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Economy of Argentina vs Botswana compared: GDP & Debt

Updated on by Georank

Argentina has a GDP of $683B compared to $19.9B for Botswana, ranking 25/197 and 135/197 by economy size, respectively.

Argentina has $549B in government debt (80.3% of GDP), compared to $7.7B (38.6% of GDP) in Botswana.

Argentina vs Botswana GDP by year

Argentina
Botswana
1x
Year GDP, current $
Argentina Botswana
2025 $683,097,891,619 $19,928,479,839
2024 $638,365,455,340 $19,286,251,068
2023 $649,461,687,959 $19,413,614,555
2022 $633,993,756,301 $20,321,150,599
2021 $486,564,085,480 $18,750,182,236
2020 $385,740,508,437 $14,960,251,608
2019 $447,754,683,615 $16,725,908,149
2018 $524,819,892,360 $17,031,943,186
2017 $643,628,393,281 $16,105,155,857
2016 $557,532,320,663 $15,082,637,184
2015 $594,749,285,413 $13,530,748,845
2014 $526,319,673,732 $15,470,088,501
2013 $552,025,140,252 $14,271,738,933
2012 $545,982,375,701 $13,907,464,500
2011 $530,158,122,010 $15,110,643,612
2010 $423,627,422,092 $12,637,273,429
2009 $332,976,484,578 $10,118,459,242
2008 $361,558,037,110 $10,730,829,116
2007 $287,530,508,431 $10,567,270,656
2006 $232,557,260,817 $9,919,158,482
2005 $198,737,095,012 $9,918,907,108
2004 $164,657,930,453 $8,957,467,707
2003 $127,586,973,492 $7,511,582,173
2002 $97,724,004,252 $5,438,863,983
2001 $268,696,750,000 $5,489,608,300
2000 $284,203,750,000 $5,788,329,609
1999 $283,523,000,000 $5,484,263,347
1998 $298,948,250,000 $4,790,481,509
1997 $292,859,000,000 $5,020,265,627
1996 $272,149,750,000 $4,847,757,218
1995 $258,031,750,000 $4,730,599,122
1994 $257,440,000,000 $4,259,259,604
1993 $236,741,715,015 $4,160,129,175
1992 $228,778,917,308 $4,146,464,587
1991 $189,719,984,268 $3,942,876,703
1990 $141,352,654,305 $3,790,636,324
1989 $76,629,728,760 $3,083,822,112
1988 $126,890,235,049 $2,644,554,159
1987 $108,810,885,301 $1,965,226,890
1986 $105,872,372,614 $1,392,602,164
1985 $88,150,891,728 $1,114,783,343
1984 $116,915,052,107 $1,240,822,167
1983 $103,979,106,778 $1,172,230,397
1982 $84,307,486,837 $1,014,945,696
1981 $78,676,842,367 $1,073,812,830
1980 $76,961,923,741 $1,060,889,704
1979 $69,252,328,952 $819,870,259
1978 $89,049,453,088 $590,407,374
1977 $56,781,000,101 $451,624,780
1976 $51,169,499,892 $372,025,093
1975 $52,438,647,922 $355,168,572
1974 $72,436,777,342 $306,044,208
1973 $52,544,000,117 $244,124,164
1972 $34,733,000,536 $164,460,915
1971 $33,293,199,095 $127,448,614
1970 $31,584,210,366 $96,243,234
1969 $31,256,284,544 $77,361,547
1968 $26,436,857,247 $66,248,441
1967 $24,256,667,553 $58,642,354
1966 $28,630,474,728 $51,465,655
1965 $28,344,705,967 $45,788,696
1964 $25,605,249,382 $41,616,348
1963 $18,272,123,664 $38,091,843
1962 $18,337,691,145 $35,644,957
1961 $20,132,220,375 $32,902,613
1960 $15,865,474,315 $30,411,414

