Skip to content

Economy of Bahrain vs Netherlands compared: GDP & Debt

Updated on by Georank

Bahrain has a GDP of $49B compared to $1.33T for the Netherlands, ranking 98/197 and 18/197 by economy size, respectively.

Bahrain has $72.3B in government debt (147.6% of GDP), compared to $578B (43.3% of GDP) in the Netherlands.

Bahrain vs Netherlands GDP by year

Bahrain
Netherlands
1x
Year GDP, current $
Bahrain Netherlands
2025 $48,965,725,532 $1,332,767,651,100
2024 $47,210,732,713 $1,213,936,238,063
2023 $46,192,260,638 $1,135,475,867,551
2022 $46,458,191,489 $1,046,540,797,549
2021 $40,840,212,766 $1,054,472,123,450
2020 $35,837,632,979 $932,560,861,701
2019 $40,446,808,511 $928,903,005,576
2018 $39,567,978,723 $929,733,599,797
2017 $37,204,813,830 $848,233,537,846
2016 $33,884,680,851 $797,163,949,290
2015 $32,523,297,872 $775,743,675,303
2014 $34,772,526,596 $901,556,501,756
2013 $33,823,324,468 $883,951,539,007
2012 $31,963,404,255 $845,689,017,066
2011 $29,914,680,851 $913,140,741,333
2010 $26,805,984,043 $852,464,982,433
2009 $22,938,218,085 $878,954,223,140
2008 $25,710,904,255 $957,901,566,041
2007 $21,730,000,000 $853,499,460,873
2006 $18,504,760,638 $737,593,995,289
2005 $15,968,723,404 $688,133,699,636
2004 $13,150,159,574 $661,224,886,143
2003 $11,074,813,830 $582,435,617,082
2002 $9,593,510,638 $475,529,972,123
2001 $8,976,196,809 $432,536,219,669
2000 $9,062,898,936 $417,649,282,154
1999 $7,528,469,149 $447,778,514,140
1998 $7,031,309,043 $438,612,530,549
1997 $7,219,407,713 $417,506,211,882
1996 $6,938,166,755 $451,372,549,020
1995 $6,651,180,851 $452,967,334,614
1994 $6,330,627,926 $379,688,232,232
1993 $5,913,001,064 $354,070,495,966
1992 $5,402,232,447 $363,497,050,125
1991 $5,248,911,170 $327,982,316,124
1990 $4,809,511,005 $318,799,003,994
1989 $4,393,093,963 $258,716,904,292
1988 $4,209,834,173 $262,295,966,105
1987 $3,856,922,694 $245,406,949,521
1986 $3,470,746,843 $201,157,708,221
1985 $4,152,376,484 $144,057,523,222
1984 $4,440,874,566 $144,124,462,912
1983 $4,247,030,468 $153,671,294,109
1982 $4,145,421,080 $158,712,765,536
1981 $3,943,109,532 $164,375,775,854
1980 $3,493,834,468 $195,439,301,707
1979 $2,710,160,739 $179,933,827,310
1978 $2,272,042,965 $156,089,077,205
1977 $1,989,060,283 $127,203,923,857
1976 $1,581,709,519 $109,329,386,564
1975 $1,099,107,601 $100,397,061,694
1974 $1,042,176,884 $87,371,810,804
1973 $761,132,545 $71,946,639,603
1972 $534,081,184 $54,787,070,173
1971 $422,181,562 $44,644,730,576
1970 $391,577,364 $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/bahrain/netherlands | CC BY

