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Economy of Bahrain vs New Zealand compared: GDP & Debt

Updated on by Georank

Bahrain has a GDP of $49B compared to $264B for New Zealand, ranking 98/197 and 53/197 by economy size, respectively.

Bahrain has $72.3B in government debt (147.6% of GDP), compared to $145B (54.7% of GDP) in New Zealand.

Bahrain vs New Zealand GDP by year

Bahrain
New Zealand
1x
Year GDP, current $
Bahrain New Zealand
2025 $48,965,725,532 $264,057,413,740
2024 $47,210,732,713 $261,497,198,364
2023 $46,192,260,638 $256,372,177,758
2022 $46,458,191,489 $249,723,029,451
2021 $40,840,212,766 $253,732,493,988
2020 $35,837,632,979 $213,318,129,989
2019 $40,446,808,511 $213,088,034,258
2018 $39,567,978,723 $211,726,161,989
2017 $37,204,813,830 $206,561,943,051
2016 $33,884,680,851 $188,980,351,891
2015 $32,523,297,872 $178,147,457,243
2014 $34,772,526,596 $201,435,445,068
2013 $33,823,324,468 $190,943,478,290
2012 $31,963,404,255 $176,508,049,114
2011 $29,914,680,851 $168,458,838,711
2010 $26,805,984,043 $146,887,902,524
2009 $22,938,218,085 $121,663,439,315
2008 $25,710,904,255 $133,437,126,590
2007 $21,730,000,000 $137,188,946,866
2006 $18,504,760,638 $111,538,810,713
2005 $15,968,723,404 $114,720,129,550
2004 $13,150,159,574 $103,905,210,084
2003 $11,074,813,830 $88,250,885,550
2002 $9,593,510,638 $66,627,729,311
2001 $8,976,196,809 $53,872,425,917
2000 $9,062,898,936 $52,623,281,957
1999 $7,528,469,149 $58,762,260,626
1998 $7,031,309,043 $56,227,169,851
1997 $7,219,407,713 $66,075,143,415
1996 $6,938,166,755 $70,140,835,299
1995 $6,651,180,851 $63,918,703,507
1994 $6,330,627,926 $55,314,732,279
1993 $5,913,001,064 $46,775,620,817
1992 $5,402,232,447 $41,649,829,860
1991 $5,248,911,170 $42,745,329,732
1990 $4,809,511,005 $45,495,129,385
1989 $4,393,093,963 $43,920,222,525
1988 $4,209,834,173 $45,176,811,594
1987 $3,856,922,694 $40,376,354,070
1986 $3,470,746,843 $30,604,668,357
1985 $4,152,376,484 $24,679,795,396
1984 $4,440,874,566 $21,665,975,319
1983 $4,247,030,468 $24,309,279,706
1982 $4,145,421,080 $24,164,603,059
1981 $3,943,109,532 $24,417,617,184
1980 $3,493,834,468 $23,244,547,385
1979 $2,710,160,739 $20,731,243,113
1978 $2,272,042,965 $18,530,518,395
1977 $1,989,060,283 $15,446,825,318
1976 $1,581,709,519 $13,604,832,424
1975 $1,099,107,601 $12,861,983,284
1974 $1,042,176,884 $13,940,981,798
1973 $761,132,545 $12,802,281,898
1972 $534,081,184 $9,567,331,065
1971 $422,181,562 $7,911,136,757
1970 $391,577,364 $6,495,605,331
1969 - $5,814,357,709
1968 - $5,228,045,415
1967 - $6,016,017,227
1966 - $5,917,437,693
1965 - $5,706,251,400
1964 - $7,340,766,415
1963 - $6,699,741,645
1962 - $6,133,158,532
1961 - $5,721,994,864
1960 - $5,536,098,360

