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Economy of Brazil vs Czech Republic compared: GDP & Debt

Updated on by Georank

Brazil has a GDP of $2.28T compared to $391B for the Czech Republic, ranking 11/197 and 42/197 by economy size, respectively.

Brazil has $2.13T in government debt (93.3% of GDP), compared to $174B (44.6% of GDP) in the Czech Republic.

Brazil vs Czech Republic GDP by year

Brazil
Czech Republic
1x
Year GDP, current $
Brazil Czech Republic
2025 $2,279,920,092,492 $391,026,962,800
2024 $2,185,821,610,689 $347,082,562,221
2023 $2,191,131,765,685 $345,059,295,660
2022 $1,951,923,942,083 $301,831,228,326
2021 $1,670,647,398,905 $290,972,714,482
2020 $1,476,107,231,310 $251,109,660,603
2019 $1,873,288,205,060 $256,794,209,029
2018 $1,916,933,898,011 $251,992,360,762
2017 $2,063,514,977,366 $221,563,575,696
2016 $1,795,693,482,853 $198,160,659,304
2015 $1,802,212,206,815 $189,107,698,562
2014 $2,456,043,727,199 $210,911,285,078
2013 $2,472,819,535,557 $213,024,360,541
2012 $2,465,227,802,807 $210,363,223,088
2011 $2,616,156,223,918 $231,429,378,717
2010 $2,208,837,745,101 $211,168,667,286
2009 $1,666,996,438,581 $206,971,882,705
2008 $1,695,855,083,498 $236,506,264,754
2007 $1,397,114,486,369 $190,040,702,287
2006 $1,107,626,541,435 $156,236,258,387
2005 $891,633,839,894 $137,264,185,596
2004 $669,289,424,806 $120,147,899,984
2003 $558,233,745,652 $100,435,924,705
2002 $509,795,273,807 $82,607,869,610
2001 $559,983,634,799 $68,135,304,464
2000 $655,448,231,984 $62,175,642,238
1999 $599,642,024,320 $65,586,562,605
1998 $863,710,759,256 $67,187,217,328
1997 $883,206,179,730 $62,539,765,163
1996 $850,426,432,992 $67,804,105,330
1995 $769,333,050,987 $60,572,381,311
1994 $525,369,467,296 $48,188,478,339
1993 $368,292,034,381 $41,155,654,032
1992 $328,191,909,882 $35,051,065,440
1991 $342,534,090,909 $30,071,014,282
1990 $384,959,818,182 $41,016,881,802
1989 $412,990,820,287 -
1988 $307,881,930,752 -
1987 $283,056,836,894 -
1986 $256,480,852,471 -
1985 $210,879,844,639 -
1984 $188,339,974,087 -
1983 $189,656,506,321 -
1982 $271,314,113,768 -
1981 $258,015,174,749 -
1980 $237,393,489,893 -
1979 $221,338,204,480 -
1978 $200,278,646,124 -
1977 $176,344,101,402 -
1976 $153,168,949,208 -
1975 $129,203,555,239 -
1974 $109,794,519,728 -
1973 $83,592,275,863 -
1972 $58,434,858,375 -
1971 $48,869,830,902 -
1970 $42,327,664,794 -
1969 $37,171,640,819 -
1968 $33,930,457,425 -
1967 $31,086,389,195 -
1966 $28,283,323,733 -
1965 $22,465,522,884 -
1964 $20,963,733,695 -
1963 $23,287,712,878 -
1962 $19,231,747,852 -
1961 $17,275,940,449 -
1960 $17,030,465,539 -

