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Economy of Austria vs Hungary compared: GDP & Debt

Updated on by Georank

Austria has a GDP of $579B compared to $246B for Hungary, ranking 29/197 and 55/197 by economy size, respectively.

Austria has $466B in government debt (80.5% of GDP), compared to $185B (75.2% of GDP) in Hungary.

Austria vs Hungary GDP by year

Austria
Hungary
1x
Year GDP, current $
Austria Hungary
2025 $579,470,021,095 $246,490,213,513
2024 $534,790,720,467 $222,848,211,034
2023 $516,670,509,629 $213,029,511,029
2022 $473,221,298,968 $177,002,580,544
2021 $480,466,363,177 $183,282,685,440
2020 $434,397,601,558 $158,468,487,754
2019 $442,983,642,372 $164,936,682,034
2018 $452,582,294,973 $161,184,691,014
2017 $414,926,138,133 $143,335,098,992
2016 $393,687,359,770 $128,983,560,865
2015 $379,546,097,301 $125,244,126,623
2014 $438,556,021,078 $141,128,696,412
2013 $426,580,502,769 $135,646,053,779
2012 $406,750,487,604 $128,470,269,690
2011 $428,954,737,064 $141,712,804,954
2010 $389,827,789,218 $131,898,737,241
2009 $399,290,118,782 $130,807,441,076
2008 $429,234,399,096 $158,228,265,916
2007 $386,760,177,589 $140,123,326,896
2006 $333,905,979,332 $115,604,111,412
2005 $313,952,317,331 $113,098,237,571
2004 $299,210,411,455 $104,015,363,080
2003 $260,779,834,340 $85,190,469,121
2002 $212,837,224,023 $67,636,468,625
2001 $196,477,206,829 $53,800,068,066
2000 $196,181,599,831 $47,275,954,429
1999 $216,421,809,126 $49,160,204,397
1998 $217,068,085,816 $48,784,412,624
1997 $211,724,812,267 $47,398,564,799
1996 $235,952,581,232 $46,833,767,124
1995 $240,094,169,510 $46,577,614,589
1994 $202,738,023,130 $43,307,949,890
1993 $189,634,029,339 $40,256,233,360
1992 $194,314,032,056 $38,857,339,125
1991 $173,113,449,617 $34,867,307,353
1990 $165,811,372,383 $34,478,360,679
1989 $132,584,448,258 $30,422,508,938
1988 $132,817,124,707 $29,799,838,597
1987 $123,682,091,859 $27,232,016,527
1986 $98,648,254,169 $24,778,163,812
1985 $69,114,996,010 $21,510,643,750
1984 $67,719,055,773 $21,242,726,264
1983 $71,838,528,420 $21,910,365,258
1982 $70,996,111,963 $24,141,667,188
1981 $70,755,997,062 $23,705,883,892
1980 $81,737,498,405 $23,116,977,148
1979 $73,647,694,287 $19,959,731,325
1978 $61,809,208,756 $17,286,744,154
1977 $51,343,861,460 $14,783,674,055
1976 $42,791,707,448 $13,235,612,079
1975 $39,902,300,703 $11,420,392,515
1974 $35,051,468,640 $10,016,338,179
1973 $29,399,860,145 $9,138,292,402
1972 $21,973,207,929 $7,379,313,742
1971 $17,788,536,733 $6,291,568,221
1970 $15,312,791,744 $5,780,929,203
1969 $13,647,475,854 $5,429,812,387
1968 $12,499,863,917 $4,886,222,555
1967 $11,634,569,522 -
1966 $10,939,526,219 -
1965 $10,041,659,445 -
1964 $9,213,648,656 -
1963 $8,414,050,621 -
1962 $7,793,042,529 -
1961 $7,346,566,038 -
1960 $6,624,086,313 -

