The Solomon Islands has a GDP of $1.58B compared to $25.3B for Zambia, ranking 182/197 and 116/197 by economy size, respectively.
The Solomon Islands has $350M in government debt (22.1% of GDP), compared to $29.1B (114.9% of GDP) in Zambia.
Solomon Islands vs Zambia GDP by year
| Year | GDP, current $ | |
|---|---|---|
Solomon Islands
|
Zambia
|
|
| 2024 | $1,583,964,704 | $25,303,185,342 |
| 2023 | $1,506,124,566 | $27,577,956,471 |
| 2022 | $1,466,670,930 | $29,163,782,140 |
| 2021 | $1,558,312,104 | $22,096,416,932 |
| 2020 | $1,536,143,428 | $18,137,764,931 |
| 2019 | $1,619,150,564 | $23,308,667,781 |
| 2018 | $1,615,473,250 | $26,311,507,274 |
| 2017 | $1,469,790,526 | $25,873,601,261 |
| 2016 | $1,379,486,291 | $20,958,412,538 |
| 2015 | $1,307,908,814 | $21,251,216,799 |
| 2014 | $1,335,576,763 | $27,141,023,558 |
| 2013 | $1,285,905,958 | $28,037,239,463 |
| 2012 | $1,185,217,634 | $25,503,060,420 |
| 2011 | $1,063,898,227 | $23,459,515,276 |
| 2010 | $898,128,551 | $20,265,559,484 |
| 2009 | $805,557,289 | $15,328,342,304 |
| 2008 | $776,335,523 | $17,910,858,638 |
| 2007 | $695,291,218 | $14,056,957,976 |
| 2006 | $617,257,458 | $12,756,858,899 |
| 2005 | $552,881,357 | $8,331,870,169 |
| 2004 | $468,000,121 | $6,221,110,219 |
| 2003 | $417,666,639 | $4,901,869,764 |
| 2002 | $346,406,739 | $4,193,850,445 |
| 2001 | $409,508,553 | $4,094,441,301 |
| 2000 | $419,842,674 | $3,600,632,111 |
| 1999 | $488,024,514 | $3,404,284,891 |
| 1998 | $457,579,840 | $3,537,741,942 |
| 1997 | $526,554,006 | $4,303,288,480 |
| 1996 | $510,586,430 | $3,597,220,962 |
| 1995 | $469,443,202 | $3,806,983,413 |
| 1994 | $402,837,005 | $3,656,806,166 |
| 1993 | $300,746,361 | $3,273,505,344 |
| 1992 | $269,034,596 | $3,182,810,841 |
| 1991 | $227,540,473 | $3,376,806,697 |
| 1990 | $214,877,667 | $3,288,381,797 |
| 1989 | $172,882,411 | $3,994,673,161 |
| 1988 | $176,494,394 | $3,728,878,149 |
| 1987 | $155,128,542 | $2,265,250,972 |
| 1986 | $147,620,048 | $1,664,413,508 |
| 1985 | $165,524,943 | $2,252,454,500 |
| 1984 | $181,570,474 | $2,719,518,933 |
| 1983 | $181,220,399 | $3,321,048,451 |
| 1982 | $192,902,019 | $3,871,117,093 |
| 1981 | $193,750,541 | $4,008,126,497 |
| 1980 | $182,852,107 | $3,884,530,854 |
| 1979 | $151,276,496 | $3,353,445,378 |
| 1978 | $111,027,427 | $2,811,032,473 |
| 1977 | $93,145,283 | $2,515,296,940 |
| 1976 | $83,100,834 | $2,742,859,263 |
| 1975 | $74,620,320 | $2,442,672,141 |
| 1974 | $84,539,332 | $2,910,981,262 |
| 1973 | $55,272,109 | $2,434,255,237 |
| 1972 | $40,606,712 | $1,872,416,680 |
| 1971 | $50,056,883 | $1,653,259,341 |
| 1970 | - | $1,788,779,285 |
| 1969 | $28,606,411 | $1,926,399,230 |
| 1968 | $28,084,253 | $1,573,739,371 |
| 1967 | $25,203,524 | $1,340,639,464 |
| 1966 | - | $1,238,999,505 |
| 1965 | - | $1,061,199,576 |
| 1964 | - | $822,639,671 |
| 1963 | - | $704,339,719 |