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

GeoRank.org/economy/brazil/czech-republic | CC BY

GDP per capita in Brazil vs Czech Republic by year

Brazil
GDP per capita

GDP per capita, PPP
Czech Republic
GDP per capita

GDP per capita, PPP
1x
Year Current $
Brazil Czech Republic
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $10,713 - $35,917 -
2024 $10,311 $22,338 $31,828 $57,285
2023 $10,378 $21,176 $31,762 $55,761
2022 $9,281 $19,877 $28,282 $52,947
2021 $7,973 $18,076 $27,696 $47,796
2020 $7,074 $16,102 $23,473 $44,839
2019 $9,030 $16,070 $24,063 $45,614
2018 $9,301 $15,464 $23,706 $41,638
2017 $10,081 $14,559 $20,913 $39,346
2016 $8,836 $14,309 $18,754 $36,445
2015 $8,936 $14,821 $17,932 $34,093
2014 $12,275 $15,827 $20,038 $32,743
2013 $12,459 $15,722 $20,260 $31,013
2012 $12,522 $15,198 $20,014 $29,466
2011 $13,397 $15,212 $22,049 $29,237
2010 $11,403 $14,452 $20,160 $28,154
2009 $8,679 $13,391 $19,817 $27,713
2008 $8,908 $13,445 $22,775 $27,938
2007 $7,410 $12,673 $18,453 $26,268
2006 $5,934 $11,751 $15,259 $23,914
2005 $4,828 $11,081 $13,442 $22,115
2004 $3,664 $10,526 $11,783 $20,988
2003 $3,091 $9,802 $9,852 $19,604
2002 $2,856 $9,617 $8,101 $18,344
2001 $3,176 $9,304 $6,669 $17,709
2000 $3,767 $9,092 $6,063 $16,332
1999 $3,494 $8,635 $6,378 $15,494
1998 $5,106 $8,599 $6,527 $15,064
1997 $5,299 $8,602 $6,069 $14,911
1996 $5,179 $8,301 $6,573 $14,781
1995 $4,757 $8,097 $5,865 $13,957
1994 $3,299 $7,727 $4,663 $12,862
1993 $2,349 $7,260 $3,984 $12,242
1992 $2,127 $6,869 $3,397 $11,963
1991 $2,258 $6,867 $2,917 $11,768
1990 $2,581 $6,688 $3,969 $12,848
1989 $2,819 - - -
1988 $2,141 - - -
1987 $2,006 - - -
1986 $1,854 - - -
1985 $1,556 - - -
1984 $1,420 - - -
1983 $1,461 - - -
1982 $2,138 - - -
1981 $2,080 - - -
1980 $1,959 - - -
1979 $1,870 - - -
1978 $1,733 - - -
1977 $1,562 - - -
1976 $1,390 - - -
1975 $1,201 - - -
1974 $1,045 - - -
1973 $815 - - -
1972 $583 - - -
1971 $500 - - -
1970 $444 - - -
1969 $399 - - -
1968 $374 - - -
1967 $351 - - -
1966 $328 - - -
1965 $268 - - -
1964 $257.3 - - -
1963 $294.2 - - -
1962 $250.2 - - -
1961 $231.6 - - -
1960 $235.3 - - -

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

GeoRank.org/economy/brazil/czech-republic | CC BY

Brazil's GDP per capita is $10,713, ranking 85/197, compared to $35,917 in the Czech Republic, ranking 35/197. Adjusted for purchasing power (GDP per capita PPP), Brazil ranks 88th at $22,338, while the Czech Republic ranks 35th at $57,285.

Economic indicators

Brazil Czech Republic
Gross domestic product
$2.28T
2025
$391B
2025
GDP rank
11/197
2025
42/197
2025
GDP growth
2.29%
2024-2025
2.58%
2024-2025
GDP per capita
$10,713
2025
$35,917
2025
GDP per capita rank
85/197
2025
35/197
2025
GDP per capita, PPP
$22,338
2024
$57,285
2024
GDP per capita PPP rank
88/197
2024
35/197
2024
Government debt
$2.13T
2025
$174B
2025
Debt-to-GDP ratio
93.3%
2025
44.6%
2025
Government debt per person
$9,999
2025
$16,026
2025
Government debt per person rank
60/185
2025
42/185
2025
Average annual personal income after taxes
$6,555
2026
$22,312
2026
Market capitalization of domestic companies
$871B
2025
$55.4B
2025
Number of millionaires
386,000
2026
n/a
Number of billionaires
70
2026
11
2026
Income share by richest 10%
39.3%
2024
21.5%
2023
Income share by poorest 10%
1.3%
2024
3.8%
2023
Government expenditure, % of GDP
47.4%
2025
43.5%
2025
Consumer prices inflation
5%
2024-2025
2.46%
2024-2025
Central bank interest rate
14.5%
2026
3.5%
2025
Unemployment rate
5.83%
2025
2.8%
2025
Population
213964342
10742283