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

GeoRank.org/economy/austria/hungary | CC BY

GDP per capita in Austria vs Hungary by year

Austria
GDP per capita

GDP per capita, PPP
Hungary
GDP per capita

GDP per capita, PPP
1x
Year Current $
Austria Hungary
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $62,930 - $25,907 -
2024 $58,269 $73,911 $23,305 $48,552
2023 $56,580 $73,545 $22,209 $46,592
2022 $52,337 $72,065 $18,428 $44,366
2021 $53,649 $62,969 $19,031 $38,887
2020 $48,716 $58,523 $16,387 $35,584
2019 $49,886 $60,355 $17,013 $35,627
2018 $51,194 $56,636 $16,605 $32,258
2017 $47,164 $53,870 $14,736 $29,728
2016 $45,061 $52,398 $13,216 $28,179
2015 $43,915 $49,549 $12,783 $26,938
2014 $51,315 $48,355 $14,353 $25,796
2013 $50,305 $47,520 $13,739 $24,592
2012 $48,250 $46,156 $12,950 $23,205
2011 $51,117 $44,172 $14,211 $22,992
2010 $46,611 $41,735 $13,190 $21,691
2009 $47,857 $40,687 $13,051 $20,691
2008 $51,581 $41,047 $15,763 $20,709
2007 $46,623 $39,192 $13,935 $19,089
2006 $40,382 $37,388 $11,478 $18,362
2005 $38,157 $34,777 $11,212 $17,091
2004 $36,614 $33,519 $10,291 $16,251
2003 $32,110 $31,959 $8,410 $15,460
2002 $26,335 $30,952 $6,658 $14,532
2001 $24,430 $29,553 $5,281 $13,223
2000 $24,487 $29,221 $4,630 $11,872
1999 $27,079 $27,500 $4,802 $10,892
1998 $27,212 $26,531 $4,752 $10,415
1997 $26,572 $25,301 $4,606 $9,846
1996 $29,646 $24,427 $4,542 $9,388
1995 $30,207 $23,604 $4,509 $9,222
1994 $25,546 $22,553 $4,187 $8,888
1993 $23,987 $21,647 $3,887 $8,441
1992 $24,783 $21,209 $3,747 $8,284
1991 $22,323 $20,536 $3,361 $8,352
1990 $21,596 $19,396 $3,324 $9,169
1989 $17,401 - $2,902 -
1988 $17,510 - $2,812 -
1987 $16,329 - $2,566 -
1986 $13,032 - $2,331 -
1985 $9,136 - $2,020 -
1984 $8,956 - $1,991 -
1983 $9,500 - $2,050 -
1982 $9,373 - $2,255 -
1981 $9,348 - $2,213 -
1980 $10,827 - $2,158 -
1979 $9,755 - $1,865 -
1978 $8,173 - $1,618 -
1977 $6,784 - $1,388 -
1976 $5,656 - $1,249 -
1975 $5,265 - $1,083 -
1974 $4,613 - $956 -
1973 $3,875 - $876 -
1972 $2,913 - $710 -
1971 $2,372 - $607 -
1970 $2,051 - $559 -
1969 $1,834 - $527 -
1968 $1,686 - $476 -
1967 $1,577 - - -
1966 $1,494 - - -
1965 $1,381 - - -
1964 $1,275 - - -
1963 $1,173 - - -
1962 $1,093 - - -
1961 $1,037 - - -
1960 $940 - - -

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

GeoRank.org/economy/austria/hungary | CC BY

Austria's GDP per capita is $62,930, ranking 16/197, compared to $25,907 in Hungary, ranking 52/197. Adjusted for purchasing power (GDP per capita PPP), Austria ranks 19th at $73,911, while Hungary ranks 48th at $48,552.

Economic indicators

Austria Hungary
Gross domestic product
$579B
2025
$246B
2025
GDP rank
29/197
2025
55/197
2025
GDP growth
0.62%
2024-2025
0.51%
2024-2025
GDP per capita
$62,930
2025
$25,907
2025
GDP per capita rank
16/197
2025
52/197
2025
GDP per capita, PPP
$73,911
2024
$48,552
2024
GDP per capita PPP rank
19/197
2024
48/197
2024
Government debt
$466B
2025
$185B
2025
Debt-to-GDP ratio
80.5%
2025
75.2%
2025
Government debt per person
$50,654
2025
$19,473
2025
Government debt per person rank
10/185
2025
33/185
2025
Average annual personal income after taxes
$38,467
2026
$18,331
2026
Market capitalization of domestic companies
$211B
2025
$62.6B
2025
Number of millionaires n/a
27,000
2026
Number of billionaires
9
2026
4
2026
Income share by richest 10%
24.8%
2023
24.4%
2022
Income share by poorest 10%
2.8%
2023
2.8%
2022
Government expenditure, % of GDP
55.2%
2025
47.5%
2025
Consumer prices inflation
3.53%
2024-2025
4.41%
2024-2025
Central bank interest rate n/a
6.25%
2026
Unemployment rate
5.78%
2025
4.4%
2025
Population
9201502
9454659