GDP per capita in Bahrain vs Netherlands by year

Bahrain
GDP per capita

GDP per capita, PPP
Netherlands
GDP per capita

GDP per capita, PPP
1x
Year Current $
Bahrain Netherlands
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $30,597 - $73,684 -
2024 $29,717 $66,941 $67,465 $86,174
2023 $29,290 $64,171 $63,516 $81,729
2022 $30,471 $61,678 $59,123 $78,630
2021 $27,148 $54,955 $60,142 $68,574
2020 $24,343 $53,436 $53,468 $62,597
2019 $27,260 $56,600 $53,555 $62,345
2018 $26,324 $51,993 $53,955 $58,819
2017 $24,785 $50,185 $49,514 $56,038
2016 $23,800 $47,429 $46,809 $53,162
2015 $23,734 $48,034 $45,794 $50,957
2014 $26,452 $54,299 $53,457 $49,751
2013 $26,990 $56,310 $52,602 $49,622
2012 $26,439 $56,713 $50,474 $47,653
2011 $25,033 $52,677 $54,702 $47,004
2010 $21,819 $49,255 $51,306 $45,301
2009 $19,465 $48,626 $53,172 $44,959
2008 $23,299 $50,330 $58,247 $46,714
2007 $20,908 $49,347 $52,101 $44,203
2006 $19,267 $48,009 $45,124 $41,208
2005 $17,966 $47,268 $42,165 $37,778
2004 $15,964 $46,317 $40,611 $35,961
2003 $14,486 $45,427 $35,897 $34,286
2002 $13,501 $45,091 $29,447 $34,568
2001 $13,573 $46,162 $26,956 $33,259
2000 $14,214 $45,688 $26,225 $31,895
1999 $12,123 $43,561 $28,319 $29,316
1998 $11,625 $42,281 $27,924 $27,749
1997 $12,255 $40,965 $26,745 $26,062
1996 $12,092 $40,106 $29,064 $24,564
1995 $11,901 $38,839 $29,301 $23,480
1994 $11,629 $37,579 $24,683 $22,414
1993 $11,152 $37,870 $23,156 $21,443
1992 $10,460 $33,648 $23,939 $20,831
1991 $10,434 $31,657 $21,764 $20,177
1990 $9,343 $26,902 $21,322 $19,203
1989 $8,833 - $17,423 -
1988 $8,772 - $17,771 -
1987 $8,333 - $16,734 -
1986 $7,777 - $13,804 -
1985 $9,649 - $9,941 -
1984 $10,697 - $9,992 -
1983 $10,599 - $10,696 -
1982 $10,712 - $11,089 -
1981 $10,557 - $11,537 -
1980 $9,733 - $13,812 -
1979 $7,891 - $12,817 -
1978 $6,926 - $11,196 -
1977 $6,358 - $9,180 -
1976 $5,310 - $7,937 -
1975 $3,880 - $7,346 -
1974 $3,874 - $6,450 -
1973 $2,981 - $5,353 -
1972 $2,206 - $4,110 -
1971 $1,830 - $3,384 -
1970 $1,742 - $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/bahrain/netherlands | CC BY

Bahrain's GDP per capita is $30,597, ranking 44/197, compared to $73,684 in the Netherlands, ranking 12/197. Adjusted for purchasing power (GDP per capita PPP), Bahrain ranks 26th at $66,941, while the Netherlands ranks 11th at $86,174.

Economic indicators

Bahrain Netherlands
Gross domestic product
$49B
2025
$1.33T
2025
GDP rank
98/197
2025
18/197
2025
GDP growth
3.48%
2024-2025
1.78%
2024-2025
GDP per capita
$30,597
2025
$73,684
2025
GDP per capita rank
44/197
2025
12/197
2025
GDP per capita, PPP
$66,941
2024
$86,174
2024
GDP per capita PPP rank
26/197
2024
11/197
2024
Government debt
$72.3B
2025
$578B
2025
Debt-to-GDP ratio
147.6%
2025
43.3%
2025
Government debt per person
$45,165
2025
$31,942
2025
Government debt per person rank
13/185
2025
23/185
2025
Average annual personal income after taxes
$23,191
2026
$46,674
2026
Market capitalization of domestic companies
$21.3B
2025
$1.1T
2017
Number of millionaires n/a
1,294,000
2026
Number of billionaires n/a
13
2026
Income share by richest 10% n/a
21.4%
2021
Income share by poorest 10% n/a
3.6%
2021
Government expenditure, % of GDP
29.4%
2025
45.1%
2025
Consumer prices inflation
-0.14%
2024-2025
3.26%
2024-2025
Central bank interest rate
4.25%
2025
n/a
Unemployment rate
0.89%
2015
3.9%
2025
Population
1649267
18243998

