Botswana has a GDP of $19.9B compared to $27.8B for Malta, ranking 135/197 and 118/197 by economy size, respectively.
Botswana has $7.7B in government debt (38.6% of GDP), compared to $13B (46.8% of GDP) in Malta.
Botswana vs Malta GDP by year
| Year | GDP, current $ | |
|---|---|---|
Botswana
|
Malta
|
|
| 2025 | $19,928,479,839 | $27,771,821,561 |
| 2024 | $19,286,251,068 | $25,042,712,191 |
| 2023 | $19,413,614,555 | $22,625,329,776 |
| 2022 | $20,321,150,599 | $18,938,869,147 |
| 2021 | $18,750,182,236 | $19,730,119,031 |
| 2020 | $14,960,251,608 | $16,404,655,808 |
| 2019 | $16,725,908,149 | $16,337,788,881 |
| 2018 | $17,031,943,186 | $16,153,785,817 |
| 2017 | $16,105,155,857 | $14,161,374,599 |
| 2016 | $15,082,637,184 | $12,025,777,078 |
| 2015 | $13,530,748,845 | $11,340,789,706 |
| 2014 | $15,470,088,501 | $11,888,029,752 |
| 2013 | $14,271,738,933 | $10,796,780,874 |
| 2012 | $13,907,464,500 | $9,609,530,619 |
| 2011 | $15,110,643,612 | $9,789,363,086 |
| 2010 | $12,637,273,429 | $9,097,044,301 |
| 2009 | $10,118,459,242 | $8,769,897,418 |
| 2008 | $10,730,829,116 | $9,172,399,573 |
| 2007 | $10,567,270,656 | $7,908,412,374 |
| 2006 | $9,919,158,482 | $6,749,838,862 |
| 2005 | $9,918,907,108 | $6,393,234,965 |
| 2004 | $8,957,467,707 | $6,104,141,501 |
| 2003 | $7,511,582,173 | $5,418,315,225 |
| 2002 | $5,438,863,983 | $4,455,127,398 |
| 2001 | $5,489,608,300 | $4,070,867,153 |
| 2000 | $5,788,329,609 | $4,036,809,767 |
| 1999 | $5,484,263,347 | $4,111,857,836 |
| 1998 | $4,790,481,509 | $4,010,111,652 |
| 1997 | $5,020,265,627 | $3,787,023,655 |
| 1996 | $4,847,757,218 | $3,822,547,151 |
| 1995 | $4,730,599,122 | $3,709,396,089 |
| 1994 | $4,259,259,604 | $2,998,505,428 |
| 1993 | $4,160,129,175 | $2,709,193,538 |
| 1992 | $4,146,464,587 | $3,021,942,759 |
| 1991 | $3,942,876,703 | $2,750,216,747 |
| 1990 | $3,790,636,324 | $2,547,328,748 |
| 1989 | $3,083,822,112 | $2,118,655,677 |
| 1988 | $2,644,554,159 | $2,019,503,068 |
| 1987 | $1,965,226,890 | $1,751,293,461 |
| 1986 | $1,392,602,164 | $1,435,038,441 |
| 1985 | $1,114,783,343 | $1,117,797,439 |
| 1984 | $1,240,822,167 | $1,101,807,023 |
| 1983 | $1,172,230,397 | $1,165,729,707 |
| 1982 | $1,014,945,696 | $1,234,474,404 |
| 1981 | $1,073,812,830 | $1,243,509,394 |
| 1980 | $1,060,889,704 | $1,250,198,601 |
| 1979 | $819,870,259 | $1,001,288,847 |
| 1978 | $590,407,374 | $793,673,402 |
| 1977 | $451,624,780 | $625,563,171 |
| 1976 | $372,025,093 | $527,936,989 |
| 1975 | $355,168,572 | $474,618,321 |
| 1974 | $306,044,208 | $376,081,124 |
| 1973 | $244,124,164 | $345,616,106 |
| 1972 | $164,460,915 | $295,106,628 |
| 1971 | $127,448,614 | $264,578,485 |
| 1970 | $96,243,234 | $250,728,796 |
| 1969 | $77,361,547 | - |
| 1968 | $66,248,441 | - |
| 1967 | $58,642,354 | - |
| 1966 | $51,465,655 | - |
| 1965 | $45,788,696 | - |
| 1964 | $41,616,348 | - |
| 1963 | $38,091,843 | - |
| 1962 | $35,644,957 | - |
| 1961 | $32,902,613 | - |
| 1960 | $30,411,414 | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/botswana/malta | CC BY 