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

GeoRank.org/economy/bahrain/new-zealand | CC BY

GDP per capita in Bahrain vs New Zealand by year

Bahrain
GDP per capita

GDP per capita, PPP
New Zealand
GDP per capita

GDP per capita, PPP
1x
Year Current $
Bahrain New Zealand
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $30,597 - $49,591 -
2024 $29,717 $66,941 $49,432 $55,551
2023 $29,290 $64,171 $49,302 $54,697
2022 $30,471 $61,678 $49,142 $54,034
2021 $27,148 $54,955 $49,902 $48,249
2020 $24,343 $53,436 $42,055 $45,513
2019 $27,260 $56,600 $42,872 $45,278
2018 $26,324 $51,993 $43,204 $42,527
2017 $24,785 $50,185 $42,912 $42,244
2016 $23,800 $47,429 $40,088 $39,989
2015 $23,734 $48,034 $38,649 $37,513
2014 $26,452 $54,299 $44,600 $37,331
2013 $26,990 $56,310 $42,985 $36,263
2012 $26,439 $56,713 $40,042 $33,055
2011 $25,033 $52,677 $38,426 $32,739
2010 $21,819 $49,255 $33,762 $31,305
2009 $19,465 $48,626 $28,277 $30,746
2008 $23,299 $50,330 $31,325 $29,896
2007 $20,908 $49,347 $32,480 $29,331
2006 $19,267 $48,009 $26,655 $27,732
2005 $17,966 $47,268 $27,751 $25,677
2004 $15,964 $46,317 $25,420 $25,124
2003 $14,486 $45,427 $21,914 $23,996
2002 $13,501 $45,091 $16,874 $23,306
2001 $13,573 $46,162 $13,883 $22,511
2000 $14,214 $45,688 $13,641 $21,500
1999 $12,123 $43,561 $15,322 $20,579
1998 $11,625 $42,281 $14,738 $19,323
1997 $12,255 $40,965 $17,474 $19,100
1996 $12,092 $40,106 $18,794 $18,392
1995 $11,901 $38,839 $17,400 $17,864
1994 $11,629 $37,579 $15,280 $17,108
1993 $11,152 $37,870 $13,094 $15,900
1992 $10,460 $33,648 $11,793 $14,877
1991 $10,434 $31,657 $12,230 $14,501
1990 $9,343 $26,902 $13,663 $14,812
1989 $8,833 - $13,312 -
1988 $8,772 - $13,759 -
1987 $8,333 - $12,331 -
1986 $7,777 - $9,428 -
1985 $9,649 - $7,601 -
1984 $10,697 - $6,714 -
1983 $10,599 - $7,598 -
1982 $10,712 - $7,656 -
1981 $10,557 - $7,814 -
1980 $9,733 - $7,467 -
1979 $7,891 - $6,668 -
1978 $6,926 - $5,937 -
1977 $6,358 - $4,951 -
1976 $5,310 - $4,374 -
1975 $3,880 - $4,172 -
1974 $3,874 - $4,611 -
1973 $2,981 - $4,323 -
1972 $2,206 - $3,295 -
1971 $1,830 - $2,773 -
1970 $1,742 - $2,311 -
1969 - - $2,097 -
1968 - - $1,902 -
1967 - - $2,208 -
1966 - - $2,211 -
1965 - - $2,171 -
1964 - - $2,839 -
1963 - - $2,646 -
1962 - - $2,471 -
1961 - - $2,365 -
1960 - - $2,334 -

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

GeoRank.org/economy/bahrain/new-zealand | CC BY

Bahrain's GDP per capita is $30,597, ranking 44/197, compared to $49,591 in New Zealand, ranking 26/197. Adjusted for purchasing power (GDP per capita PPP), Bahrain ranks 26th at $66,941, while New Zealand ranks 38th at $55,551.

Economic indicators

Bahrain New Zealand
Gross domestic product
$49B
2025
$264B
2025
GDP rank
98/197
2025
53/197
2025
GDP growth
3.48%
2024-2025
0.46%
2024-2025
GDP per capita
$30,597
2025
$49,591
2025
GDP per capita rank
44/197
2025
26/197
2025
GDP per capita, PPP
$66,941
2024
$55,551
2024
GDP per capita PPP rank
26/197
2024
38/197
2024
Government debt
$72.3B
2025
$145B
2025
Debt-to-GDP ratio
147.6%
2025
54.7%
2025
Government debt per person
$45,165
2025
$27,139
2025
Government debt per person rank
13/185
2025
27/185
2025
Average annual personal income after taxes
$23,191
2026
$36,222
2026
Market capitalization of domestic companies
$21.3B
2025
$103B
2025
Number of billionaires n/a
5
2026
Government expenditure, % of GDP
29.4%
2025
41.6%
2025
Consumer prices inflation
-0.14%
2024-2025
2.84%
2024-2025
Central bank interest rate
4.25%
2025
2.25%
2025
Unemployment rate
0.89%
2015
5.26%
2025
Population
1649267
5380024