Spending and national debt comparison by year

Bahrain
Spending

Debt
Netherlands
Spending

Debt
1x
Year % of GDP
Bahrain Netherlands
Government spending Government debt Government spending Government debt
2025 29.4% 147.6% 45.1% 43.3%
2024 28.9% 133.7% 44.4% 43.7%
2023 29% 123% 44% 45.8%
2022 28.4% 111.6% 43.3% 48.4%
2021 30.6% 122.3% 45.9% 50.5%
2020 34.6% 125.7% 47.8% 53.4%
2019 31.2% 97.1% 42.1% 47.7%
2018 32.1% 90.4% 42.4% 51.6%
2017 30.7% 84% 42.8% 56%
2016 33.3% 77.4% 43.9% 60.9%
2015 34.8% 63.2% 45.3% 63.8%
2014 27.3% 42.6% 46.7% 67.2%
2013 32% 42.3% 47.5% 67.2%
2012 31.1% 34.8% 47.6% 65.7%
2011 30.2% 31.6% 47.8% 61.2%
2010 31.1% 28.8% 48.9% 58.9%
2009 24.6% 20.5% 48.4% 56.3%
2008 22.7% 12.1% 44.3% 54.4%
2007 22.4% 15.7% 43.3% 42.7%
2006 23.1% 19.4% 44% 45%
2005 23.9% 23.2% 43.4% 49.6%
2004 25% 28.2% 44.7% 50.1%
2003 28.1% 31.1% 45.8% 49.8%
2002 30.6% 27.2% 44.8% 48.7%
2001 26.5% 25% 44.1% 49.4%
2000 22.2% 24.7% 43.2% 52.2%
1999 27.1% 24.7% 44.3% 58.6%
1998 25.7% 20% 44.6% 62.7%
1997 31% 14.8% 45.7% 65.7%
1996 22.7% 13.1% 47.3% 71.2%
1995 25.1% 13.6% 53.9% 73%
1994 26.1% 5.62% 49.4% 73.5%
1993 26.7% 5.95% 50.9% 76.7%
1992 29.4% 6.45% 50.2% 75.6%
1991 28.5% 6.71% 49.6% 74.8%
1990 32.4% 7.24% 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 (1960–1989, retrieved 2026-07-08).

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

In 2025, Bahrain's government spending was $14.4B, accounting for 29.4% of its GDP, while the Netherlands spent $602B, or 45.1% of GDP.

Debt-to-GDP ratio is 147.6% in Bahrain and 43.3% in the Netherlands, ranking 6/185 and 121/185, respectively.

Government deficit by year

Deficit/surplus
Bahrain

Netherlands
1x
Year Deficit/surplus, % of GDP
Bahrain Netherlands
2025 -13% -1.84%
2024 -11% -0.94%
2023 -9.66% -0.37%
2022 -6.03% 0.002%
2021 -10.6% -2.26%
2020 -17.3% -3.72%
2019 -8.57% 1.91%
2018 -11.3% 1.49%
2017 -13.4% 1.35%
2016 -16.6% 0.23%
2015 -17.5% -1.84%
2014 -3.32% -2.17%
2013 -8.55% -2.87%
2012 -5.77% -3.83%
2011 -4.9% -4.42%
2010 -9.29% -5.3%
2009 -5.36% -5.06%
2008 4.08% -0.06%
2007 1.52% -0.16%
2006 2.24% 0.04%
2005 2.8% -0.51%
2004 0.24% -1.82%
2003 -1.7% -3.19%
2002 -3.27% -2.23%
2001 0.7% -0.47%
2000 7.33% 1.14%
1999 -4.85% 0.28%
1998 -5.49% -1.34%
1997 -6.39% -1.6%
1996 0.24% -1.91%
1995 -3.99% -8.72%
1994 -5.18% -3.53%
1993 -2.77% -3.13%
1992 -5.41% -3.12%
1991 -3.47% -2.05%
1990 -6.79% -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/bahrain/netherlands | CC BY

In 2025, Bahrain's government deficit, the difference between spending and revenue, was $6.35B, equivalent to 13% of GDP. This compares to the Netherlands' deficit of $24.5B, or 1.84% of GDP.

Over the past 36 years, Bahrain recorded a fiscal deficit in 28 of those years, while the Netherlands ran a deficit in 28 years. On average, Bahrain posted an annual deficit equal to 5.61% of GDP, compared to deficit of 1.84% of GDP for the Netherlands.

Inflation comparison by year

Inflation
Bahrain

Netherlands
1x
Year Consumer prices inflation
Bahrain Netherlands
2025 -0.14% 3.26%
2024 0.92% 3.35%
2023 0.07% 3.84%
2022 3.63% 10%
2021 -0.61% 2.68%
2020 -2.32% 1.27%
2019 1.01% 2.63%
2018 2.09% 1.7%
2017 1.39% 1.38%
2016 2.79% 0.32%
2015 1.85% 0.6%
2014 2.65% 0.98%
2013 3.3% 2.51%
2012 2.76% 2.46%
2011 -0.4% 2.34%
2010 1.96% 1.28%
2009 2.8% 1.19%
2008 3.53% 2.49%
2007 3.26% 1.61%
2006 2.01% 1.1%
2005 2.59% 1.69%
2004 2.35% 1.26%
2003 1.59% 2.09%
2002 -0.5% 3.29%
2001 -1.21% 4.16%
2000 -0.7% 2.36%
1999 -1.29% 2.16%
1998 -0.37% 1.96%
1997 2.43% 2.11%

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

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

Over the past 29 years, Bahrain has recorded an average annual inflation rate of 1.29%, compared with 2.35% in the Netherlands. In 2025, inflation was -0.14% in Bahrain and 3.26% in the Netherlands.