GDP per capita in Botswana vs Malta by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Botswana
|
Malta
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2025 | $7,778 | - | $47,907 | - |
| 2024 | $7,650 | $20,538 | $44,024 | $69,864 |
| 2023 | $7,827 | $21,012 | $40,933 | $67,057 |
| 2022 | $8,329 | $19,977 | $35,659 | $60,589 |
| 2021 | $7,808 | $17,961 | $38,078 | $56,852 |
| 2020 | $6,323 | $15,292 | $31,823 | $49,972 |
| 2019 | $7,172 | $15,960 | $32,422 | $51,393 |
| 2018 | $7,408 | $15,786 | $33,382 | $48,178 |
| 2017 | $7,105 | $15,701 | $30,317 | $45,764 |
| 2016 | $6,749 | $16,228 | $26,459 | $41,000 |
| 2015 | $6,141 | $14,144 | $25,530 | $38,369 |
| 2014 | $7,122 | $15,003 | $27,425 | $35,206 |
| 2013 | $6,667 | $13,621 | $25,416 | $33,138 |
| 2012 | $6,596 | $12,737 | $22,878 | $30,716 |
| 2011 | $7,287 | $13,635 | $23,517 | $29,426 |
| 2010 | $6,216 | $12,753 | $21,947 | $28,909 |
| 2009 | $5,083 | $11,686 | $21,262 | $26,782 |
| 2008 | $5,503 | $13,810 | $22,406 | $26,654 |
| 2007 | $5,529 | $13,389 | $19,444 | $25,012 |
| 2006 | $5,292 | $12,563 | $16,654 | $23,219 |
| 2005 | $5,391 | $11,458 | $15,831 | $22,227 |
| 2004 | $4,957 | $10,818 | $15,212 | $21,566 |
| 2003 | $4,230 | $10,439 | $13,594 | $20,813 |
| 2002 | $3,117 | $9,958 | $11,251 | $19,532 |
| 2001 | $3,206 | $9,420 | $10,358 | $18,435 |
| 2000 | $3,451 | $9,380 | $10,348 | $18,214 |
| 1999 | $3,340 | $9,188 | $10,609 | $16,898 |
| 1998 | $2,981 | $8,441 | $10,408 | $16,219 |
| 1997 | $3,194 | $8,497 | $9,893 | $15,465 |
| 1996 | $3,156 | $7,890 | $10,062 | $14,661 |
| 1995 | $3,156 | $7,503 | $9,828 | $13,950 |
| 1994 | $2,917 | $7,049 | $8,000 | $12,938 |
| 1993 | $2,929 | $6,847 | $7,296 | $12,103 |
| 1992 | $3,005 | $6,753 | $8,220 | $11,429 |
| 1991 | $2,939 | $6,598 | $7,559 | $10,784 |
| 1990 | $2,903 | $6,104 | $7,192 | $10,086 |
| 1989 | $2,428 | - | $6,041 | - |
| 1988 | $2,141 | - | $5,814 | - |
| 1987 | $1,639 | - | $5,084 | - |
| 1986 | $1,200 | - | $4,195 | - |
| 1985 | $994 | - | $3,322 | - |
| 1984 | $1,145 | - | $3,333 | - |
| 1983 | $1,121 | - | $3,527 | - |
| 1982 | $1,006 | - | $3,788 | - |
| 1981 | $1,107 | - | $3,898 | - |
| 1980 | $1,132 | - | $3,948 | - |
| 1979 | $909 | - | $3,196 | - |
| 1978 | $695 | - | $2,559 | - |
| 1977 | $565 | - | $2,038 | - |
| 1976 | $490 | - | $1,727 | - |
| 1975 | $493 | - | $1,560 | - |
| 1974 | $446 | - | $1,245 | - |
| 1973 | $374 | - | $1,144 | - |
| 1972 | $264.2 | - | $976 | - |
| 1971 | $212.2 | - | $874 | - |
| 1970 | $163 | - | $828 | - |
| 1969 | $131.8 | - | - | - |
| 1968 | $113.4 | - | - | - |
| 1967 | $100.9 | - | - | - |
| 1966 | $89.1 | - | - | - |
| 1965 | $79.7 | - | - | - |
| 1964 | $73.5 | - | - | - |
| 1963 | $68.9 | - | - | - |
| 1962 | $66 | - | - | - |
| 1961 | $62.3 | - | - | - |
| 1960 | $58.9 | - | - | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/botswana/malta | CC BY
Botswana's GDP per capita is $7,778, ranking 100/197, compared to $47,907 in Malta, ranking 28/197. Adjusted for purchasing power (GDP per capita PPP), Botswana ranks 95th at $20,538, while Malta ranks 25th at $69,864.
