13,804 -
1985 - - $9,941 -
1984 - - $9,992 -
1983 - - $10,696 -
1982 - - $11,089 -
1981 - - $11,537 -
1980 - - $13,812 -
1979 - - $12,817 -
1978 - - $11,196 -
1977 - - $9,180 -
1976 - - $7,937 -
1975 - - $7,346 -
1974 - - $6,450 -
1973 - - $5,353 -
1972 - - $4,110 -
1971 - - $3,384 -
1970 - - $2,931 -
1969 - - $2,647 -
1968 - - $2,364 -
1967 - - $2,155 -
1966 - - $1,986 -
1965 - - $1,848 -
1964 - - $1,668 -
1963 - - $1,437 -
1962 - - $1,342 -
1961 - - $1,254 -
1960 - - $1,156 -

Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).

GeoRank.org/economy/mozambique/netherlands | CC BY

Mozambique's GDP per capita is $627, ranking 193/197, compared to $73,684 in the Netherlands, ranking 12/197. Adjusted for purchasing power (GDP per capita PPP), Mozambique ranks 192nd at $1,705, while the Netherlands ranks 11th at $86,174.

Economic indicators

Mozambique Netherlands
Gross domestic product
$22.3B
2025
$1.33T
2025
GDP rank
127/197
2025
18/197
2025
GDP growth
-0.52%
2024-2025
1.78%
2024-2025
GDP per capita
$627
2025
$73,684
2025
GDP per capita rank
193/197
2025
12/197
2025
GDP per capita, PPP
$1,705
2024
$86,174
2024
GDP per capita PPP rank
192/197
2024
11/197
2024
Government debt
$22.9B
2025
$578B
2025
Debt-to-GDP ratio
102.5%
2025
43.3%
2025
Government debt per person
$643
2025
$31,942
2025
Government debt per person rank
158/185
2025
23/185
2025
Average annual personal income after taxes
$1,324
2026
$46,674
2026
Market capitalization of domestic companies n/a
$1.1T
2017
Number of millionaires n/a
1,294,000
2026
Number of billionaires n/a
13
2026
Income share by richest 10%
40.8%
2022
21.4%
2021
Income share by poorest 10%
1.7%
2022
3.6%
2021
Government expenditure, % of GDP
30.3%
2025
45.1%
2025
Consumer prices inflation
4.4%
2024-2025
3.26%
2024-2025
Central bank interest rate
9.25%
2026
n/a
Unemployment rate
6.79%
2022
3.9%
2025
Population
37173146
18243998