Top exports between countries

Bahrain
Export category Export value
Metals $536M
Machinery & equipment $23.3M
Textiles & consumer goods $7.89M
Processed food, beverages & tobacco $3.79M
Raw materials & minerals $3.31M
Chemicals & pharma $1.95M
Animal & marine products $1.26M
Precious metals & jewellery $83K
Wood & paper products $38K
Raw agricultural goods $23K
Netherlands
Export category Export value
Machinery & equipment $78.9M
Processed food, beverages & tobacco $26.9M
Chemicals & pharma $26.1M
Animal & marine products $14.4M
Raw agricultural goods $12.6M
Metals $4.83M
Raw materials & minerals $4.24M
Textiles & consumer goods $4.01M
Precious metals & jewellery $3.95M
Miscellaneous $2.71M

Balance of trade

Bahrain Netherlands
Current account balance
$2.28B
2024
$111B
2024
Current account balance ranking
43/190
2024
6/190
2024
Current account balance, % of GDP
+4.83%
2024
+9.14%
2024
Goods imports
$20.7B
2024
$606B
2024
Goods exports
$24.3B
2024
$693B
2024
Service imports
$12.4B
2024
$262B
2024
Service exports
$17B
2024
$308B
2024
Imports of goods and services, % of GDP
70%
2024
69.5%
2025
Exports of goods and services, % of GDP
87.5%
2024
80.7%
2025

Economic freedom indices

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

Bahrain Netherlands
Economic freedom 65.7 78.5
Economic freedom ranking 63/197 11/197
Property rights 60.9 96
Government integrity 45.9 86.8
Judicial effectiveness 30 96.1
Tax burden 99.9 54
Government spending 75 42.2
Fiscal health 0 95.9
Business freedom 75.9 85
Labor freedom 55.5 59.3
Monetary freedom 88.8 77
Trade freedom 86.8 79.4
Investment freedom 90 90
Financial freedom 80 80

Economic freedom comparison by year

Bahrain
Netherlands
1x
Year Economic freedom index
Bahrain Netherlands
2026 65.7 78.5
2025 65.6 78.2
2024 63.4 77.3
2023 62.5 78
2022 62 79.5
2021 69.9 76.8
2020 66.3 77
2019 66.4 76.8
2018 67.7 76.2
2017 68.5 75.8
2016 74.3 74.6
2015 73.4 73.7
2014 75.1 74.2
2013 75.5 73.5
2012 75.2 73.3
2011 77.7 74.7
2010 76.3 75
2009 74.8 77
2008 72.2 77.4
2007 71.2 75.5
2006 71.6 75.4
2005 71.2 72.9
2004 75.1 74.5
2003 76.3 74.6
2002 75.6 75.1
2001 75.9 73
2000 75.7 70.4
1999 75.2 70.2
1998 75.6 69.2
1997 76.1 70.4
1996 76.4 69.7
1995 76.2 -

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

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

The Economic Freedom Index for Bahrain is 65.7, ranking 63/197, 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

Bahrain Netherlands
Services, % of GDP
54.3%
2025
70.4%
2025
Industry, % of GDP
41.2%
2025
17.7%
2025
Agriculture, forestry, and fishing, % of GDP
0.24%
2025
1.68%
2025
GNI, Atlas method
$46.1B
2025
$1.24T
2025
GNI per capita, PPP
$65,500
2025
$85,480
2025
Total reserves including gold
$5.27B
2025
$118B
2025
Total reserves ranking
101/177
2025
27/177
2025
Net foreign direct investment
-$2.43B
2024
$11.1B
2024
Net inflows of foreign direct investment
$2.7B
2024
-$17.1B
2024
Net outflows of foreign direct investment
$275M
2024
-$5.93B
2024
Poverty at national poverty lines n/a
14.5%
2021
Gross capital formation, % of GDP
28.4%
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/bahrain/netherlands | CC BY

Compare countries by 7 more topics

Help us show the world through your eyes

Share a photo of your city and help others discover what it looks like to live there. Your contribution makes our data come alive.

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 (2023–2025, 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.