Economic indicators
|
Botswana
|
Malta
|
|
|---|---|---|
| Gross domestic product |
$19.9B
2025 |
$27.8B
2025 |
| GDP rank |
135/197
2025 |
118/197
2025 |
| GDP growth |
-0.73%
2024-2025 |
3.96%
2024-2025 |
| GDP per capita |
$7,778
2025 |
$47,907
2025 |
| GDP per capita rank |
100/197
2025 |
28/197
2025 |
| GDP per capita, PPP |
$20,538
2024 |
$69,864
2024 |
| GDP per capita PPP rank |
95/197
2024 |
25/197
2024 |
| Government debt |
$7.7B
2025 |
$13B
2025 |
| Debt-to-GDP ratio |
38.6%
2025 |
46.8%
2025 |
| Government debt per person |
$3,005
2025 |
$22,407
2025 |
| Government debt per person rank |
106/185
2025 |
30/185
2025 |
| Average annual personal income after taxes |
$5,441
2026 |
$22,914
2026 |
| Market capitalization of domestic companies |
$4.28B
2025 |
$5.35B
2025 |
| Income share by richest 10% |
42.9%
2015 |
24.7%
2023 |
| Income share by poorest 10% |
1.4%
2015 |
2.8%
2023 |
| Government expenditure, % of GDP |
35%
2025 |
37%
2025 |
| Consumer prices inflation |
2.66%
2024-2025 |
2.36%
2024-2025 |
| Central bank interest rate |
5.5%
2026 |
n/a |
| Unemployment rate |
24.4%
2024 |
3.1%
2025 |
| Population |
2624853
|
586345
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Botswana
|
Malta
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2025 | 35% | 38.6% | 37% | 46.8% |
| 2024 | 33.7% | 33.2% | 37.4% | 46% |
| 2023 | 32.4% | 22.5% | 35.8% | 46.8% |
| 2022 | 29.1% | 21% | 38.4% | 50.1% |
| 2021 | 31.4% | 22.3% | 39.5% | 49.6% |
| 2020 | 36.5% | 23.5% | 42.1% | 48.6% |
| 2019 | 36.9% | 21.5% | 34.9% | 39.2% |
| 2018 | 35.6% | 19.6% | 34.5% | 41.4% |
| 2017 | 34.7% | 19.6% | 32.7% | 45.6% |
| 2016 | 34.1% | 22.3% | 35.5% | 53.1% |
| 2015 | 37.8% | 24.5% | 37.8% | 55% |
| 2014 | 36.5% | 23.9% | 39.6% | 60.7% |
| 2013 | 33.5% | 23.8% | 40.1% | 64.9% |
| 2012 | 37.1% | 26.4% | 41.7% | 65.6% |
| 2011 | 37.2% | 27.9% | 41.5% | 68.9% |
| 2010 | 42.6% | 26.5% | 40.1% | 65% |
| 2009 | 52.1% | 22.4% | 41.1% | 66% |
| 2008 | 48.1% | 7.79% | 42.1% | 61.5% |
| 2007 | 37.1% | 5.93% | 41.2% | 62% |
| 2006 | 33.1% | 6.14% | 42.5% | 64.5% |
| 2005 | 33.8% | 7.46% | 42.5% | 70.2% |
| 2004 | 39.8% | 10.7% | 42% | 70.4% |
| 2003 | 42.7% | 7.08% | 45.6% | 68.6% |
| 2002 | 45.1% | 8.37% | 43.6% | 65.1% |
| 2001 | 42.1% | 7.48% | 44.4% | 70% |
| 2000 | 38.8% | 8.16% | 42.9% | 64.4% |
| 1999 | 40.1% | 9.31% | - | 69.8% |
| 1998 | 41.8% | 11.3% | - | 66.4% |
| 1997 | 39% | - | - | 60.8% |
| 1996 | 36.1% | - | - | 51.5% |
| 1995 | 36.1% | - | - | 45.3% |
| 1994 | 37.6% | - | - | - |
| 1993 | 42% | - | - | - |
| 1992 | 42.3% | - | - | - |
| 1991 | 41.1% | - | - | - |
| 1990 | 38.9% | - | - | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).
