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Economy of Bangladesh vs Mexico compared: GDP & Debt

Updated on by Georank

Bangladesh has a GDP of $456B compared to $1.83T for Mexico, ranking 38/197 and 14/197 by economy size, respectively.

Bangladesh has $192B in government debt (42% of GDP), compared to $1.13T (61.8% of GDP) in Mexico.

Bangladesh vs Mexico GDP by year

Bangladesh
Mexico
1x
Year GDP, current $
Bangladesh Mexico
2025 $456,319,229,256 $1,832,641,364,776
2024 $450,119,432,069 $1,830,489,311,089
2023 $437,415,333,018 $1,794,410,347,718
2022 $460,131,689,083 $1,466,934,724,243
2021 $416,271,647,911 $1,316,569,466,834
2020 $373,979,442,362 $1,121,064,767,169
2019 $351,231,654,604 $1,304,106,204,006
2018 $321,362,752,442 $1,256,300,182,984
2017 $293,732,446,625 $1,190,721,475,853
2016 $265,224,515,675 $1,112,233,497,453
2015 $195,146,608,978 $1,213,294,467,654
2014 $172,886,611,654 $1,364,507,717,689
2013 $149,998,957,434 $1,327,436,290,439
2012 $133,310,747,603 $1,255,110,424,742
2011 $128,607,482,310 $1,229,013,703,417
2010 $115,275,540,051 $1,105,424,238,652
2009 $102,475,158,191 $943,437,414,951
2008 $91,636,997,371 $1,161,553,459,985
2007 $79,611,644,975 $1,102,355,554,880
2006 $71,795,736,172 $1,020,265,057,882
2005 $69,476,001,239 $917,571,853,437
2004 $65,108,544,250 $819,459,227,375
2003 $60,158,929,188 $765,549,967,889
2002 $54,724,081,491 $810,666,116,402
2001 $53,991,289,844 $796,064,590,549
2000 $53,369,787,319 $742,061,329,749
1999 $51,270,569,884 $631,249,359,702
1998 $49,984,559,471 $557,461,102,631
1997 $48,244,309,133 $523,449,530,464
1996 $46,438,484,108 $432,157,945,024
1995 $37,939,748,769 $380,157,469,867
1994 $33,768,660,883 $553,618,247,901
1993 $33,166,519,418 $530,160,763,663
1992 $31,708,874,594 $363,157,832,924
1991 $30,957,483,950 $313,139,656,146
1990 $31,598,340,778 $261,253,675,693
1989 $28,781,715,189 $221,403,098,267
1988 $26,579,005,558 $181,611,150,497
1987 $24,298,032,258 $147,542,558,209
1986 $21,774,033,333 $134,556,034,673
1985 $22,278,423,077 $195,241,069,482
1984 $18,920,840,000 $184,230,754,105
1983 $17,609,048,822 $156,167,000,433
1982 $18,525,399,202 $184,602,611,610
1981 $20,249,694,002 $263,797,827,860
1980 $18,138,049,096 $205,577,055,466
1979 $15,565,480,322 $134,531,900,899
1978 $13,281,767,143 $102,648,570,299
1977 $9,651,149,302 $81,912,018,784
1976 $10,117,113,333 $88,875,923,765
1975 $19,448,348,073 $88,000,000,000
1974 $12,512,460,520 $72,000,000,000
1973 $8,086,725,729 $55,280,000,000
1972 $6,288,245,867 $45,200,000,000
1971 $8,751,843,188 $39,200,000,000
1970 $8,992,722,167 $35,520,000,000
1969 $8,471,006,438 $32,480,000,000
1968 $7,483,685,771 $29,360,000,000
1967 $7,253,575,688 $26,560,000,000
1966 $6,439,687,854 $24,320,000,000
1965 $5,906,636,792 $21,840,000,000
1964 $5,386,054,833 $20,080,000,000
1963 $5,319,458,563 $16,960,000,000
1962 $5,081,413,542 $15,200,000,000
1961 $4,817,580,375 $14,160,000,000
1960 $4,274,894,083 $13,040,000,000