| 1962 | - | $679,279,729 |
| 1961 | - | $682,359,727 |
| 1960 | - | $698,739,721 |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/solomon-islands/zambia | CC BY 
GDP per capita in Solomon Islands vs Zambia by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Solomon Islands
|
Zambia
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2024 | $1,934 | $2,675 | $1,187 | $4,215 |
| 2023 | $1,883 | $2,597 | $1,331 | $4,077 |
| 2022 | $1,878 | $2,496 | $1,447 | $3,841 |
| 2021 | $2,043 | $2,450 | $1,127 | $3,503 |
| 2020 | $2,063 | $2,405 | $952 | $3,157 |
| 2019 | $2,224 | $2,512 | $1,259 | $3,361 |
| 2018 | $2,278 | $2,494 | $1,464 | $3,442 |
| 2017 | $2,144 | $2,454 | $1,483 | $3,392 |
| 2016 | $2,083 | $2,421 | $1,239 | $3,313 |
| 2015 | $2,045 | $2,354 | $1,296 | $3,337 |
| 2014 | $2,165 | $2,377 | $1,707 | $3,441 |
| 2013 | $2,161 | $2,394 | $1,821 | $3,477 |
| 2012 | $2,066 | $2,320 | $1,710 | $3,324 |
| 2011 | $1,924 | $2,306 | $1,625 | $3,228 |
| 2010 | $1,685 | $2,182 | $1,451 | $3,098 |
| 2009 | $1,555 | $2,021 | $1,136 | $2,872 |
| 2008 | $1,526 | $1,989 | $1,376 | $2,708 |
| 2007 | $1,390 | $1,869 | $1,119 | $2,555 |
| 2006 | $1,256 | $1,786 | $1,052 | $2,378 |
| 2005 | $1,144 | $1,693 | $711 | $2,213 |
| 2004 | $986 | $1,556 | $549 | $2,068 |
| 2003 | $896 | $1,433 | $446 | $1,942 |
| 2002 | $757 | $1,344 | $394 | $1,837 |
| 2001 | $912 | $1,387 | $397 | $1,785 |
| 2000 | $953 | $1,503 | $359 | $1,709 |
| 1999 | $1,134 | $1,754 | $350 | $1,654 |
| 1998 | $1,092 | $1,785 | $373 | $1,601 |
| 1997 | $1,292 | $1,793 | $466 | $1,631 |
| 1996 | $1,289 | $1,830 | $400 | $1,585 |
| 1995 | $1,220 | $1,820 | $433 | $1,501 |
| 1994 | $1,078 | $1,668 | $426 | $1,464 |
| 1993 | $829 | $1,556 | $391 | $1,607 |
| 1992 | $764 | $1,505 | $389 | $1,505 |
| 1991 | $666 | $1,346 | $423 | $1,534 |
| 1990 | $648 | $1,266 | $422 | $1,522 |
| 1989 | $538 | - | $526 | - |
| 1988 | $567 | - | $504 | - |
| 1987 | $515 | - | $315 | - |
| 1986 | $506 | - | $238.2 | - |
| 1985 | $586 | - | $332 | - |
| 1984 | $665 | - | $413 | - |
| 1983 | $686 | - | $520 | - |
| 1982 | $756 | - | $627 | - |
| 1981 | $786 | - | $670 | - |
| 1980 | $768 | - | $669 | - |
| 1979 | $658 | - | $595 | - |
| 1978 | $500 | - | $514 | - |
| 1977 | $434 | - | $474 | - |
| 1976 | $401 | - | $533 | - |
| 1975 | $372 | - | $490 | - |
| 1974 | $433 | - | $601 | - |
| 1973 | $291.3 | - | $518 | - |
| 1972 | $219.5 | - | $410 | - |
| 1971 | $277.1 | - | $372 | - |
| 1970 | - | - | $414 | - |
| 1969 | $165.9 | - | $459 | - |
| 1968 | $166.9 | - | $387 | - |
| 1967 | $153.5 | - | $341 | - |
| 1966 | - | - | $325 | - |
| 1965 | - | - | $287.4 | - |
| 1964 | - | - | $230 | - |
| 1963 | - | - | $203.2 | - |
| 1962 | - | - | $202.3 | - |
| 1961 | - | - | $209.7 | - |
| 1960 | - | - | $221.6 | - |
Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).
