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Economy of Angola vs Netherlands compared: GDP & Debt

Updated on by Georank

Angola has a GDP of $122B compared to $1.33T for the Netherlands, ranking 68/197 and 18/197 by economy size, respectively.

Angola has $62.7B in government debt (51.3% of GDP), compared to $578B (43.3% of GDP) in the Netherlands.

Angola vs Netherlands GDP by year

Angola
Netherlands
1x
Year GDP, current $
Angola Netherlands
2025 $122,174,889,424 $1,332,767,651,100
2024 $103,080,538,044 $1,213,936,238,063
2023 $106,042,349,567 $1,135,475,867,551
2022 $128,233,959,333 $1,046,540,797,549
2021 $78,283,923,544 $1,054,472,123,450
2020 $58,512,033,806 $932,560,861,701
2019 $81,193,813,808 $928,903,005,576
2018 $90,506,061,877 $929,733,599,797
2017 $85,629,598,654 $848,233,537,846
2016 $60,770,049,747 $797,163,949,290
2015 $102,543,067,841 $775,743,675,303
2014 $153,449,860,496 $901,556,501,756
2013 $148,845,200,696 $883,951,539,007
2012 $143,572,907,528 $845,689,017,066
2011 $125,551,634,705 $913,140,741,333
2010 $95,546,919,754 $852,464,982,433
2009 $81,705,175,409 $878,954,223,140
2008 $98,790,432,989 $957,901,566,041
2007 $73,037,821,926 $853,499,460,873
2006 $58,653,659,980 $737,593,995,289
2005 $41,396,636,384 $688,133,699,636
2004 $26,997,977,896 $661,224,886,143
2003 $20,342,128,112 $582,435,617,082
2002 $17,311,512,433 $475,529,972,123
2001 $8,936,079,118 $432,536,219,669
2000 $9,129,594,970 $417,649,282,154
1999 $6,152,923,310 $447,778,514,140
1998 $6,506,221,616 $438,612,530,549
1997 $7,648,380,196 $417,506,211,882
1996 $7,526,421,519 $451,372,549,020
1995 $5,538,749,260 $452,967,334,614
1994 $4,438,321,017 $379,688,232,232
1993 $5,768,720,422 $354,070,495,966
1992 $8,307,810,974 $363,497,050,125
1991 $10,603,784,541 $327,982,316,124
1990 $11,229,515,599 $318,799,003,994
1989 $10,201,780,977 $258,716,904,292
1988 $8,769,836,769 $262,295,966,105
1987 $8,084,412,414 $245,406,949,521
1986 $7,072,536,109 $201,157,708,221
1985 $7,554,065,410 $144,057,523,222
1984 $6,131,475,065 $144,124,462,912
1983 $5,784,341,596 $153,671,294,109
1982 $5,550,483,036 $158,712,765,536
1981 $5,550,483,036 $164,375,775,854
1980 $5,930,503,401 $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/angola/netherlands | CC BY