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

GeoRank.org/economy/argentina/botswana | CC BY

GDP per capita in Argentina vs Botswana by year

Argentina
GDP per capita

GDP per capita, PPP
Botswana
GDP per capita

GDP per capita, PPP
1x
Year Current $
Argentina Botswana
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $14,898 - $7,778 -
2024 $13,970 $30,431 $7,650 $20,538
2023 $14,262 $30,221 $7,827 $21,012
2022 $13,962 $29,809 $8,329 $19,977
2021 $10,738 $26,300 $7,808 $17,961
2020 $8,536 $22,393 $6,323 $15,292
2019 $9,956 $23,517 $7,172 $15,960
2018 $11,753 $24,410 $7,408 $15,786
2017 $14,533 $23,385 $7,105 $15,701
2016 $12,700 $20,106 $6,749 $16,228
2015 $13,680 $19,899 $6,141 $14,144
2014 $12,233 $19,487 $7,122 $15,003
2013 $12,964 $19,929 $6,667 $13,621
2012 $12,950 $19,430 $6,596 $12,737
2011 $12,704 $19,105 $7,287 $13,635
2010 $10,260 $17,848 $6,216 $12,753
2009 $8,150 $16,182 $5,083 $11,686
2008 $8,944 $17,277 $5,503 $13,810
2007 $7,185 $16,455 $5,529 $13,389
2006 $5,869 $14,844 $5,292 $12,563
2005 $5,068 $13,465 $5,391 $11,458
2004 $4,242 $12,118 $4,957 $10,818
2003 $3,320 $10,933 $4,230 $10,439
2002 $2,570 $9,953 $3,117 $9,958
2001 $7,141 $11,118 $3,206 $9,420
2000 $7,637 $11,500 $3,451 $9,380
1999 $7,706 $11,464 $3,340 $9,188
1998 $8,219 $11,836 $2,981 $8,441
1997 $8,147 $11,403 $3,194 $8,497
1996 $7,663 $10,496 $3,156 $7,890
1995 $7,358 $9,891 $3,156 $7,503
1994 $7,438 $10,103 $2,917 $7,049
1993 $6,932 $9,472 $2,929 $6,847
1992 $6,790 $8,668 $3,005 $6,753
1991 $5,709 $7,961 $2,939 $6,598
1990 $4,315 $7,158 $2,903 $6,104
1989 $2,375 - $2,428 -
1988 $3,993 - $2,141 -
1987 $3,477 - $1,639 -
1986 $3,436 - $1,200 -
1985 $2,906 - $994 -
1984 $3,915 - $1,145 -
1983 $3,538 - $1,121 -
1982 $2,915 - $1,006 -
1981 $2,764 - $1,107 -
1980 $2,748 - $1,132 -
1979 $2,512 - $909 -
1978 $3,282 - $695 -
1977 $2,126 - $565 -
1976 $1,947 - $490 -
1975 $2,027 - $493 -
1974 $2,845 - $446 -
1973 $2,098 - $374 -
1972 $1,409 - $264.2 -
1971 $1,373 - $212.2 -
1970 $1,323 - $163 -
1969 $1,330 - $131.8 -
1968 $1,142 - $113.4 -
1967 $1,064 - $100.9 -
1966 $1,275 - $89.1 -
1965 $1,282 - $79.7 -
1964 $1,176 - $73.5 -
1963 $853 - $68.9 -
1962 $870 - $66 -
1961 $971 - $62.3 -
1960 $778 - $58.9 -

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

GeoRank.org/economy/argentina/botswana | CC BY

Argentina's GDP per capita is $14,898, ranking 70/197, compared to $7,778 in Botswana, ranking 100/197. Adjusted for purchasing power (GDP per capita PPP), Argentina ranks 73rd at $30,431, while Botswana ranks 95th at $20,538.

Economic indicators

Argentina Botswana
Gross domestic product
$683B
2025
$19.9B
2025
GDP rank
25/197
2025
135/197
2025
GDP growth
4.37%
2024-2025
-0.73%
2024-2025
GDP per capita
$14,898
2025
$7,778
2025
GDP per capita rank
70/197
2025
100/197
2025
GDP per capita, PPP
$30,431
2024
$20,538
2024
GDP per capita PPP rank
73/197
2024
95/197
2024
Government debt
$549B
2025
$7.7B
2025
Debt-to-GDP ratio
80.3%
2025
38.6%
2025
Government debt per person
$11,965
2025
$3,005
2025
Government debt per person rank
52/185
2025
106/185
2025
Average annual personal income after taxes
$8,751
2026
$5,441
2026
Market capitalization of domestic companies
$52.9B
2022
$4.28B
2025
Number of billionaires
5
2026
n/a
Income share by richest 10%
31.2%
2024
42.9%
2015
Income share by poorest 10%
1.9%
2024
1.4%
2015
Government expenditure, % of GDP
31.6%
2025
35%
2025
Consumer prices inflation
41.9%
2024-2025
2.66%
2024-2025
Central bank interest rate
29%
2025
5.5%
2026
Unemployment rate
7.38%
2025
24.4%
2024
Population
46083022
2624853