GeoRank.org/economy/solomon-islands/zambia | CC BY
The Solomon Islands' GDP per capita is $1,934, ranking 157/197, compared to $1,187 in Zambia, ranking 169/197. Adjusted for purchasing power (GDP per capita PPP), the Solomon Islands ranks 183rd at $2,675, while Zambia ranks 166th at $4,215.
Economic indicators
|
Solomon Islands
|
Zambia
|
|
|---|---|---|
| Gross domestic product |
$1.58B
2024 |
$25.3B
2024 |
| GDP rank |
182/197
2024 |
116/197
2024 |
| GDP growth |
3%
2023-2024 |
3.82%
2023-2024 |
| GDP per capita |
$1,934
2024 |
$1,187
2024 |
| GDP per capita rank |
157/197
2024 |
169/197
2024 |
| GDP per capita, PPP |
$2,675
2024 |
$4,215
2024 |
| GDP per capita PPP rank |
183/197
2024 |
166/197
2024 |
| Government debt |
$350M
2024 |
$29.1B
2024 |
| Debt-to-GDP ratio |
22.1%
2024 |
114.9%
2024 |
| Government debt per person |
$427
2024 |
$1,365
2024 |
| Government debt per person rank |
169/185
2024 |
134/185
2024 |
| Average annual personal income after taxes |
$1,776
2026 |
$1,349
2026 |
| Market capitalization of domestic companies | n/a |
$7.77B
2024 |
| Income share by richest 10% |
29.2%
2012 |
39.1%
2022 |
| Income share by poorest 10% |
2.8%
2012 |
1.5%
2022 |
| Government expenditure, % of GDP |
35.8%
2024 |
25.5%
2024 |
| Consumer prices inflation |
4.32%
2023-2024 |
15%
2023-2024 |
| Central bank interest rate | n/a |
14.3%
2025 |
| Unemployment rate |
0.69%
2013 |
5.86%
2023 |
| Population |
863951
|
22697916
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Solomon Islands
|
Zambia
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2024 | 35.8% | 22.1% | 25.5% | 114.9% |
| 2023 | 40.1% | 20.3% | 27.4% | 129.1% |
| 2022 | 40.8% | 15.5% | 28.2% | 99.5% |
| 2021 | 37.8% | 15.9% | 30.5% | 111% |
| 2020 | 40.4% | 12.8% | 34% | 140% |
| 2019 | 35.6% | 7.82% | 29.8% | 103.3% |
| 2018 | 34.8% | 7.95% | 27.7% | 81.2% |
| 2017 | 40.4% | 8.77% | 25% | 66.6% |
| 2016 | 39.6% | 7.54% | 23.9% | 61.2% |
| 2015 | 41.5% | 7.88% | 27.6% | 61.9% |
| 2014 | 39.8% | 10.1% | 24.3% | 33.9% |
| 2013 | 41.8% | 11.6% | 24% | 25.9% |
| 2012 | 29.4% | 13.3% | 21.9% | 24.9% |
| 2011 | 27% | 18.3% | 19.5% | 20.8% |
| 2010 | 23.9% | 22.9% | 18.1% | 18.9% |
| 2009 | 24.8% | 18.9% | 17.8% | 20.5% |
| 2008 | 27% | 28.9% | 19.5% | 19.2% |
| 2007 | 23.7% | 33% | 19.9% | 21.9% |
| 2006 | 19.9% | 42.3% | 19.7% | 25% |
| 2005 | 17% | 44.7% | 22.5% | 75.7% |
| 2004 | 14.7% | 58.2% | 23.3% | 129.9% |
| 2003 | 14.9% | 61.3% | 27.3% | 159.5% |
| 2002 | 16.7% | 65.7% | 27.6% | 180.2% |
| 2001 | 18.1% | 52.8% | 28% | 210.2% |
| 2000 | 18.7% | 44.3% | 21.4% | 261% |
| 1999 | 18.7% | 42% | - | - |
| 1998 | 15.5% | 39.5% | - | - |
| 1997 | 19.3% | 25.9% | - | - |
| 1996 | 24.2% | - | - | - |
| 1995 | 24.7% | - | - | - |
| 1994 | 30.2% | - | - | - |
| 1993 | 33.2% | - | - | - |
| 1992 | 35.1% | - | - | - |
| 1991 | 39.4% | - | - | - |
| 1990 | 30% | - | - | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20).