Spending and national debt comparison by year

Mozambique
Spending

Debt
Netherlands
Spending

Debt
1x
Year % of GDP
Mozambique Netherlands
Government spending Government debt Government spending Government debt
2025 30.3% 102.5% 45.1% 43.3%
2024 33.3% 91.4% 44.4% 43.7%
2023 33.3% 90.8% 44% 45.8%
2022 32.9% 100.4% 43.3% 48.4%
2021 32.1% 104.3% 45.9% 50.5%
2020 33.9% 120% 47.8% 53.4%
2019 28% 98.3% 42.1% 47.7%
2018 31.2% 105.5% 42.4% 51.6%
2017 28.6% 103.8% 42.8% 56%
2016 28.7% 124.8% 43.9% 60.9%
2015 32.2% 86% 45.3% 63.8%
2014 39.7% 63.4% 46.7% 67.2%
2013 31.7% 49.5% 47.5% 67.2%
2012 28.1% 36.7% 47.6% 65.7%
2011 28.9% 34.2% 47.8% 61.2%
2010 26.6% 38.6% 48.9% 58.9%
2009 25.7% 39.3% 48.4% 56.3%
2008 21.3% 32.8% 44.3% 54.4%
2007 20.9% 31.2% 43.3% 42.7%
2006 20.1% 40% 44% 45%
2005 17% 60.1% 43.4% 49.6%
2004 17.8% 50.8% 44.7% 50.1%
2003 18.6% 63.2% 45.8% 49.8%
2002 18.6% 63.4% 44.8% 48.7%
2001 20.8% 99.8% 44.1% 49.4%
2000 17.2% 95.8% 43.2% 52.2%
1999 15.6% 94.7% 44.3% 58.6%
1998 14.9% - 44.6% 62.7%
1997 16.5% - 45.7% 65.7%
1996 14.9% - 47.3% 71.2%
1995 18.8% - 53.9% 73%
1994 22.9% - 49.4% 73.5%
1993 20.7% - 50.9% 76.7%
1992 21.1% - 50.2% 75.6%
1991 17.3% - 49.6% 74.8%
1990 21% - 48.8% 75%
1989 27% - 54.5% 73.7%
1988 27% - 56.4% 73.7%
1987 22.9% - 58.5% 71.3%
1986 24.2% - 57% 68.9%
1985 21% - 57.3% 67.1%
1984 30.9% - 58.1% 61.9%
1983 35.3% - 59.1% 58.4%
1982 27% - 59.1% 52.4%
1981 23.8% - 56.8% 46.9%
1980 14.2% - 55.2% 43.6%
1979 - - 53.7% 39.5%
1978 - - 52.3% 38.1%
1977 - - 50.6% 34.9%
1976 - - 50.8% 35.2%
1975 - - 50.8% 36.1%
1974 - - 46.4% 36.3%
1973 - - 44.6% 38.1%
1972 - - 44.9% 41.3%
1971 - - 44.6% 43.7%
1970 - - 43.2% 46.1%
1969 - - 42.1% 48.2%
1968 - - 25.4% 54.4%
1967 - - 24.1% 55%
1966 - - 24.4% 55.6%
1965 - - 23.4% 55.8%
1964 - - 22.3% 57.1%
1963 - - 21.9% 61.7%
1962 - - 22.1% 63.8%
1961 - - 22.2% 65.9%
1960 - - 20.4% 66.7%

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1989, retrieved 2026-07-08).

GeoRank.org/economy/mozambique/netherlands | CC BY

In 2025, Mozambique's government spending was $6.76B, accounting for 30.3% of its GDP, while the Netherlands spent $602B, or 45.1% of GDP.

Debt-to-GDP ratio is 102.5% in Mozambique and 43.3% in the Netherlands, ranking 21/185 and 121/185, respectively.