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

GeoRank.org/economy/bangladesh/mexico | CC BY

GDP per capita in Bangladesh vs Mexico by year

Bangladesh
GDP per capita

GDP per capita, PPP
Mexico
GDP per capita

GDP per capita, PPP
1x
Year Current $
Bangladesh Mexico
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $2,597 - $13,889 -
2024 $2,593 $9,647 $13,988 $26,185
2023 $2,551 $9,148 $13,831 $25,243
2022 $2,716 $8,451 $11,406 $23,135
2021 $2,483 $7,441 $10,314 $20,783
2020 $2,249 $6,641 $8,841 $19,354
2019 $2,130 $6,047 $10,370 $20,964
2018 $1,965 $5,490 $10,085 $20,921
2017 $1,811 $4,883 $9,649 $20,489
2016 $1,649 $4,579 $9,098 $20,105
2015 $1,224 $4,212 $10,021 $19,071
2014 $1,094 $3,973 $11,391 $18,821
2013 $958 $3,691 $11,217 $18,170
2012 $860 $3,434 $10,744 $18,005
2011 $837 $3,051 $10,664 $17,267
2010 $757 $2,834 $9,729 $15,909
2009 $679 $2,675 $8,424 $15,191
2008 $613 $2,555 $10,524 $15,681
2007 $538 $2,388 $10,134 $15,032
2006 $490 $2,195 $9,513 $14,540
2005 $480 $2,020 $8,672 $13,260
2004 $456 $1,862 $7,850 $12,658
2003 $427 $1,746 $7,434 $12,066
2002 $394 $1,659 $7,983 $11,762
2001 $395 $1,598 $7,953 $11,739
2000 $397 $1,512 $7,524 $11,705
1999 $388 $1,430 $6,500 $11,031
1998 $386 $1,373 $5,833 $10,756
1997 $379 $1,315 $5,567 $10,182
1996 $372 $1,261 $4,674 $9,496
1995 $309 $1,206 $4,184 $8,933
1994 $280.6 $1,145 $6,202 $9,466
1993 $280.8 $1,099 $6,048 $9,041
1992 $273.5 $1,045 $4,221 $9,470
1991 $272.1 $987 $3,709 $9,079
1990 $283.1 $941 $3,154 $8,578
1989 $263 - $2,725 -
1988 $247.9 - $2,279 -
1987 $231.5 - $1,888 -
1986 $212.1 - $1,757 -
1985 $222.2 - $2,602 -
1984 $193.4 - $2,506 -
1983 $184.7 - $2,170 -
1982 $199.6 - $2,621 -
1981 $224.2 - $3,829 -
1980 $206.1 - $3,055 -
1979 $181.1 - $2,049 -
1978 $158.3 - $1,604 -
1977 $117.9 - $1,315 -
1976 $126.7 - $1,465 -
1975 $249.8 - $1,492 -
1974 $165 - $1,256 -
1973 $109.7 - $993 -
1972 $87.8 - $837 -
1971 $124.5 - $748 -
1970 $130.2 - $699 -
1969 $125.9 - $660 -
1968 $114.4 - $616 -
1967 $114.2 - $576 -
1966 $104.4 - $545 -
1965 $98.6 - $506 -
1964 $92.6 - $481 -
1963 $94.1 - $420 -
1962 $92.6 - $388 -
1961 $90.4 - $374 -
1960 $82.5 - $355 -

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

GeoRank.org/economy/bangladesh/mexico | CC BY

Bangladesh's GDP per capita is $2,597, ranking 151/197, compared to $13,889 in Mexico, ranking 76/197. Adjusted for purchasing power (GDP per capita PPP), Bangladesh ranks 135th at $9,647, while Mexico ranks 80th at $26,185.

Economic indicators

Bangladesh Mexico
Gross domestic product
$456B
2025
$1.83T
2025
GDP rank
38/197
2025
14/197
2025
GDP growth
3.49%
2024-2025
0.56%
2024-2025
GDP per capita
$2,597
2025
$13,889
2025
GDP per capita rank
151/197
2025
76/197
2025
GDP per capita, PPP
$9,647
2024
$26,185
2024
GDP per capita PPP rank
135/197
2024
80/197
2024
Government debt
$192B
2025
$1.13T
2025
Debt-to-GDP ratio
42%
2025
61.8%
2025
Government debt per person
$1,092
2025
$8,577
2025
Government debt per person rank
143/185
2025
66/185
2025
Average annual personal income after taxes
$2,829
2026
$10,482
2026
Market capitalization of domestic companies
$26.2B
2025
$560B
2025
Number of millionaires n/a
333,000
2026
Number of billionaires n/a
22
2026
Income share by richest 10%
25.5%
2022
33.4%
2024
Income share by poorest 10%
3.7%
2022
2.1%
2024
Government expenditure, % of GDP
10.9%
2025
29.8%
2025
Consumer prices inflation
10%
2024-2025
3.81%
2024-2025
Central bank interest rate
10%
2024
6.5%
2026
Unemployment rate
3.64%
2024
2.54%
2025
Population
178936470
133551566