Spending and national debt comparison by year

Austria
Spending

Debt
Hungary
Spending

Debt
1x
Year % of GDP
Austria Hungary
Government spending Government debt Government spending Government debt
2025 55.2% 80.5% 47.5% 75.2%
2024 55.2% 79.2% 46.9% 73.5%
2023 52.2% 77.8% 49.3% 73.2%
2022 53% 78.1% 48.9% 74.1%
2021 56% 82.4% 48.1% 76.2%
2020 57.3% 83.2% 51% 78.7%
2019 49.1% 71% 45.8% 65%
2018 49.2% 74.6% 45.9% 68.8%
2017 49.8% 79.1% 46.6% 72%
2016 50.6% 83.4% 46.7% 74.6%
2015 51.2% 85.6% 50.4% 75.7%
2014 52.4% 85.2% 50% 76.5%
2013 52.4% 82.4% 50.1% 77.2%
2012 51.8% 82.9% 49.2% 78.4%
2011 51.3% 83.4% 49.1% 80.5%
2010 53.4% 83.7% 48.9% 80.2%
2009 54.6% 80.8% 50.7% 78.2%
2008 50.4% 69.5% 48.8% 71.8%
2007 49.7% 65.8% 49.9% 65.6%
2006 50.9% 68.2% 51.4% 64.5%
2005 51.7% 69.4% 49.4% 60.6%
2004 54.3% 65.9% 48.8% 58.9%
2003 51.8% 66.4% 49.2% 58.2%
2002 51.6% 67.4% 51% 55.6%
2001 51.8% 67.2% 47.2% 52.2%
2000 50.9% 66.1% 47.3% 55.6%
1999 50.5% 61.3% 48.9% 60.3%
1998 54.4% 69.2% 50.7% 60.4%
1997 52.5% 63.4% 49.5% 62.2%
1996 55.9% 68.2% 50.9% 71.2%
1995 56.1% 68.2% 55% 83.9%
1994 54.3% 64.1% - 86.2%
1993 54.3% 61% - 87.2%
1992 49.3% 56.3% - 76.5%
1991 47.9% 56.4% - 74.2%
1990 46.8% 56.2% - 63.7%
1989 51.6% 56.6% - 70.7%
1988 53.1% 57.7% - -
1987 54.5% 55.5% - -
1986 54.3% 52% - -
1985 53.5% 47.8% - -
1984 52.6% 46% - -
1983 52.4% 43.7% - -
1982 52% 39.7% - -
1981 51.5% 37.5% - -
1980 50% 35.6% - -
1979 49.8% 34.1% - -
1978 50.8% 32.2% - -
1977 47.6% 28.5% - -
1976 47.9% 26.2% - -
1975 46.1% 22.8% - -
1974 42% 16.8% - -
1973 41.5% 16.7% - -
1972 40.1% 16.7% - -
1971 40% 17.4% - -
1970 39.5% 18.6% - -
1969 40.7% 16.8% - -
1968 40.9% 16.8% - -
1967 40.7% 15.6% - -
1966 38.7% 14.1% - -
1965 38.3% 14.8% - -
1964 38.7% 15.5% - -
1963 38.6% 15.6% - -
1962 37.6% 15.5% - -
1961 35.7% 16% - -
1960 36.3% 17.7% - -

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1994, retrieved 2026-07-08).

GeoRank.org/economy/austria/hungary | CC BY

In 2025, Austria's government spending was $320B, accounting for 55.2% of its GDP, while Hungary spent $117B, or 47.5% of GDP.

Debt-to-GDP ratio is 80.5% in Austria and 75.2% in Hungary, ranking 42/185 and 50/185, respectively.