GDP per capita in Angola vs Netherlands by year

Angola
GDP per capita

GDP per capita, PPP
Netherlands
GDP per capita

GDP per capita, PPP
1x
Year Current $
Angola Netherlands
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $3,129 - $73,684 -
2024 $2,721 $10,119 $67,465 $86,174
2023 $2,886 $9,754 $63,516 $81,729
2022 $3,599 $9,588 $59,123 $78,630
2021 $2,267 $8,862 $60,142 $68,574
2020 $1,749 $7,827 $53,468 $62,597
2019 $2,508 $8,573 $53,555 $62,345
2018 $2,892 $8,278 $53,955 $58,819
2017 $2,832 $8,007 $49,514 $56,038
2016 $2,082 $7,767 $46,809 $53,162
2015 $3,642 $8,067 $45,794 $50,957
2014 $5,650 $9,018 $53,457 $49,751
2013 $5,689 $8,504 $52,602 $49,622
2012 $5,702 $8,246 $50,474 $47,653
2011 $5,184 $7,538 $54,702 $47,004
2010 $4,102 $7,412 $51,306 $45,301
2009 $3,645 $7,228 $53,172 $44,959
2008 $4,578 $7,316 $58,247 $46,714
2007 $3,515 $6,728 $52,101 $44,203
2006 $2,930 $6,018 $45,124 $41,208
2005 $2,146 $5,416 $42,165 $37,778
2004 $1,451 $4,771 $40,611 $35,961
2003 $1,134 $4,322 $35,897 $34,286
2002 $999 $4,241 $29,447 $34,568
2001 $534 $3,802 $26,956 $33,259
2000 $564 $3,690 $26,225 $31,895
1999 $393 $3,619 $28,319 $29,316
1998 $429 $3,609 $27,924 $27,749
1997 $522 $3,525 $26,745 $26,062
1996 $531 $3,342 $29,064 $24,564
1995 $404 $2,990 $29,301 $23,480
1994 $335 $2,633 $24,683 $22,414
1993 $450 $2,628 $23,156 $21,443
1992 $669 $3,486 $23,939 $20,831
1991 $882 $3,740 $21,764 $20,177
1990 $966 $3,705 $21,322 $19,203
1989 $908 - $17,423 -
1988 $807 - $17,771 -
1987 $770 - $16,734 -
1986 $698 - $13,804 -
1985 $772 - $9,941 -
1984 $650 - $9,992 -
1983 $637 - $10,696 -
1982 $634 - $11,089 -
1981 $658 - $11,537 -
1980 $729 - $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/angola/netherlands | CC BY

Angola's GDP per capita is $3,129, ranking 142/197, compared to $73,684 in the Netherlands, ranking 12/197. Adjusted for purchasing power (GDP per capita PPP), Angola ranks 133rd at $10,119, while the Netherlands ranks 11th at $86,174.

Economic indicators

Angola Netherlands
Gross domestic product
$122B
2025
$1.33T
2025
GDP rank
68/197
2025
18/197
2025
GDP growth
3.13%
2024-2025
1.78%
2024-2025
GDP per capita
$3,129
2025
$73,684
2025
GDP per capita rank
142/197
2025
12/197
2025
GDP per capita, PPP
$10,119
2024
$86,174
2024
GDP per capita PPP rank
133/197
2024
11/197
2024
Government debt
$62.7B
2025
$578B
2025
Debt-to-GDP ratio
51.3%
2025
43.3%
2025
Government debt per person
$1,606
2025
$31,942
2025
Government debt per person rank
127/185
2025
23/185
2025
Average annual personal income after taxes
$2,550
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%
39.6%
2018
21.4%
2021
Income share by poorest 10%
1.3%
2018
3.6%
2021
Government expenditure, % of GDP
18.9%
2025
45.1%
2025
Consumer prices inflation
20.2%
2024-2025
3.26%
2024-2025
Central bank interest rate
17.5%
2026
n/a
Unemployment rate
10.4%
2025
3.9%
2025
Population
40839390
18243998

Spending and national debt comparison by year

Angola
Spending

Debt
Netherlands
Spending

Debt
1x
Year % of GDP
Angola Netherlands
Government spending Government debt Government spending Government debt
2025 18.9% 51.3% 45.1% 43.3%
2024 19% 57.1% 44.4% 43.7%
2023 23.3% 75.7% 44% 45.8%
2022 24.8% 57.4% 43.3% 48.4%
2021 22.8% 75.5% 45.9% 50.5%
2020 24.4% 119.8% 47.8% 53.4%
2019 20.9% 100.8% 42.1% 47.7%
2018 17.8% 81.6% 42.4% 51.6%
2017 20.7% 59.6% 42.8% 56%
2016 19.1% 65.7% 43.9% 60.9%
2015 23.9% 50.4% 45.3% 63.8%
2014 32.3% 35.3% 46.7% 67.2%
2013 32.9% 29.5% 47.5% 67.2%
2012 33.2% 23.8% 47.6% 65.7%
2011 33.3% 26.3% 47.8% 61.2%
2010 34.6% 32.6% 48.9% 58.9%
2009 38.7% 48.4% 48.4% 56.3%
2008 47.2% 28.1% 44.3% 54.4%
2007 34.1% 18.8% 43.3% 42.7%
2006 27.3% 16.7% 44% 45%
2005 23.7% 29.9% 43.4% 49.6%
2004 26% 41.6% 44.7% 50.1%
2003 30.1% 50.8% 45.8% 49.8%
2002 27.6% 65.1% 44.8% 48.7%
2001 30.3% 100.2% 44.1% 49.4%
2000 35.8% 118.2% 43.2% 52.2%
1999 45.7% 104.8% 44.3% 58.6%
1998 30.3% 96.3% 44.6% 62.7%
1997 31.1% 73.5% 45.7% 65.7%
1996 29.3% 92% 47.3% 71.2%
1995 - - 53.9% 73%
1994 - - 49.4% 73.5%
1993 - - 50.9% 76.7%
1992 - - 50.2% 75.6%
1991 - - 49.6% 74.8%
1990 - - 48.8% 75%
1989 - - 54.5% 73.7%
1988 - - 56.4% 73.7%
1987 - - 58.5% 71.3%
1986 - - 57% 68.9%
1985 - - 57.3% 67.1%
1984 - - 58.1% 61.9%
1983 - - 59.1% 58.4%
1982 - - 59.1% 52.4%
1981 - - 56.8% 46.9%
1980 - - 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 (1960–1999, retrieved 2026-07-08).