Spending and national debt comparison by year

Bahrain
Spending

Debt
New Zealand
Spending

Debt
1x
Year % of GDP
Bahrain New Zealand
Government spending Government debt Government spending Government debt
2025 29.4% 147.6% 41.6% 54.7%
2024 28.9% 133.7% 41.7% 51.4%
2023 29% 123% 41% 47.3%
2022 28.4% 111.6% 41.7% 46.9%
2021 30.6% 122.3% 41.8% 47.5%
2020 34.6% 125.7% 41.9% 43.2%
2019 31.2% 97.1% 38.7% 31.8%
2018 32.1% 90.4% 36.1% 28.1%
2017 30.7% 84% 35.6% 31.1%
2016 33.3% 77.4% 36.4% 33.4%
2015 34.8% 63.2% 37.2% 34.2%
2014 27.3% 42.6% 37.6% 34.2%
2013 32% 42.3% 38.6% 34.6%
2012 31.1% 34.8% 39.7% 35.7%
2011 30.2% 31.6% 42.3% 34.7%
2010 31.1% 28.8% 42.9% 29.6%
2009 24.6% 20.5% 40.3% 24.3%
2008 22.7% 12.1% 38.4% 19%
2007 22.4% 15.7% 37% 16.3%
2006 23.1% 19.4% 37.8% 18.4%
2005 23.9% 23.2% 37.1% 20.8%
2004 25% 28.2% 36.1% 22.5%
2003 28.1% 31.1% 36.6% 24.7%
2002 30.6% 27.2% 36.7% 26.4%
2001 26.5% 25% 37.2% 28.2%
2000 22.2% 24.7% 38.2% 30%
1999 27.1% 24.7% 39.2% 32%
1998 25.7% 20% 40.1% 34.5%
1997 31% 14.8% 39.3% 34.6%
1996 22.7% 13.1% 39.8% 37.3%
1995 25.1% 13.6% 41.6% 43.5%
1994 26.1% 5.62% 42.7% 48.9%
1993 26.7% 5.95% 46.7% 54.6%
1992 29.4% 6.45% 52.4% 58.7%
1991 28.5% 6.71% 52.9% 58%
1990 32.4% 7.24% 49.5% 55.5%
1989 - - 47.8% 54.9%
1988 - - 46.1% 54.7%
1987 - - 46.1% 62.9%
1986 - - 46.9% 68.5%
1985 - - 46.2% 64.1%
1984 - - 40.7% 62.8%
1983 - - 41.4% 59.6%
1982 - - 39.9% 51.5%
1981 - - 39.1% 50.5%
1980 - - 38% 52.2%
1979 - - 38.4% 52%
1978 - - 36.6% 50%
1977 - - 30% 44.6%
1976 - - 31.6% 47.6%
1975 - - 30.1% 41.4%
1974 - - 27.3% 39.6%
1973 - - 27.1% 44%
1972 - - 26.4% 46%
1971 - - 26.8% 71.3%
1970 - - 24.8% 76.5%
1969 - - 25.9% 85.8%
1968 - - 26.2% 86.5%
1967 - - 26% 59.7%
1966 - - 25% 58.2%
1965 - - 24.9% 59.6%
1964 - - 19.4% 61.8%
1963 - - 19.4% 64.5%
1962 - - 21.6% 65%
1961 - - 21.1% 64.6%
1960 - - 25.3% 68.1%

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/new-zealand | CC BY

In 2025, Bahrain's government spending was $14.4B, accounting for 29.4% of its GDP, while New Zealand spent $110B, or 41.6% of GDP.

Debt-to-GDP ratio is 147.6% in Bahrain and 54.7% in New Zealand, ranking 6/185 and 91/185, respectively.