GeoRank.org/economy/botswana/malta | CC BY
In 2025, Botswana's government spending was $6.98B, accounting for 35% of its GDP, while Malta spent $10.3B, or 37% of GDP.
Debt-to-GDP ratio is 38.6% in Botswana and 46.8% in Malta, ranking 137/185 and 113/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Botswana
|
Malta
|
|
| 2025 | -7.42% | -3.1% |
| 2024 | -7.26% | -3.51% |
| 2023 | -4.16% | -4.43% |
| 2022 | 0.04% | -5.33% |
| 2021 | -2.33% | -6.96% |
| 2020 | -10.9% | -8.71% |
| 2019 | -8.53% | 0.72% |
| 2018 | -5.03% | 1.86% |
| 2017 | -1.14% | 3.4% |
| 2016 | 0.71% | 1.1% |
| 2015 | -4.82% | -0.84% |
| 2014 | 3.9% | -1.49% |
| 2013 | 5.84% | -2.19% |
| 2012 | 0.89% | -3.31% |
| 2011 | -0.12% | -2.99% |
| 2010 | -7.95% | -2.22% |
| 2009 | -13.8% | -3.11% |
| 2008 | -7.61% | -4.06% |
| 2007 | 5.73% | -2.05% |
| 2006 | 13.3% | -2.46% |
| 2005 | 10.3% | -2.83% |
| 2004 | 1.35% | -4.28% |
| 2003 | -0.18% | -9.04% |
| 2002 | -3.94% | -5.62% |
| 2001 | -2.91% | -6.5% |
| 2000 | 8.73% | -5.83% |
| 1999 | 5.95% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1999–2025, retrieved 2026-07-08).
GeoRank.org/economy/botswana/malta | CC BY
In 2025, Botswana's government deficit, the difference between spending and revenue, was $1.48B, equivalent to 7.42% of GDP. This compares to Malta's deficit of $861M, or 3.1% of GDP.
Over the past 26 years, Botswana recorded a fiscal deficit in 16 of those years, while Malta ran a deficit in 22 years. On average, Botswana posted an annual deficit equal to 1.43% of GDP, compared to deficit of 3.22% of GDP for Malta.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Botswana
|
Malta
|
|
| 2025 | 2.66% | 2.36% |
| 2024 | 2.82% | 1.65% |
| 2023 | 5.07% | 5.09% |
| 2022 | 11.7% | 6.15% |
| 2021 | 7.24% | 1.5% |
| 2020 | 1.89% | 0.64% |
| 2019 | 2.77% | 1.64% |
| 2018 | 3.24% | 1.16% |
| 2017 | 3.31% | 1.36% |
| 2016 | 2.81% | 0.64% |
| 2015 | 3.06% | 1.1% |
| 2014 | 4.4% | 0.31% |
| 2013 | 5.88% | 1.18% |
| 2012 | 7.54% | 2.38% |
| 2011 | 8.46% | 2.96% |
| 2010 | 6.95% | 1.52% |
| 2009 | 8.03% | 2.08% |
| 2008 | 12.7% | 4.26% |
| 2007 | 7.08% | 1.25% |
| 2006 | 11.6% | 2.77% |
| 2005 | 8.61% | 3.01% |
| 2004 | 6.95% | 2.79% |
| 2003 | 9.19% | 1.3% |
| 2002 | 8.03% | 2.19% |
| 2001 | 6.56% | 2.93% |
| 2000 | 8.6% | 2.37% |
| 1999 | 7.75% | 2.13% |
| 1998 | 6.66% | 2.39% |
| 1997 | 8.72% | 3.11% |
Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).
GeoRank.org/economy/botswana/malta | CC BY
Over the past 29 years, Botswana has recorded an average annual inflation rate of 6.56%, compared with 2.22% in Malta. In 2025, inflation was 2.66% in Botswana and 2.36% in Malta.