GeoRank.org/economy/solomon-islands/zambia | CC BY
In 2024, the Solomon Islands' government spending was $567M, accounting for 35.8% of its GDP, while Zambia spent $6.45B, or 25.5% of GDP.
Debt-to-GDP ratio is 22.1% in the Solomon Islands and 114.9% in Zambia, ranking 173/185 and 13/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Solomon Islands
|
Zambia
|
|
| 2024 | -3.08% | -3.32% |
| 2023 | -3.81% | -5.48% |
| 2022 | -2.51% | -7.82% |
| 2021 | -1.86% | -8.13% |
| 2020 | -2.44% | -13.8% |
| 2019 | -1.52% | -9.41% |
| 2018 | 1.49% | -8.31% |
| 2017 | -2.27% | -7.5% |
| 2016 | -3.56% | -5.69% |
| 2015 | 0.81% | -8.88% |
| 2014 | 2.13% | -5.43% |
| 2013 | 3.57% | -6.4% |
| 2012 | 4.63% | -3.16% |
| 2011 | 6.22% | -1.78% |
| 2010 | 6.02% | -2.43% |
| 2009 | 2.35% | -2.06% |
| 2008 | 1.94% | -0.67% |
| 2007 | 15.3% | -1.04% |
| 2006 | 13% | 16.9% |
| 2005 | 13.4% | -2.37% |
| 2004 | 17% | -2.51% |
| 2003 | 10.6% | -5.31% |
| 2002 | -4.35% | -4.5% |
| 2001 | -2.4% | -5.89% |
| 2000 | -2.93% | 1.16% |
| 1999 | -0.32% | - |
| 1998 | 5.04% | - |
| 1997 | 2.14% | - |
| 1996 | 3.73% | - |
| 1995 | 3.19% | - |
| 1994 | 4.33% | - |
| 1993 | 2.45% | - |
| 1992 | 4.13% | - |
| 1991 | 0.14% | - |
| 1990 | 0.58% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20).
GeoRank.org/economy/solomon-islands/zambia | CC BY
In 2024, the Solomon Islands' government deficit, the difference between spending and revenue, was $48.8M, equivalent to 3.08% of GDP. This compares to Zambia's deficit of $840M, or 3.32% of GDP.
Over the past 25 years, the Solomon Islands recorded a fiscal deficit in 11 of those years, while Zambia ran a deficit in 23 years. On average, the Solomon Islands posted an annual surplus equal to 2.71% of GDP, compared to deficit of 4.15% of GDP for Zambia.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Solomon Islands
|
Zambia
|
|
| 2024 | 4.32% | 15% |
| 2023 | 5.89% | 10.9% |
| 2022 | 5.52% | 11% |
| 2021 | -0.12% | 22% |
| 2020 | 2.96% | 15.7% |
| 2019 | 1.63% | 9.2% |
| 2018 | 3.46% | 7.5% |
| 2017 | 0.49% | 6.6% |
| 2016 | 0.51% | 17.9% |
| 2015 | -0.57% | 10.1% |
| 2014 | 5.17% | 7.8% |
| 2013 | 5.39% | 7% |
| 2012 | 5.91% | 6.6% |
| 2011 | 7.34% | 8.7% |
| 2010 | 1.05% | 8.5% |
| 2009 | 7.09% | 13.4% |
| 2008 | 17.3% | 12.4% |
| 2007 | 7.67% | 10.7% |
| 2006 | 11.2% | 9% |
| 2005 | 7.33% | 18.3% |
| 2004 | 6.99% | 18% |
| 2003 | 8.27% | 21.4% |
| 2002 | 10.9% | 22.2% |
| 2001 | 6.93% | 21.4% |
| 2000 | 7.89% | 24.1% |
| 1999 | 8.02% | 23.9% |
| 1998 | 12.4% | 22.7% |
| 1997 | 8.08% | 21.4% |
Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2024, retrieved 2026-02-20); World Bank | Economy & Growth (1997–2024, retrieved 2026-04-06).
GeoRank.org/economy/solomon-islands/zambia | CC BY
Over the past 28 years, the Solomon Islands has recorded an average annual inflation rate of 6.04%, compared with 14.4% in Zambia. In 2024, inflation was 4.32% in the Solomon Islands and 15% in Zambia.