Government deficit by year

Deficit/surplus
Bahrain

New Zealand
1x
Year Deficit/surplus, % of GDP
Bahrain New Zealand
2025 -13% -3.86%
2024 -11% -3.21%
2023 -9.66% -3.22%
2022 -6.03% -3.96%
2021 -10.6% -3.35%
2020 -17.3% -4.21%
2019 -8.57% -2.44%
2018 -11.3% 1.31%
2017 -13.4% 1.38%
2016 -16.6% 0.98%
2015 -17.5% 0.37%
2014 -3.32% -0.33%
2013 -8.55% -1.28%
2012 -5.77% -2.18%
2011 -4.9% -4.94%
2010 -9.29% -5.49%
2009 -5.36% -1.8%
2008 4.08% 1.48%
2007 1.52% 3.6%
2006 2.24% 4.62%
2005 2.8% 5.13%
2004 0.24% 4.49%
2003 -1.7% 3.69%
2002 -3.27% 2.56%
2001 0.7% 1.29%
2000 7.33% 0.18%
1999 -4.85% -1.1%
1998 -5.49% -0.47%
1997 -6.39% 1.24%
1996 0.24% 2.58%
1995 -3.99% 3.7%
1994 -5.18% 2%
1993 -2.77% -1.51%
1992 -5.41% -6.25%
1991 -3.47% -6.12%
1990 -6.79% -2.72%
1989 - -2.16%
1988 - -1.88%
1987 - -3.43%
1986 - -5.33%
1985 - -6.97%
1984 - -8.68%
1983 - -6.64%
1982 - -6.26%
1981 - -6.02%
1980 - -4.9%
1979 - -6.55%
1978 - -3.41%
1977 - -1.09%
1976 - -2.07%
1975 - 0.11%
1974 - 0.03%
1973 - -0.07%
1972 - 0.12%
1971 - 0.09%
1970 - -0.05%
1969 - 0.17%
1968 - 0.03%
1967 - 0.02%
1966 - 0.09%
1965 - 0.26%
1964 - -0.08%
1963 - -0.26%
1962 - 0.02%
1961 - 0.03%
1960 - 0.05%
1959 - 0.03%
1958 - -0.02%
1957 - 0.32%
1956 - 1.33%
1955 - 0.73%
1954 - 0.22%
1953 - 0.43%
1952 - 1.73%
1951 - 1.17%
1950 - 0.78%
1949 - 0.53%
1948 - 0.36%
1947 - 1.07%
1946 - 0.31%
1945 - 0.32%
1944 - 0.59%
1943 - 1.24%
1942 - 0.56%
1941 - 0.64%
1940 - 0.13%
1939 - 0.34%
1938 - 0.38%
1937 - 0.23%
1936 - 0.17%
1935 - 1.19%
1934 - -0.55%
1933 - 0.02%
1932 - -1.77%
1931 - -1.12%
1930 - 0.09%
1929 - -0.37%
1928 - 0.12%
1927 - 0.4%
1926 - 0.72%
1925 - 0.78%
1924 - 1.2%
1923 - 0.95%
1922 - -0.2%
1921 - 3.55%
1920 - 1.51%
1919 - 2.9%
1918 - 4.35%
1917 - 3.89%
1916 - 1.46%
1915 - 0.06%
1914 - 0.45%
1913 - 0.79%
1912 - 0.89%
1911 - 1.24%
1910 - 0.36%
1909 - 0.31%
1908 - 1.26%
1907 - 1.13%
1906 - 0.97%
1905 - 1.41%
1904 - 1.42%
1903 - 0.55%
1902 - 0.63%
1901 - 1.11%
1900 - 1.59%
1899 - 1.15%
1898 - 1.38%
1897 - 0.86%
1896 - 0.65%
1895 - 0.32%
1894 - 0.76%
1893 - 1.14%
1892 - 0.09%
1891 - 0.46%
1890 - 0.05%
1889 - 0.59%
1888 - -1.64%
1887 - -1.63%
1886 - -0.53%
1885 - -0.47%
1884 - -0.1%
1883 - 0.38%
1882 - 0.18%
1881 - -2.33%
1880 - -2.39%
1879 - -0.55%
1878 - -0.85%
1877 - -2.53%
1876 - -5.28%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1876–1989, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/bahrain/new-zealand | 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 New Zealand's deficit of $10.2B, or 3.86% of GDP.

Over the past 36 years, Bahrain recorded a fiscal deficit in 28 of those years, while New Zealand ran a deficit in 19 years. On average, Bahrain posted an annual deficit equal to 5.61% of GDP, compared to deficit of 0.5% of GDP for New Zealand.

Inflation comparison by year

Inflation
Bahrain

New Zealand
1x
Year Consumer prices inflation
Bahrain New Zealand
2025 -0.14% 2.84%
2024 0.92% 2.92%
2023 0.07% 5.73%
2022 3.63% 7.17%
2021 -0.61% 3.94%
2020 -2.32% 1.71%
2019 1.01% 1.62%
2018 2.09% 1.6%
2017 1.39% 1.85%
2016 2.79% 0.65%
2015 1.85% 0.29%
2014 2.65% 1.23%
2013 3.3% 1.13%
2012 2.76% 1.06%
2011 -0.4% 4.03%
2010 1.96% 2.3%
2009 2.8% 2.12%
2008 3.53% 3.96%
2007 3.26% 2.38%
2006 2.01% 3.37%
2005 2.59% 3.04%
2004 2.35% 2.29%
2003 1.59% 1.75%
2002 -0.5% 2.68%
2001 -1.21% 2.63%
2000 -0.7% 2.62%
1999 -1.29% -0.11%
1998 -0.37% 1.27%
1997 2.43% 1.19%

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

GeoRank.org/economy/bahrain/new-zealand | CC BY

Over the past 29 years, Bahrain has recorded an average annual inflation rate of 1.29%, compared with 2.39% in New Zealand. In 2025, inflation was -0.14% in Bahrain and 2.84% in New Zealand.