Government deficit by year

Deficit/surplus
Austria

Hungary
1x
Year Deficit/surplus, % of GDP
Austria Hungary
2025 -4.52% -4.68%
2024 -4.68% -4.9%
2023 -2.59% -6.77%
2022 -3.41% -6.19%
2021 -5.69% -7.11%
2020 -8.2% -7.49%
2019 0.54% -2.02%
2018 0.2% -2.05%
2017 -0.78% -2.45%
2016 -1.45% -1.79%
2015 -0.48% -2%
2014 -1.92% -2.77%
2013 -1.99% -2.6%
2012 -2.18% -2.33%
2011 -2.48% -5.22%
2010 -4.46% -4.44%
2009 -5.38% -4.76%
2008 -1.57% -3.78%
2007 -1.56% -5.09%
2006 -2.61% -9.27%
2005 -2.59% -7.79%
2004 -4.94% -6.6%
2003 -1.84% -7.19%
2002 -1.43% -8.79%
2001 -0.71% -4%
2000 -2.07% -3.04%
1999 -2.63% -5.27%
1998 -2.68% -7.41%
1997 -2.38% -5.54%
1996 -4.38% -4.36%
1995 -6.17% -8.57%
1994 -5.04% -
1993 -4.57% -
1992 -2.15% -
1991 -2.96% -
1990 -2.58% -
1989 -3.07% -
1988 -3.43% -
1987 -4.33% -
1986 -3.84% -
1985 -2.71% -
1984 -2.67% -
1983 -4.22% -
1982 -3.29% -
1981 -1.79% -
1980 -1.62% -
1979 -2.3% -
1978 -2.67% -
1977 -2.11% -
1976 -3.61% -
1975 -2.41% -
1974 1.23% -
1973 1.24% -
1972 1.97% -
1971 1.46% -
1970 1.16% -
1969 -0.08% -
1968 -0.83% -
1967 -0.56% -
1966 1.73% -
1965 1.38% -
1964 0.48% -
1963 -0.5% -
1962 1.12% -
1961 1.68% -
1960 -0.49% -
1959 -2.16% -
1958 -3.52% -
1957 -0.7% -
1956 -0.78% -
1955 -0.5% -
1954 -0.35% -
1953 -0.24% -
1952 -0.73% -
1951 -1.57% -
1950 -7.72% -
1949 -9.23% -
1948 -9.3% -
1947 - -
1946 - -
1945 - -
1944 - -
1943 - -0.17%
1942 - 0.31%
1941 - 0.2%
1940 - -0.07%
1939 - 0.19%
1938 - -0.11%
1937 -2.84% -0.01%
1936 -3.91% 0.08%
1935 -5.46% 0.03%
1934 -5.28% 0.04%
1933 -3.55% -0.03%
1932 -9.16% -0.22%
1931 -11.5% -0.32%
1930 -9.68% -0.26%
1929 -6.83% 0.02%
1928 -7.63% 0.12%
1927 -7.3% 0.15%
1926 -6.18% -
1925 -4.96% -
1924 -5.69% -
1923 - -
1922 - -
1921 - -
1920 - -
1919 - -
1918 - -
1917 - -
1916 - -
1915 - -
1914 - -
1913 - -
1912 -0.69% -
1911 0.03% -
1910 -0.42% -
1909 -5.51% -
1908 -1.24% -
1907 -2.73% -
1906 -0.05% -
1905 -0.71% -
1904 -1.12% -
1903 -0.97% -
1902 -0.75% -
1901 -0.56% -
1900 -0.05% -
1899 -0.08% -
1898 -0.17% -
1897 0.1% -
1896 0.03% -
1895 0.36% -
1894 -1.16% -
1893 -1.31% -
1892 -0.86% -
1891 -4.01% -
1890 -0.26% -
1889 -1.61% -
1888 -0.97% -
1887 -1.09% -
1886 -0.43% -
1885 -0.57% -
1884 -6.43% -
1883 -0.69% -
1882 -1.06% -
1881 -3.91% -
1880 -1.4% -

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/austria/hungary | CC BY

In 2025, Austria's government deficit, the difference between spending and revenue, was $26.2B, equivalent to 4.52% of GDP. This compares to Hungary's deficit of $11.5B, or 4.68% of GDP.

Over the past 31 years, Austria recorded a fiscal deficit in 29 of those years, while Hungary ran a deficit in 31 years. On average, Austria posted an annual deficit equal to 2.81% of GDP, compared to deficit of 5.04% of GDP for Hungary.

Inflation comparison by year

Inflation
Austria

Hungary
1x
Year Consumer prices inflation
Austria Hungary
2025 3.53% 4.41%
2024 2.94% 3.7%
2023 7.81% 17.1%
2022 8.55% 14.6%
2021 2.77% 5.11%
2020 1.38% 3.33%
2019 1.53% 3.34%
2018 2% 2.85%
2017 2.08% 2.35%
2016 0.89% 0.39%
2015 0.9% -0.06%
2014 1.61% -0.23%
2013 2% 1.73%
2012 2.49% 5.65%
2011 3.29% 3.93%
2010 1.81% 4.86%
2009 0.51% 4.21%
2008 3.22% 6.04%
2007 2.17% 7.96%
2006 1.44% 3.93%
2005 2.3% 3.56%
2004 2.06% 6.74%
2003 1.36% 4.66%
2002 1.81% 5.27%
2001 2.65% 9.12%
2000 2.34% 9.8%
1999 0.57% 10%
1998 0.92% 14.2%
1997 1.31% 18.3%

Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).