Government deficit by year

Deficit/surplus
Mozambique

Netherlands
1x
Year Deficit/surplus, % of GDP
Mozambique Netherlands
2025 -3.97% -1.84%
2024 -6.23% -0.94%
2023 -4.26% -0.37%
2022 -5.22% 0.002%
2021 -5.23% -2.26%
2020 -6.19% -3.72%
2019 1.7% 1.91%
2018 -5.7% 1.49%
2017 -1.99% 1.35%
2016 -5.06% 0.23%
2015 -6.55% -1.84%
2014 -9.75% -2.17%
2013 -2.46% -2.87%
2012 -3.45% -3.83%
2011 -4.34% -4.42%
2010 -3.4% -5.3%
2009 -4.35% -5.06%
2008 -1.9% -0.06%
2007 -2.19% -0.16%
2006 -3.03% 0.04%
2005 -2.06% -0.51%
2004 -3.17% -1.82%
2003 -2.64% -3.19%
2002 -3.36% -2.23%
2001 -4.43% -0.47%
2000 -1.26% 1.14%
1999 -0.31% 0.28%
1998 -1.08% -1.34%
1997 -1.81% -1.6%
1996 -2.07% -1.91%
1995 -2.46% -8.72%
1994 -4% -3.53%
1993 -2.53% -3.13%
1992 -1.85% -3.12%
1991 -2.01% -2.05%
1990 -4.42% -4.08%
1989 -4.23% -5%
1988 -6.47% -4.23%
1987 -7.24% -5.39%
1986 -12.1% -4.62%
1985 -9.69% -3.6%
1984 -13.4% -5.25%
1983 -15.8% -5.47%
1982 -3.61% -6.17%
1981 -7.41% -4.92%
1980 -1.47% -3.95%
1979 - -2.46%
1978 - -2.09%
1977 - -0.75%
1976 - -2.02%
1975 - -2.82%
1974 - -0.26%
1973 - 0.54%
1972 - -0.7%
1971 - -1.58%
1970 - -1.52%
1969 - -1.14%
1968 - -3.06%
1967 - -1.97%
1966 - -2.37%
1965 - -1.15%
1964 - -1.2%
1963 - -0.54%
1962 - -1.38%
1961 - -0.38%
1960 - 0.9%
1959 - -0.74%
1958 - -0.89%
1957 - 0.3%
1956 - -0.83%
1955 - -0.25%
1954 - 0.76%
1953 - -2.95%
1952 - 2.19%
1951 - 2.13%
1950 - 0.81%
1949 - 2.3%
1948 - -
1947 - -
1946 - -
1945 - -
1944 - -
1943 - -
1942 - -
1941 - -
1940 - -
1939 - -3.19%
1938 - -0.37%
1937 - 0.02%
1936 - -0.41%
1935 - -0.69%
1934 - -0.92%
1933 - -2.55%
1932 - -1.97%
1931 - -1.66%
1930 - -0.55%
1929 - -1.16%
1928 - -0.62%
1927 - -0.33%
1926 - -0.78%
1925 - -2.04%
1924 - -3.37%
1923 - -2.62%
1922 - -
1921 - -
1920 - -
1919 - -
1918 - -
1917 - -
1916 - -
1915 - -
1914 - -
1913 - -0.45%
1912 - -0.47%
1911 - -0.13%
1910 - -0.93%
1909 - -0.34%
1908 - -0.57%
1907 - 0.03%
1906 - 0.16%
1905 - 0.1%
1904 - -0.72%
1903 - 0.09%
1902 - -0.14%
1901 - 0.03%
1900 - 0.06%
1899 - -0.13%
1898 - -0.48%
1897 - -0.45%
1896 - 0.08%
1895 - -0.06%
1894 - 0.12%
1893 - -0.76%
1892 - -1.72%
1891 - -0.06%
1890 - -0.06%
1889 - 0.04%
1888 - -0.31%
1887 - -0.37%
1886 - -0.08%
1885 - -0.55%
1884 - 0%
1883 - -2.1%
1882 - -1.11%
1881 - -1.06%
1880 - 0.21%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1880–1989, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/mozambique/netherlands | CC BY

In 2025, Mozambique's government deficit, the difference between spending and revenue, was $886M, equivalent to 3.97% of GDP. This compares to the Netherlands' deficit of $24.5B, or 1.84% of GDP.

Over the past 35 years, Mozambique recorded a fiscal deficit in 34 of those years, while the Netherlands ran a deficit in 27 years. On average, Mozambique posted an annual deficit equal to 3.39% of GDP, compared to deficit of 1.77% of GDP for the Netherlands.

Inflation comparison by year

Inflation
Mozambique

Netherlands
1x
Year Consumer prices inflation
Mozambique Netherlands
2025 4.4% 3.26%
2024 3.2% 3.35%
2023 7% 3.84%
2022 10.4% 10%
2021 6.6% 2.68%
2020 0.9% 1.27%
2019 5.7% 2.63%
2018 3.2% 1.7%
2017 15.8% 1.38%
2016 18.4% 0.32%
2015 3.6% 0.6%
2014 2.6% 0.98%
2013 4.3% 2.51%
2012 2.6% 2.46%
2011 11.2% 2.34%
2010 12.4% 1.28%
2009 3.8% 1.19%
2008 14.5% 2.49%
2007 10.4% 1.61%
2006 13.2% 1.1%
2005 6.4% 1.69%
2004 12.6% 1.26%
2003 13.5% 2.09%
2002 16.8% 3.29%
2001 9.1% 4.16%
2000 12.7% 2.36%
1999 2.9% 2.16%
1998 1.5% 1.96%
1997 7.4% 2.11%

Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2025, retrieved 2026-07-08); World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).

GeoRank.org/economy/mozambique/netherlands | CC BY

Over the past 29 years, Mozambique has recorded an average annual inflation rate of 8.18%, compared with 2.35% in the Netherlands. In 2025, inflation was 4.4% in Mozambique and 3.26% in the Netherlands.