Spending and national debt comparison by year

Argentina
Spending

Debt
Botswana
Spending

Debt
1x
Year % of GDP
Argentina Botswana
Government spending Government debt Government spending Government debt
2025 31.6% 80.3% 35% 38.6%
2024 31% 84.7% 33.7% 33.2%
2023 37.6% 154.6% 32.4% 22.5%
2022 37.6% 84.3% 29.1% 21%
2021 37.9% 81% 31.4% 22.3%
2020 42.5% 103.8% 36.5% 23.5%
2019 38.1% 89.8% 36.9% 21.5%
2018 38.9% 85.2% 35.6% 19.6%
2017 41.1% 57% 34.7% 19.6%
2016 41.5% 53.1% 34.1% 22.3%
2015 41.4% 52.6% 37.8% 24.5%
2014 38.9% 44.7% 36.5% 23.9%
2013 37.6% 43.5% 33.5% 23.8%
2012 36.8% 40.4% 37.1% 26.4%
2011 34.9% 38.9% 37.2% 27.9%
2010 33.4% 43.5% 42.6% 26.5%
2009 34.5% 55.4% 52.1% 22.4%
2008 30.8% 53.8% 48.1% 7.79%
2007 29.6% 62.1% 37.1% 5.93%
2006 26.6% 70.8% 33.1% 6.14%
2005 24.4% 80.3% 33.8% 7.46%
2004 23% 117.9% 39.8% 10.7%
2003 22% 125.2% 42.7% 7.08%
2002 21.9% 147.2% 45.1% 8.37%
2001 26.4% 48% 42.1% 7.48%
2000 25.2% 40.8% 38.8% 8.16%
1999 25.5% 38.9% 40.1% 9.31%
1998 23.1% 34.1% 41.8% 11.3%
1997 22.6% 31.7% 39% -
1996 22.7% 32.6% 36.1% -
1995 22.9% 30.7% 36.1% -
1994 22.9% 28.4% 37.6% -
1993 22% 26.9% 42% -
1992 12.1% 25% 42.3% -
1991 11.4% 35.7% 41.1% -
1990 11% 48.5% 38.9% -
1989 11% 118.2% - -
1988 12.3% 61.4% - -
1987 13.7% 74.1% - -
1986 13.7% 55.9% - -
1985 14.7% 55.2% - -
1984 13% 54.6% - -
1983 14.2% 64.2% - -
1982 15.9% 52.2% - -
1981 17% 26.5% - -
1980 15.2% 11.4% - -
1979 14.5% 12.4% - -
1978 14.9% 17.5% - -
1977 12.6% 25.1% - -
1976 13% 28.7% - -
1975 12.5% 33.8% - -
1974 14% 13% - -
1973 12.6% 12% - -
1972 11.2% 17.1% - -
1971 11.7% 15.2% - -
1970 12% 13.5% - -
1969 12.3% 9.63% - -
1968 12.8% 9.43% - -
1967 13% 10.9% - -
1966 12.1% 13.4% - -
1965 11.6% 15.9% - -
1964 11.8% 16.8% - -
1963 11.2% 23.4% - -
1962 11.3% 25.1% - -
1961 12.3% 8.69% - -
1960 11.3% 8.39% - -

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1992, retrieved 2026-07-08).

GeoRank.org/economy/argentina/botswana | CC BY

In 2025, Argentina's government spending was $216B, accounting for 31.6% of its GDP, while Botswana spent $6.98B, or 35% of GDP.

Debt-to-GDP ratio is 80.3% in Argentina and 38.6% in Botswana, ranking 43/185 and 137/185, respectively.