GeoRank.org/economy/austria/hungary | CC BY

Over the past 29 years, Austria has recorded an average annual inflation rate of 2.35%, compared with 6.1% in Hungary. In 2025, inflation was 3.53% in Austria and 4.41% in Hungary.

Top exports between countries

Austria
Export category Export value
Machinery & equipment $2.88B
Raw materials & minerals $1.48B
Transport & tourism services $1.39B
Chemicals & pharma $1.03B
Metals $880M
Business & finance services $485M
Textiles & consumer goods $454M
Processed food, beverages & tobacco $428M
Wood & paper products $367M
IT & IP services $293M
Hungary
Export category Export value
Machinery & equipment $2.5B
Transport & tourism services $2.23B
Raw materials & minerals $680M
Metals $665M
Processed food, beverages & tobacco $545M
Chemicals & pharma $539M
Raw agricultural goods $477M
Textiles & consumer goods $369M
Business & finance services $302M
Wood & paper products $280M

Balance of trade

Austria Hungary
Current account balance
$10.4B
2025
$4.08B
2025
Current account balance ranking
24/190
2025
34/190
2025
Current account balance, % of GDP
+1.79%
2025
+1.65%
2025
Goods imports
$208B
2025
$139B
2025
Goods exports
$214B
2025
$136B
2025
Service imports
$98.3B
2025
$29.8B
2025
Service exports
$105B
2025
$43.1B
2025
Imports of goods and services, % of GDP
52.3%
2025
68.1%
2025
Exports of goods and services, % of GDP
54.7%
2025
72.6%
2025

Economic freedom indices

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

Austria Hungary
Economic freedom 69.8 62.5
Economic freedom ranking 38/197 86/197
Property rights 95.7 67.3
Government integrity 75 44
Judicial effectiveness 94.8 61.9
Tax burden 45.7 85.1
Government spending 12.8 30.2
Fiscal health 67.1 32.7
Business freedom 78.7 70.8
Labor freedom 81.6 56.5
Monetary freedom 76.4 72.1
Trade freedom 79.4 79.4
Investment freedom 60 80
Financial freedom 70 70

Economic freedom comparison by year

Austria
Hungary
1x
Year Economic freedom index
Austria Hungary
2026 69.8 62.5
2025 69.7 61.4
2024 68.4 61.2
2023 71.1 64.1
2022 73.8 66.9
2021 73.9 67.2
2020 73.3 66.4
2019 72 65
2018 71.8 66.7
2017 72.3 65.8
2016 71.7 66
2015 71.2 66.8
2014 72.4 67
2013 71.8 67.3
2012 70.3 67.1
2011 71.9 66.6
2010 71.6 66.1
2009 71.2 66.8
2008 71.4 67.6
2007 71.6 64.8
2006 71.1 65
2005 68.8 63.5
2004 67.6 62.7
2003 67.6 63
2002 67.4 64.5
2001 68.1 65.6
2000 68.4 64.4
1999 64 59.6
1998 65.4 56.9
1997 65.2 55.3
1996 68.9 56.8
1995 70 55.2

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

GeoRank.org/economy/austria/hungary | CC BY

The Economic Freedom Index for Austria is 69.8, ranking 38/197, compared to 62.5 for Hungary, ranking 86/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Austria Hungary
Services, % of GDP
64.1%
2025
60.1%
2025
Industry, % of GDP
24%
2025
23%
2025
Agriculture, forestry, and fishing, % of GDP
1.26%
2025
2.65%
2025
GNI, Atlas method
$556B
2025
$227B
2025
GNI per capita, PPP
$77,010
2025
$48,630
2025
Total reserves including gold
$53.4B
2025
$59.1B
2025
Total reserves ranking
46/177
2025
42/177
2025
Net foreign direct investment
$5.61B
2025
$9.1B
2025
Net inflows of foreign direct investment
$13.7B
2024
-$61.3B
2024
Net outflows of foreign direct investment
$13.8B
2024
-$76.3B
2024
Poverty at national poverty lines
14.8%
2021
12.1%
2021
Gross capital formation, % of GDP
23.7%
2025
22.2%
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).

GeoRank.org/economy/austria/hungary | CC BY

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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 (1880–1994, 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. 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)

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.

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.