Balance of trade
|
Solomon Islands
|
Zambia
|
|
|---|---|---|
|
Current account balance
|
-$66.2M
2024 |
-$487M
2024 |
| Current account balance ranking |
87/190
2024 |
106/190
2024 |
| Current account balance, % of GDP |
-4.18%
2024 |
-1.93%
2024 |
| Goods imports |
$609M
2024 |
$10.1B
2024 |
| Goods exports |
$510M
2024 |
$11.4B
2024 |
| Service imports |
$248M
2024 |
$1.94B
2024 |
| Service exports |
$133M
2024 |
$1.38B
2024 |
| Imports of goods and services, % of GDP |
70.8%
2024 |
27.6%
2024 |
| Exports of goods and services, % of GDP |
40.6%
2024 |
35%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Solomon Islands
|
Zambia
|
|
|---|---|---|
| Economic freedom | 53.7 | 51.9 |
| Economic freedom ranking | 137/197 | 152/197 |
| Property rights | 55.8 | 43.9 |
| Government integrity | 42.7 | 39.3 |
| Judicial effectiveness | 59.1 | 45 |
| Tax burden | 71.3 | 74.3 |
| Government spending | 54.6 | 78.1 |
| Fiscal health | 83.3 | 30.9 |
| Business freedom | 52.3 | 53.4 |
| Labor freedom | 60.4 | 48.8 |
| Monetary freedom | 76.5 | 66.6 |
| Trade freedom | 43.6 | 62.8 |
| Investment freedom | 15 | 40 |
| Financial freedom | 30 | 40 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Solomon Islands
|
Zambia
|
|
| 2026 | 53.7 | 51.9 |
| 2025 | 56.3 | 50.9 |
| 2024 | 55 | 48.4 |
| 2023 | 56.9 | 47.8 |
| 2022 | 56.5 | 48.7 |
| 2021 | 56.5 | 50.4 |
| 2020 | 52.9 | 53.5 |
| 2019 | 54.6 | 53.6 |
| 2018 | 57.5 | 54.3 |
| 2017 | 55 | 55.8 |
| 2016 | 47 | 58.8 |
| 2015 | 47 | 58.7 |
| 2014 | 46.2 | 60.4 |
| 2013 | 45 | 58.7 |
| 2012 | 46.2 | 58.3 |
| 2011 | 45.9 | 59.7 |
| 2010 | 42.9 | 58 |
| 2009 | 46 | 56.6 |
| 2008 | - | 56.2 |
| 2007 | - | 56.2 |
| 2006 | - | 56.8 |
| 2005 | - | 55 |
| 2004 | - | 54.9 |
| 2003 | - | 55.3 |
| 2002 | - | 59.6 |
| 2001 | - | 59.5 |
| 2000 | - | 62.8 |
| 1999 | - | 64.2 |
| 1998 | - | 62.7 |
| 1997 | - | 62.1 |
| 1996 | - | 59.6 |
| 1995 | - | 55.1 |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09).
GeoRank.org/economy/solomon-islands/zambia | CC BY
The Economic Freedom Index for the Solomon Islands is 53.7, ranking 137/197, compared to 51.9 for Zambia, ranking 152/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Solomon Islands
|
Zambia
|
|
|---|---|---|
| Services, % of GDP |
46.9%
2024 |
57.2%
2024 |
| Industry, % of GDP |
23.4%
2024 |
35.2%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
29.7%
2024 |
2.83%
2024 |
|
GNI, Atlas method
|
$1.57B
2024 |
$25.9B
2024 |
| GNI per capita, PPP |
$2,680
2024 |
$3,850
2024 |
| Total reserves including gold |
$688M
2023 |
$4.09B
2024 |
| Total reserves ranking |
149/177
2023 |
106/177
2024 |
|
Net foreign direct investment
|
$19.9M
2024 |
-$1.32B
2024 |
|
Net inflows of foreign direct investment
|
$33M
2024 |
$2.36B
2024 |
|
Net outflows of foreign direct investment
|
$52.9M
2024 |
$311M
2024 |
|
Servicing debt to the IMF, % of GNI
|
1.64%
2024 |
16.9%
2024 |
| Poverty at national poverty lines |
12.7%
2012 |
60%
2022 |
|
Gross capital formation, % of GDP
|
19.5%
2024 |
23.8%
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/solomon-islands/zambia | 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)
- 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.