Government deficit by year

Deficit/surplus
Argentina

Botswana
1x
Year Deficit/surplus, % of GDP
Argentina Botswana
2025 -0.38% -7.42%
2024 0.46% -7.26%
2023 -5.33% -4.16%
2022 -3.84% 0.04%
2021 -4.33% -2.33%
2020 -8.67% -10.9%
2019 -4.44% -8.53%
2018 -5.44% -5.03%
2017 -6.69% -1.14%
2016 -6.65% 0.71%
2015 -6% -4.82%
2014 -4.25% 3.9%
2013 -3.25% 5.84%
2012 -3.02% 0.89%
2011 -2.75% -0.12%
2010 -1.39% -7.95%
2009 -1.83% -13.8%
2008 0.35% -7.61%
2007 0.76% 5.73%
2006 1.65% 13.3%
2005 3.34% 10.3%
2004 3.97% 1.35%
2003 1.5% -0.18%
2002 -1.91% -3.94%
2001 -5.36% -2.91%
2000 -3.42% 8.73%
1999 -3.71% 5.95%
1998 -1.83% -
1997 -1.84% -
1996 -2.81% -
1995 -2.07% -
1994 -1.25% -
1993 -0.02% -
1992 1.54% -
1991 0.96% -
1990 -0.14% -
1989 -0.25% -
1988 -1.75% -
1987 1.89% -
1986 3.3% -
1985 3.6% -
1984 -1.39% -
1983 -2.89% -
1982 -4.68% -
1981 -3.93% -
1980 -1.14% -
1979 -1.5% -
1978 -1.36% -
1977 -0.54% -
1976 -2.39% -
1975 -2.9% -
1974 -1.08% -
1973 -1.48% -
1972 -0.12% -
1971 0.32% -
1970 1.01% -
1969 0.54% -
1968 0.25% -
1967 0.66% -
1966 -0.98% -
1965 -0.89% -
1964 -1.34% -
1963 -0.65% -
1962 -0.47% -
1961 1.73% -
1960 -1.98% -
1959 -4.82% -
1958 -6.61% -
1957 -2.72% -
1956 -3.77% -
1955 -3.75% -
1954 -3.21% -
1953 -3.1% -
1952 -3.01% -
1951 -3.52% -
1950 -3.38% -
1949 -3.98% -
1948 -2.73% -
1947 -1.6% -
1946 -4.12% -
1945 -5.25% -
1944 -4.61% -
1943 -3.86% -
1942 -2.9% -
1941 -2.85% -
1940 -2.31% -
1939 -3.09% -
1938 -2.09% -
1937 -1.62% -
1936 -1.44% -
1935 -1.16% -
1934 -1.56% -
1933 -1.27% -
1932 -1.19% -
1931 -2.98% -
1930 -3.94% -
1929 -1.95% -
1928 -1.52% -
1927 -3.3% -
1926 -1% -
1925 -0.46% -
1924 -0.68% -
1923 -0.93% -
1922 -1.86% -
1921 -0.99% -
1920 0.2% -
1919 -0.3% -
1918 -1.14% -
1917 -2.18% -
1916 -2.13% -
1915 -2.64% -
1914 -3.03% -
1913 -0.61% -
1912 -0.78% -
1911 -2.19% -
1910 -2.24% -
1909 -2.57% -
1908 0.28% -
1907 -0.2% -
1906 -0.32% -
1905 -3.52% -
1904 0.15% -
1903 -0.25% -
1902 -2.2% -
1901 -0.54% -
1900 -0.42% -
1899 -0.4% -
1898 -9.31% -
1897 -1.46% -
1896 -4.19% -
1895 -1.59% -
1894 -1.06% -
1893 0.06% -
1892 -1.33% -
1891 -4.48% -
1890 -1.82% -
1889 -2.88% -
1888 -0.69% -
1887 0.35% -
1886 -2.39% -
1885 -2.67% -
1884 -4.07% -
1883 -4.19% -
1882 -5.42% -
1881 -2.31% -
1880 -2.15% -
1879 -1.09% -
1878 -1.08% -
1877 -1.68% -
1876 -4.15% -
1875 -3.08% -
1874 -2.59% -
1873 -1.39% -
1872 -1.18% -
1871 -5.54% -
1870 -2.74% -
1869 -1.61% -
1868 -1.8% -
1867 -1.08% -
1866 -2.09% -
1865 -0.79% -
1864 0.51% -

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1864–1992, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1993–2025, retrieved 2026-07-08).

GeoRank.org/economy/argentina/botswana | CC BY

In 2025, Argentina's government deficit, the difference between spending and revenue, was $2.6B, equivalent to 0.38% of GDP. This compares to Botswana's deficit of $1.48B, or 7.42% of GDP.

Over the past 27 years, Argentina recorded a fiscal deficit in 20 of those years, while Botswana ran a deficit in 16 years. On average, Argentina posted an annual deficit equal to 2.62% of GDP, compared to deficit of 1.16% of GDP for Botswana.