Top exports between countries

Mozambique
Export category Export value
Metals $254M
Raw materials & minerals $29.2M
Processed food, beverages & tobacco $7.87M
Raw agricultural goods $3.15M
Machinery & equipment $2.16M
Animal & marine products $254K
Chemicals & pharma $82K
Textiles & consumer goods $26K
Miscellaneous $1K
Precious metals & jewellery $1K
Netherlands
Export category Export value
Machinery & equipment $91.7M
Animal & marine products $12.7M
Chemicals & pharma $9.83M
Processed food, beverages & tobacco $8.9M
Textiles & consumer goods $5.22M
Metals $2.06M
Miscellaneous $1.87M
Raw materials & minerals $1.39M
Raw agricultural goods $701K
Wood & paper products $202K

Balance of trade

Mozambique Netherlands
Current account balance
-$2.49B
2024
$111B
2024
Current account balance ranking
148/190
2024
6/190
2024
Current account balance, % of GDP
-11%
2024
+9.14%
2024
Goods imports
$8.38B
2024
$606B
2024
Goods exports
$8.21B
2024
$693B
2024
Service imports
$2.11B
2024
$262B
2024
Service exports
$1.15B
2024
$308B
2024
Imports of goods and services, % of GDP
55.7%
2025
69.5%
2025
Exports of goods and services, % of GDP
41.4%
2025
80.7%
2025

Economic freedom indices

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

Mozambique Netherlands
Economic freedom 49.6 78.5
Economic freedom ranking 164/197 11/197
Property rights 29.7 96
Government integrity 25.1 86.8
Judicial effectiveness 43.4 96.1
Tax burden 75.8 54
Government spending 67 42.2
Fiscal health 39.1 95.9
Business freedom 40.2 85
Labor freedom 47.7 59.3
Monetary freedom 76.2 77
Trade freedom 71.2 79.4
Investment freedom 40 90
Financial freedom 40 80

Economic freedom comparison by year

Mozambique
Netherlands
1x
Year Economic freedom index
Mozambique Netherlands
2026 49.6 78.5
2025 50.7 78.2
2024 50.7 77.3
2023 52.5 78
2022 51.3 79.5
2021 51.6 76.8
2020 50.5 77
2019 48.6 76.8
2018 46.3 76.2
2017 49.9 75.8
2016 53.2 74.6
2015 54.8 73.7
2014 55 74.2
2013 55 73.5
2012 57.1 73.3
2011 56.8 74.7
2010 56 75
2009 55.7 77
2008 55.4 77.4
2007 54.7 75.5
2006 51.9 75.4
2005 54.6 72.9
2004 57.2 74.5
2003 58.6 74.6
2002 57.7 75.1
2001 59.2 73
2000 52.2 70.4
1999 48.9 70.2
1998 43 69.2
1997 44 70.4
1996 48.4 69.7
1995 45.5 -

Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08).

GeoRank.org/economy/mozambique/netherlands | CC BY

The Economic Freedom Index for Mozambique is 49.6, ranking 164/197, compared to 78.5 for the Netherlands, ranking 11/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Mozambique Netherlands
Services, % of GDP
42%
2025
70.4%
2025
Industry, % of GDP
22.1%
2025
17.7%
2025
Agriculture, forestry, and fishing, % of GDP
25.6%
2025
1.68%
2025
GNI, Atlas method
$20.4B
2025
$1.24T
2025
GNI per capita, PPP
$1,540
2025
$85,480
2025
Total reserves including gold
$3.84B
2024
$118B
2025
Total reserves ranking
112/177
2024
27/177
2025
Net foreign direct investment
-$3.55B
2024
$11.1B
2024
Net inflows of foreign direct investment
$3.51B
2024
-$17.1B
2024
Net outflows of foreign direct investment
-$44.1M
2024
-$5.93B
2024
Servicing debt to the IMF, % of GNI
22.4%
2024
n/a
Poverty at national poverty lines
65%
2022
14.5%
2021
Gross capital formation, % of GDP
24.2%
2025
19.8%
2025

GDP per capita map

1x

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/mozambique/netherlands | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Public Finances in Modern History (1880–1989, retrieved 2026-07-08)
  4. The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08)
  5. U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
  6. TradeMap (2020–2025, retrieved 2026-07-08)
  7. United Nations | World Population Prospects (2026, retrieved 2026-07-08)
  8. 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.