Top exports between countries

Bahrain
Export category Export value
Metals $9.98M
Animal & marine products $306K
Machinery & equipment $236K
Wood & paper products $146K
Processed food, beverages & tobacco $132K
Chemicals & pharma $21K
Textiles & consumer goods $21K
Miscellaneous $8K
New Zealand
Export category Export value
Animal & marine products $50M
Raw agricultural goods $1.32M
Chemicals & pharma $1.31M
Machinery & equipment $1.1M
Processed food, beverages & tobacco $490K
Transport & tourism services $100K
Textiles & consumer goods $88K
Wood & paper products $71K
Metals $60K
Raw materials & minerals $45K

Balance of trade

Bahrain New Zealand
Current account balance
$2.28B
2024
-$9.56B
2025
Current account balance ranking
43/190
2024
174/190
2025
Current account balance, % of GDP
+4.83%
2024
-3.62%
2025
Goods imports
$20.7B
2024
$48.2B
2025
Goods exports
$24.3B
2024
$47.2B
2025
Service imports
$12.4B
2024
$20.3B
2025
Service exports
$17B
2024
$19.5B
2025
Imports of goods and services, % of GDP
70%
2024
26%
2024
Exports of goods and services, % of GDP
87.5%
2024
24.7%
2024

Economic freedom indices

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

Bahrain New Zealand
Economic freedom 65.7 77.8
Economic freedom ranking 63/197 13/197
Property rights 60.9 85.4
Government integrity 45.9 90
Judicial effectiveness 30 95.9
Tax burden 99.9 66.1
Government spending 75 48
Fiscal health 0 72.2
Business freedom 75.9 89.1
Labor freedom 55.5 68.6
Monetary freedom 88.8 77.4
Trade freedom 86.8 90.6
Investment freedom 90 70
Financial freedom 80 80

Economic freedom comparison by year

Bahrain
New Zealand
1x
Year Economic freedom index
Bahrain New Zealand
2026 65.7 77.8
2025 65.6 78.1
2024 63.4 77.8
2023 62.5 78.9
2022 62 80.6
2021 69.9 83.9
2020 66.3 84.1
2019 66.4 84.4
2018 67.7 84.2
2017 68.5 83.7
2016 74.3 81.6
2015 73.4 82.1
2014 75.1 81.2
2013 75.5 81.4
2012 75.2 82.1
2011 77.7 82.3
2010 76.3 82.1
2009 74.8 82
2008 72.2 80.7
2007 71.2 81.4
2006 71.6 82
2005 71.2 82.3
2004 75.1 81.5
2003 76.3 81.1
2002 75.6 80.7
2001 75.9 81.1
2000 75.7 80.9
1999 75.2 81.7
1998 75.6 79.2
1997 76.1 79
1996 76.4 78.1
1995 76.2 -

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

GeoRank.org/economy/bahrain/new-zealand | CC BY

The Economic Freedom Index for Bahrain is 65.7, ranking 63/197, compared to 77.8 for New Zealand, ranking 13/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Bahrain New Zealand
Services, % of GDP
54.3%
2025
68.2%
2023
Industry, % of GDP
41.2%
2025
19.4%
2023
Agriculture, forestry, and fishing, % of GDP
0.24%
2025
4.01%
2023
GNI, Atlas method
$46.1B
2025
$248B
2025
GNI per capita, PPP
$65,500
2025
$53,600
2025
Total reserves including gold
$5.27B
2025
$28.2B
2025
Total reserves ranking
101/177
2025
59/177
2025
Net foreign direct investment
-$2.43B
2024
-$3.58B
2025
Net inflows of foreign direct investment
$2.7B
2024
$1.76B
2024
Net outflows of foreign direct investment
$275M
2024
$882M
2024
Gross capital formation, % of GDP
28.4%
2024
23.1%
2024

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/new-zealand | 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 (1876–1989, 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.

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.