Top exports between countries
Balance of trade
|
Botswana
|
Malta
|
|
|---|---|---|
|
Current account balance
|
-$821M
2024 |
$1.78B
2024 |
| Current account balance ranking |
113/190
2024 |
45/190
2024 |
| Current account balance, % of GDP |
-4.26%
2024 |
+7.1%
2024 |
| Goods imports |
$6.86B
2024 |
$7.56B
2024 |
| Goods exports |
$4.66B
2024 |
$4.58B
2024 |
| Service imports |
$1.29B
2024 |
$17.4B
2024 |
| Service exports |
$935M
2024 |
$25B
2024 |
| Imports of goods and services, % of GDP |
37.5%
2025 |
99.9%
2025 |
| Exports of goods and services, % of GDP |
32%
2025 |
119.1%
2025 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Botswana
|
Malta
|
|
|---|---|---|
| Economic freedom | 67.7 | 68.2 |
| Economic freedom ranking | 53/197 | 49/197 |
| Property rights | 71.7 | 85.5 |
| Government integrity | 59.6 | 54.3 |
| Judicial effectiveness | 70.2 | 80.2 |
| Tax burden | 87.1 | 68.5 |
| Government spending | 69.8 | 58.4 |
| Fiscal health | 72.4 | 63.2 |
| Business freedom | 61.5 | 83.2 |
| Labor freedom | 60.7 | 62.6 |
| Monetary freedom | 72 | 73.1 |
| Trade freedom | 77 | 79.4 |
| Investment freedom | 50 | 60 |
| Financial freedom | 60 | 50 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Botswana
|
Malta
|
|
| 2026 | 67.7 | 68.2 |
| 2025 | 69.9 | 66.8 |
| 2024 | 68 | 64.5 |
| 2023 | 64.9 | 67.5 |
| 2022 | 64.8 | 71.5 |
| 2021 | 67.6 | 70.2 |
| 2020 | 69.6 | 69.5 |
| 2019 | 69.5 | 68.6 |
| 2018 | 69.9 | 68.5 |
| 2017 | 70.1 | 67.7 |
| 2016 | 71.1 | 66.7 |
| 2015 | 69.8 | 66.5 |
| 2014 | 72 | 66.4 |
| 2013 | 70.6 | 67.5 |
| 2012 | 69.6 | 67 |
| 2011 | 68.8 | 65.7 |
| 2010 | 70.3 | 67.2 |
| 2009 | 69.7 | 66.1 |
| 2008 | 68.2 | 66 |
| 2007 | 68.1 | 66.1 |
| 2006 | 68.8 | 67.3 |
| 2005 | 69.3 | 68.9 |
| 2004 | 69.9 | 63.3 |
| 2003 | 68.6 | 61.1 |
| 2002 | 66.2 | 62.2 |
| 2001 | 66.8 | 62.9 |
| 2000 | 65.8 | 58.3 |
| 1999 | 62.9 | 59.3 |
| 1998 | 62.8 | 61.2 |
| 1997 | 59.1 | 57.9 |
| 1996 | 61.6 | 55.8 |
| 1995 | 56.8 | 56.3 |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08).
GeoRank.org/economy/botswana/malta | CC BY
The Economic Freedom Index for Botswana is 67.7, ranking 53/197, compared to 68.2 for Malta, ranking 49/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Botswana
|
Malta
|
|
|---|---|---|
| Services, % of GDP |
64.6%
2025 |
81.3%
2025 |
| Industry, % of GDP |
27.9%
2025 |
10.1%
2025 |
| Agriculture, forestry, and fishing, % of GDP |
1.78%
2025 |
0.47%
2025 |
|
GNI, Atlas method
|
$18.9B
2025 |
$24B
2025 |
| GNI per capita, PPP |
$19,960
2025 |
$64,900
2025 |
| Total reserves including gold |
$3.46B
2024 |
$1.54B
2025 |
| Total reserves ranking |
117/177
2024 |
134/177
2025 |
|
Net foreign direct investment
|
-$464M
2024 |
-$6.13B
2024 |
|
Net inflows of foreign direct investment
|
$467M
2024 |
$42.6B
2024 |
|
Net outflows of foreign direct investment
|
$3.02M
2024 |
$36.5B
2024 |
|
Servicing debt to the IMF, % of GNI
|
1.45%
2024 |
n/a |
| Poverty at national poverty lines |
16.1%
2015 |
16.7%
2021 |
|
Gross capital formation, % of GDP
|
29.2%
2025 |
18.7%
2025 |
GDP per capita map
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/botswana/malta | CC BY
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Data sources:
- World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
- The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08)
- U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
- TradeMap (2020–2025, retrieved 2026-07-08)
- United Nations | World Population Prospects (2026, retrieved 2026-07-08)
- 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.