Spending and national debt comparison by year

Bangladesh
Spending

Debt
Mexico
Spending

Debt
1x
Year % of GDP
Bangladesh Mexico
Government spending Government debt Government spending Government debt
2025 10.9% 42% 29.8% 61.8%
2024 12% 41% 30.8% 59.1%
2023 12.6% 39.7% 28.6% 52.8%
2022 13% 37.9% 28.5% 53.8%
2021 12.9% 35.6% 26.7% 56.7%
2020 13.3% 34.5% 27.8% 58.5%
2019 13.6% 32% 25.3% 51.9%
2018 13% 29.6% 25% 52.2%
2017 12.2% 28.3% 25% 52.5%
2016 11.6% 27.7% 26.5% 55%
2015 11.5% 28.2% 26.6% 51%
2014 11.7% 28.7% 26.9% 47.1%
2013 12.1% 28.3% 26.7% 44.1%
2012 11.7% 29.1% 27% 40.8%
2011 11.5% 29.4% 26.6% 41.2%
2010 10.6% 29.6% 26.5% 40.2%
2009 10.6% 33% 26.5% 41.7%
2008 11.5% 33.9% 26.5% 40.6%
2007 9.63% 35% 22.5% 35.5%
2006 10.1% 35.3% 21.6% 35.8%
2005 10.3% 35.6% 21.2% 36.8%
2004 9.88% 36.6% 20.5% 38.9%
2003 10.2% 37% 21.5% 42.1%
2002 10.4% 38.9% 19.8% 39.9%
2001 10.7% 37.1% 19.5% 37.3%
2000 9.76% 31.2% 19.4% 38.5%
1999 8.66% 32.7% 20.1% 41.7%
1998 9.82% 31.1% 19.5% 39.7%
1997 9.89% 29.1% 20.7% 39.1%
1996 9.79% 31% 20.8% 42.5%
1995 10.5% 32.9% 18.9% 30.7%
1994 10% 35.5% 18.9% 26.8%
1993 9.74% 34.1% 18.2% 19.2%
1992 8.8% 33.1% 19% 21.5%
1991 8.86% 31.8% 20.1% 29.2%
1990 9.14% 31.5% 22.9% 35.7%
1989 - - 19.2% 36%
1988 - - 23.6% 36.5%
1987 - - 26.7% 52.7%
1986 - - 25.1% 47.8%
1985 - - 21.4% 30.4%
1984 - - 19.8% 25.2%
1983 - - 21.6% 25.3%
1982 - - 24.7% 29.8%
1981 - - 20.1% 41.7%
1980 - - 17.5% 31.4%
1979 - - 16.5% 35.8%
1978 - - 15.7% 39%
1977 - - 15.5% 41.5%
1976 - - 15.5% 31.3%
1975 - - 14.7% 24.4%
1974 - - 13.8% 21.7%
1973 - - 12.7% 20%
1972 - - 11.9% 17.9%
1971 - - 10.6% 17%
1970 - - 10.9% 17.1%
1969 - - 11.8% 10.7%
1968 - - 10.9% 7.85%
1967 - - 10.4% 8.22%
1966 - - 11.6% 5.14%
1965 - - 10.7% 9.99%
1964 - - 9.21% 6.22%
1963 - - 8.51% 4.13%
1962 - - 8.26% 4.2%
1961 - - 8.01% 4.38%
1960 - - 9.5% 4.58%

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–2002, retrieved 2026-07-08).

GeoRank.org/economy/bangladesh/mexico | CC BY

In 2025, Bangladesh's government spending was $49.6B, accounting for 10.9% of its GDP, while Mexico spent $547B, or 29.8% of GDP.

Debt-to-GDP ratio is 42% in Bangladesh and 61.8% in Mexico, ranking 124/185 and 73/185, respectively.