Inflation comparison by year

Inflation
Argentina

Botswana
1x
Year Consumer prices inflation
Argentina Botswana
2025 41.9% 2.66%
2024 219.9% 2.82%
2023 133.5% 5.07%
2022 72.4% 11.7%
2021 48.4% 7.24%
2020 42% 1.89%
2019 53.5% 2.77%
2018 34.3% 3.24%
2017 25.7% 3.31%
2016 - 2.81%
2015 - 3.06%
2014 - 4.4%
2013 10.6% 5.88%
2012 10% 7.54%
2011 9.8% 8.46%
2010 10.5% 6.95%
2009 6.3% 8.03%
2008 8.6% 12.7%
2007 8.8% 7.08%
2006 10.9% 11.6%
2005 9.6% 8.61%
2004 4.4% 6.95%
2003 13.4% 9.19%
2002 25.9% 8.03%
2001 -1.1% 6.56%
2000 -0.9% 8.6%
1999 -1.2% 7.75%
1998 0.9% 6.66%
1997 - 8.72%

Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | World Economic Outlook (1998–2025, retrieved 2026-07-08).

GeoRank.org/economy/argentina/botswana | CC BY

Over the past 28 years, Argentina has recorded an average annual inflation rate of 31.9%, compared with 6.48% in Botswana. In 2025, inflation was 41.9% in Argentina and 2.66% in Botswana.

Balance of trade

Argentina Botswana
Current account balance
-$7.58B
2025
-$821M
2024
Current account balance ranking
169/190
2025
113/190
2024
Current account balance, % of GDP
-1.11%
2025
-4.26%
2024
Goods imports
$71.8B
2025
$6.86B
2024
Goods exports
$87.2B
2025
$4.66B
2024
Service imports
$29.3B
2025
$1.29B
2024
Service exports
$18B
2025
$935M
2024
Imports of goods and services, % of GDP
14.8%
2025
37.5%
2025
Exports of goods and services, % of GDP
15.6%
2025
32%
2025

Economic freedom indices

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

Argentina Botswana
Economic freedom 57.4 67.7
Economic freedom ranking 117/197 53/197
Property rights 41.2 71.7
Government integrity 41.2 59.6
Judicial effectiveness 58.2 70.2
Tax burden 67.8 87.1
Government spending 62.3 69.8
Fiscal health 72.2 72.4
Business freedom 56.8 61.5
Labor freedom 53.5 60.7
Monetary freedom 28.9 72
Trade freedom 67.4 77
Investment freedom 70 50
Financial freedom 70 60

Economic freedom comparison by year

Argentina
Botswana
1x
Year Economic freedom index
Argentina Botswana
2026 57.4 67.7
2025 54.2 69.9
2024 49.9 68
2023 51 64.9
2022 50.1 64.8
2021 52.7 67.6
2020 53.1 69.6
2019 52.2 69.5
2018 52.3 69.9
2017 50.4 70.1
2016 43.8 71.1
2015 44.1 69.8
2014 44.6 72
2013 46.7 70.6
2012 48 69.6
2011 51.7 68.8
2010 51.2 70.3
2009 52.3 69.7
2008 54.2 68.2
2007 54 68.1
2006 53.4 68.8
2005 51.7 69.3
2004 53.9 69.9
2003 56.3 68.6
2002 65.7 66.2
2001 68.6 66.8
2000 70 65.8
1999 70.6 62.9
1998 70.9 62.8
1997 73.3 59.1
1996 74.7 61.6
1995 68 56.8

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

GeoRank.org/economy/argentina/botswana | CC BY

The Economic Freedom Index for Argentina is 57.4, ranking 117/197, compared to 67.7 for Botswana, ranking 53/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Argentina Botswana
Services, % of GDP
56.2%
2025
64.6%
2025
Industry, % of GDP
22.9%
2025
27.9%
2025
Agriculture, forestry, and fishing, % of GDP
5.53%
2025
1.78%
2025
GNI, Atlas method
$672B
2025
$18.9B
2025
GNI per capita, PPP
$31,920
2025
$19,960
2025
Total reserves including gold
$41B
2025
$3.46B
2024
Total reserves ranking
54/177
2025
117/177
2024
Net foreign direct investment
-$300M
2025
-$464M
2024
Net inflows of foreign direct investment
$11.6B
2024
$467M
2024
Net outflows of foreign direct investment
$2.76B
2024
$3.02M
2024
Servicing debt to the IMF, % of GNI
6.32%
2024
1.45%
2024
Poverty at national poverty lines
38.1%
2024
16.1%
2015
Gross capital formation, % of GDP
16.1%
2025
29.2%
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).

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Public Finances in Modern History (1864–1992, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, 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. United Nations | World Population Prospects (2026, retrieved 2026-07-08)
  7. 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.