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

In 2025, Angola's government spending was $23B, accounting for 18.9% of its GDP, while the Netherlands spent $602B, or 45.1% of GDP.

Debt-to-GDP ratio is 51.3% in Angola and 43.3% in the Netherlands, ranking 103/185 and 121/185, respectively.

Government deficit by year

Deficit/surplus
Angola

Netherlands
1x
Year Deficit/surplus, % of GDP
Angola Netherlands
2025 -4.07% -1.84%
2024 -1.19% -0.94%
2023 -2.49% -0.37%
2022 1.78% 0.002%
2021 1.35% -2.26%
2020 -3.05% -3.72%
2019 -0.2% 1.91%
2018 2% 1.49%
2017 -5.68% 1.35%
2016 -3.93% 0.23%
2015 -2.58% -1.84%
2014 -5.08% -2.17%
2013 -0.28% -2.87%
2012 3.67% -3.83%
2011 7.17% -4.42%
2010 2.96% -5.3%
2009 -6.83% -5.06%
2008 -3.82% -0.06%
2007 3.81% -0.16%
2006 8.42% 0.04%
2005 6.4% -0.51%
2004 1.03% -1.82%
2003 -4.1% -3.19%
2002 -2.24% -2.23%
2001 2.8% -0.47%
2000 2.02% 1.14%
1999 -9.4% 0.28%
1998 -5.92% -1.34%
1997 -0.27% -1.6%
1996 5.22% -1.91%
1995 - -8.72%
1994 - -3.53%
1993 - -3.13%
1992 - -3.12%
1991 - -2.05%
1990 - -4.08%
1989 - -5%
1988 - -4.23%
1987 - -5.39%
1986 - -4.62%
1985 - -3.6%
1984 - -5.25%
1983 - -5.47%
1982 - -6.17%
1981 - -4.92%
1980 - -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/angola/netherlands | CC BY

In 2025, Angola's government deficit, the difference between spending and revenue, was $4.97B, equivalent to 4.07% of GDP. This compares to the Netherlands' deficit of $24.5B, or 1.84% of GDP.

Over the past 30 years, Angola recorded a fiscal deficit in 17 of those years, while the Netherlands ran a deficit in 22 years. On average, Angola posted an annual deficit equal to 0.42% of GDP, compared to deficit of 1.38% of GDP for the Netherlands.

Inflation comparison by year

Inflation
Angola

Netherlands
1x
Year Consumer prices inflation
Angola Netherlands
2025 20.2% 3.26%
2024 28.2% 3.35%
2023 13.6% 3.84%
2022 21.4% 10%
2021 25.8% 2.68%
2020 22.3% 1.27%
2019 17.1% 2.63%
2018 19.6% 1.7%
2017 29.8% 1.38%
2016 30.7% 0.32%
2015 9.2% 0.6%
2014 7.3% 0.98%
2013 8.8% 2.51%
2012 10.3% 2.46%
2011 13.5% 2.34%
2010 14.5% 1.28%
2009 13.7% 1.19%
2008 12.5% 2.49%
2007 12.2% 1.61%
2006 13.3% 1.1%
2005 23% 1.69%
2004 43.5% 1.26%
2003 98.2% 2.09%
2002 108.9% 3.29%
2001 152.6% 4.16%
2000 325% 2.36%
1999 248.2% 2.16%
1998 107.4% 1.96%
1997 221.5% 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/angola/netherlands | CC BY

Over the past 29 years, Angola has recorded an average annual inflation rate of 57.7%, compared with 2.35% in the Netherlands. In 2025, inflation was 20.2% in Angola and 3.26% in the Netherlands.