Government deficit by year

Deficit/surplus
Bangladesh

Mexico
1x
Year Deficit/surplus, % of GDP
Bangladesh Mexico
2025 -2.93% -4.86%
2024 -3.7% -5.78%
2023 -4.39% -4.3%
2022 -4.53% -4.32%
2021 -3.56% -3.75%
2020 -4.84% -4.29%
2019 -5.41% -2.27%
2018 -4.07% -2.14%
2017 -4.17% -1.03%
2016 -3.16% -2.68%
2015 -3.29% -3.86%
2014 -2.62% -4.37%
2013 -2.86% -3.56%
2012 -2.56% -3.57%
2011 -2.96% -3.2%
2010 -2.23% -3.8%
2009 -2.68% -3.94%
2008 -3.36% -0.68%
2007 -1.86% -1.46%
2006 -2.15% -1.23%
2005 -2.4% -1.43%
2004 -2.21% -1.35%
2003 -1.96% -2.24%
2002 -2.3% -2.18%
2001 -3.44% -2.57%
2000 -2.5% -2.69%
1999 -1.35% -4.49%
1998 -2.2% -4.49%
1997 -1.94% -3.48%
1996 -2.01% -3.66%
1995 -0.38% -2.28%
1994 0.03% -2.25%
1993 0.43% -1.51%
1992 0.36% 2.26%
1991 0.44% 1.49%
1990 -0.15% -3.11%
1989 - -4.75%
1988 - -8.76%
1987 - -11.6%
1986 - -11.2%
1985 - -7.2%
1984 - -5.79%
1983 - -6.03%
1982 - -11.4%
1981 - -4.9%
1980 - -1.75%
1979 - -2.15%
1978 - -1.88%
1977 - -2.43%
1976 - -3.14%
1975 - -2.64%
1974 - -3.33%
1973 - -2.75%
1972 - -2.3%
1971 - -1.43%
1970 - -1.71%
1969 - -2.74%
1968 - -2.06%
1967 - -2.12%
1966 - -3.2%
1965 - -2.51%
1964 - -1.44%
1963 - -0.92%
1962 - -0.79%
1961 - -0.88%
1960 - -1.36%
1959 - -0.73%
1958 - 0.24%
1957 - -0.03%
1956 - 0.52%
1955 - 0.6%
1954 - -0.94%
1953 - -0.58%
1952 - 0.42%
1951 - -0.26%
1950 - -0.2%
1949 - 0.44%
1948 - -1.55%
1947 - -0.93%
1946 - 0.66%
1945 - -1.11%
1944 - -1.12%
1943 - 0.05%
1942 - -0.93%
1941 - -0.26%
1940 - -0.4%
1939 - -0.06%
1938 - -0.91%
1937 - -0.41%
1936 - -0.39%
1935 - 0.26%
1934 - 0.72%
1933 - -0.58%
1932 - 0%
1931 - 0.71%
1930 - 0.21%
1929 - 0.95%
1928 - 0.24%
1927 - -0.3%
1926 - -0.29%
1925 - 0.46%
1924 - 1.34%
1923 - 1.02%
1922 - 1.13%
1921 - 0.64%
1920 - 0.91%
1919 - 0.41%
1918 - -0.19%
1917 - 0.63%
1916 - -
1915 - -
1914 - -
1913 - 0.28%
1912 - -0.79%
1911 - -0.31%
1910 - 0.1%
1909 - 0.15%
1908 - -0.08%
1907 - 0.43%
1906 - 0.72%
1905 - 0.35%
1904 - 1.09%
1903 - 3.82%
1902 - 0.42%
1901 - 0.62%
1900 - 0.76%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1900–1989, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/bangladesh/mexico | CC BY

In 2025, Bangladesh's government deficit, the difference between spending and revenue, was $13.4B, equivalent to 2.93% of GDP. This compares to Mexico's deficit of $89B, or 4.86% of GDP.

Over the past 36 years, Bangladesh recorded a fiscal deficit in 32 of those years, while Mexico ran a deficit in 34 years. On average, Bangladesh posted an annual deficit equal to 2.47% of GDP, compared to deficit of 2.75% of GDP for Mexico.

Inflation comparison by year

Inflation
Bangladesh

Mexico
1x
Year Consumer prices inflation
Bangladesh Mexico
2025 10% 3.81%
2024 9.7% 4.72%
2023 9% 5.53%
2022 6.1% 7.9%
2021 5.6% 5.69%
2020 5.6% 3.4%
2019 5.5% 3.64%
2018 5.8% 4.9%
2017 5.4% 6.04%
2016 5.9% 2.82%
2015 6.4% 2.72%
2014 7.3% 4.02%
2013 6.8% 3.81%
2012 8.9% 4.11%
2011 8.8% 3.41%
2010 7.3% 4.16%
2009 6.7% 5.3%
2008 9.9% 5.12%
2007 7.2% 3.97%
2006 7.2% 3.63%
2005 6.5% 3.99%
2004 8.1% 4.69%
2003 3.9% 4.55%
2002 2.4% 5.03%
2001 1.8% 6.37%
2000 3.6% 9.49%
1999 8.9% 16.6%
1998 6.7% 15.9%
1997 2.7% 20.6%

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/bangladesh/mexico | CC BY

Over the past 29 years, Bangladesh has recorded an average annual inflation rate of 6.54%, compared with 6.07% in Mexico. In 2025, inflation was 10% in Bangladesh and 3.81% in Mexico.

Top exports between countries

Bangladesh
Export category Export value
Textiles & consumer goods $191M
Animal & marine products $1.21M
Wood & paper products $118K
Chemicals & pharma $83K
Machinery & equipment $49K
Processed food, beverages & tobacco $11K
Precious metals & jewellery $9K
Miscellaneous $3K
Mexico
Export category Export value
Textiles & consumer goods $7.8M
Chemicals & pharma $2.62M
Machinery & equipment $1.23M
Miscellaneous $1K

Balance of trade

Bangladesh Mexico
Current account balance
-$239M
2025
-$8.2B
2025
Current account balance ranking
93/190
2025
171/190
2025
Current account balance, % of GDP
-0.05%
2025
-0.45%
2025
Goods imports
$66B
2025
$665B
2025
Goods exports
$43.8B
2025
$666B
2025
Service imports
$14.7B
2025
$75.4B
2025
Service exports
$8.42B
2025
$64B
2025
Imports of goods and services, % of GDP
16.8%
2025
40.3%
2025
Exports of goods and services, % of GDP
11.1%
2025
39.6%
2025

Economic freedom indices

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

Bangladesh Mexico
Economic freedom 54.8 59.8
Economic freedom ranking 131/197 102/197
Property rights 32.1 37.6
Government integrity 22.7 28.8
Judicial effectiveness 36.7 40.4
Tax burden 79.9 75.4
Government spending 95.3 74.6
Fiscal health 68.4 56.7
Business freedom 52.7 67
Labor freedom 50.5 57.3
Monetary freedom 65.8 70.6
Trade freedom 63 74.2
Investment freedom 50 75
Financial freedom 40 60

Economic freedom comparison by year

Bangladesh
Mexico
1x
Year Economic freedom index
Bangladesh Mexico
2026 54.8 59.8
2025 54.7 61.3
2024 54.4 62
2023 54.4 63.2
2022 52.7 63.7
2021 56.5 65.5
2020 56.4 66
2019 55.6 64.7
2018 55.1 64.8
2017 55 63.6
2016 53.3 65.2
2015 53.9 66.4
2014 54.1 66.8
2013 52.6 67
2012 53.2 65.3
2011 53 67.8
2010 51.1 68.3
2009 47.5 65.8
2008 44.2 66.2
2007 46.7 66
2006 52.9 64.7
2005 47.5 65.2
2004 50 66
2003 49.3 65.3
2002 51.9 63
2001 51.2 60.6
2000 48.9 59.3
1999 50 58.5
1998 52 57.9
1997 49.9 57.1
1996 51.1 61.2
1995 40.9 63.1

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

GeoRank.org/economy/bangladesh/mexico | CC BY

The Economic Freedom Index for Bangladesh is 54.8, ranking 131/197, compared to 59.8 for Mexico, ranking 102/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Bangladesh Mexico
Services, % of GDP
52.1%
2025
58.9%
2025
Industry, % of GDP
34%
2025
30.6%
2025
Agriculture, forestry, and fishing, % of GDP
11.4%
2025
3.88%
2025
GNI, Atlas method
$499B
2025
$1.81T
2025
GNI per capita, PPP
$10,710
2025
$25,070
2025
Total reserves including gold
$28.6B
2025
$256B
2025
Total reserves ranking
58/177
2025
17/177
2025
Net foreign direct investment
-$1.84B
2025
-$31.8B
2025
Net inflows of foreign direct investment
$1.28B
2024
$45.5B
2024
Net outflows of foreign direct investment
$34.1M
2024
$13B
2024
Servicing debt to the IMF, % of GNI
1.83%
2024
3.77%
2024
Poverty at national poverty lines
18.7%
2022
29.6%
2024
Gross capital formation, % of GDP
28.5%
2025
22.6%
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/bangladesh/mexico | 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 (1900–2002, 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)
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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.