Top exports between countries

Angola
Export category Export value
Raw materials & minerals $823M
Machinery & equipment $50.9M
Metals $639K
Textiles & consumer goods $186K
Chemicals & pharma $153K
Processed food, beverages & tobacco $69K
Raw agricultural goods $5K
Precious metals & jewellery $2K
Wood & paper products $2K
Animal & marine products $1K
Netherlands
Export category Export value
Raw materials & minerals $168M
Machinery & equipment $109M
Chemicals & pharma $21.5M
Processed food, beverages & tobacco $20.9M
Metals $13.9M
Animal & marine products $9.89M
Miscellaneous $8.46M
Textiles & consumer goods $6.56M
Raw agricultural goods $2.62M
Wood & paper products $847K

Balance of trade

Angola Netherlands
Current account balance
$536M
2025
$111B
2024
Current account balance ranking
57/190
2025
6/190
2024
Current account balance, % of GDP
+0.44%
2025
+9.14%
2024
Goods imports
$15.5B
2025
$606B
2024
Goods exports
$30.6B
2025
$693B
2024
Service imports
$8.51B
2025
$262B
2024
Service exports
$118M
2025
$308B
2024
Imports of goods and services, % of GDP
11.7%
2025
69.5%
2025
Exports of goods and services, % of GDP
23%
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.

Angola Netherlands
Economic freedom 54.4 78.5
Economic freedom ranking 133/197 11/197
Property rights 36.9 96
Government integrity 28.3 86.8
Judicial effectiveness 26.3 96.1
Tax burden 86.9 54
Government spending 89.3 42.2
Fiscal health 91.9 95.9
Business freedom 42.8 85
Labor freedom 50.8 59.3
Monetary freedom 59 77
Trade freedom 70.4 79.4
Investment freedom 30 90
Financial freedom 40 80

Economic freedom comparison by year

Angola
Netherlands
1x
Year Economic freedom index
Angola Netherlands
2026 54.4 78.5
2025 55 78.2
2024 54.3 77.3
2023 53 78
2022 52.6 79.5
2021 54.2 76.8
2020 52.2 77
2019 50.6 76.8
2018 48.6 76.2
2017 48.5 75.8
2016 48.9 74.6
2015 47.9 73.7
2014 47.7 74.2
2013 47.3 73.5
2012 46.7 73.3
2011 46.2 74.7
2010 48.4 75
2009 47 77
2008 46.9 77.4
2007 44.7 75.5
2006 43.5 75.4
2005 - 72.9
2004 - 74.5
2003 - 74.6
2002 - 75.1
2001 - 73
2000 24.3 70.4
1999 23.7 70.2
1998 24.9 69.2
1997 24.2 70.4
1996 24.4 69.7
1995 27.4 -

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

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

The Economic Freedom Index for Angola is 54.4, ranking 133/197, 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

Angola Netherlands
Services, % of GDP
46.8%
2025
70.4%
2025
Industry, % of GDP
27.1%
2025
17.7%
2025
Agriculture, forestry, and fishing, % of GDP
25.2%
2025
1.68%
2025
GNI, Atlas method
$112B
2025
$1.24T
2025
GNI per capita, PPP
$9,840
2025
$85,480
2025
Total reserves including gold
$13.5B
2025
$118B
2025
Total reserves ranking
75/177
2025
27/177
2025
Net foreign direct investment
-$1.02B
2025
$11.1B
2024
Net inflows of foreign direct investment
-$1.11B
2024
-$17.1B
2024
Net outflows of foreign direct investment
$33.1M
2024
-$5.93B
2024
Servicing debt to the IMF, % of GNI
11.3%
2024
n/a
Poverty at national poverty lines
36.6%
2020
14.5%
2021
Gross capital formation, % of GDP
10.6%
2024
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/angola/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 (1880–1999, 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 (2024–2025, 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.