Spending and national debt comparison by year

Brazil
Spending

Debt
Czech Republic
Spending

Debt
1x
Year % of GDP
Brazil Czech Republic
Government spending Government debt Government spending Government debt
2025 47.4% 93.3% 43.5% 44.6%
2024 45.5% 87% 42.9% 43.3%
2023 45.3% 84% 43.7% 42.2%
2022 43.4% 83.9% 43% 42.5%
2021 40.4% 88.9% 45% 40.7%
2020 46.2% 96% 46.3% 36.9%
2019 43% 87.1% 40.4% 29.6%
2018 44.2% 84.8% 40.1% 31.7%
2017 44.3% 82.7% 38.5% 33.8%
2016 45.5% 77.4% 39.4% 36.2%
2015 46.2% 71.7% 41.7% 39.5%
2014 41.4% 61.6% 42.3% 41.5%
2013 39.8% 59.6% 42.4% 44.1%
2012 39.3% 61.6% 44.4% 43.8%
2011 39.4% 60.6% 42.8% 39.4%
2010 39.5% 62.4% 43.2% 36.7%
2009 40.5% 64.7% 44.5% 33.4%
2008 39.9% 61.4% 40.9% 28.2%
2007 40.4% 63% 40.5% 27.3%
2006 42.6% 64.6% 41.5% 27.6%
2005 41.9% 67% 42.3% 27.7%
2004 39.7% 68% 42.2% 28.3%
2003 41.3% 71.5% 49% 28.1%
2002 44.5% 76.1% 44.4% 25.7%
2001 39.8% 67.3% 43.1% 22.6%
2000 34.5% 62.2% 40.6% 16.9%
1999 39.6% 44.5% 40.9% 15.1%
1998 40.9% 38.9% 41.6% 13.9%
1997 38.6% 31.8% 41.3% 12.1%
1996 38.2% 30.7% 41.4% 11.5%
1995 - 28% 52.8% 13.5%
1994 - 30% - -
1993 - 32.6% - -
1992 - 37.1% - -
1991 - 38.1% - -
1990 - 40.6% - -
1989 - 40.2% - -
1988 - 46.9% - -
1987 - 50.3% - -
1986 11.7% 49.4% - -
1985 11.1% 52.6% - -
1984 10% 55.8% - -
1983 9.7% 51.5% - -
1982 8.1% 32.8% - -
1981 7.8% 34.6% - -
1980 6.8% 39.7% - -
1979 9% 36.6% - -
1978 10.2% 37% - -
1977 10.4% 31% - -
1976 10.6% 31.8% - -
1975 10.7% 27.7% - -
1974 10.5% 25.7% - -
1973 11% 22.4% - -
1972 12.6% 22.5% - -
1971 11.7% 17.9% - -
1970 11.4% 17% - -
1969 11.2% 16.5% - -
1968 14.4% 15.8% - -
1967 13.5% 13.8% - -
1966 14.6% 19.6% - -
1965 14% 17.6% - -
1964 25.4% 22.2% - -
1963 22.8% 20.4% - -
1962 23.1% 23.7% - -
1961 12% 25.7% - -
1960 13.7% 22.3% - -

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1995–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–2000, retrieved 2026-07-08).

GeoRank.org/economy/brazil/czech-republic | CC BY

In 2025, Brazil's government spending was $1.08T, accounting for 47.4% of its GDP, while the Czech Republic spent $170B, or 43.5% of GDP.

Debt-to-GDP ratio is 93.3% in Brazil and 44.6% in the Czech Republic, ranking 29/185 and 119/185, respectively.

Government deficit by year

Deficit/surplus
Brazil

Czech Republic
1x
Year Deficit/surplus, % of GDP
Brazil Czech Republic
2025 -8.07% -2.03%
2024 -6.17% -2.03%
2023 -7.71% -3.73%
2022 -3.96% -3.07%
2021 -2.63% -4.95%
2020 -11.6% -5.65%
2019 -4.86% 0.28%
2018 -6.99% 0.88%
2017 -7.97% 1.46%
2016 -7.99% 0.68%
2015 -9.28% -0.67%
2014 -6.27% -2.09%
2013 -3.42% -1.3%
2012 -2.35% -3.92%
2011 -2.74% -2.71%
2010 -3.55% -4.14%
2009 -4.23% -5.46%
2008 -2.39% -2%
2007 -2.66% -0.68%
2006 -4.87% -2.19%
2005 -3.36% -3.06%
2004 -2.95% -2.4%
2003 -5.4% -6.87%
2002 -4.15% -6.34%
2001 -3.47% -5.76%
2000 -3.32% -3.55%
1999 -5.17% -3.08%
1998 -7.22% -4.14%
1997 -5.6% -3.14%
1996 -5.35% -2.98%
1995 - -12.3%
1994 - -
1993 - -
1992 - -
1991 - -
1990 - -
1989 - -
1988 - -
1987 - -
1986 -1.6% -
1985 -1.3% -
1984 -0.4% -
1983 0.1% -
1982 1.4% -
1981 1% -
1980 2.5% -
1979 0.4% -
1978 -0.1% -
1977 0.1% -
1976 0.1% -
1975 0% -
1974 0.6% -
1973 0.1% -
1972 -0.1% -
1971 -0.3% -
1970 -0.4% -
1969 -0.6% -
1968 -1.6% -
1967 -2.1% -
1966 -1.3% -
1965 -2% -
1964 -8.79% -
1963 -5.78% -
1962 -6.82% -
1961 -2.93% -
1960 -3.85% -
1959 -0.18% -
1958 -0.76% -
1957 -0.29% -
1956 -0.14% -
1955 -0.62% -
1954 -0.49% -
1953 -1.26% -
1952 0.64% -
1951 0.87% -
1950 -1.58% -
1949 -1.22% -
1948 0.002% -
1947 0.25% -
1946 -1.78% -
1945 -2.87% -
1944 -2.37% -
1943 -0.75% -
1942 -2.55% -
1941 -2.15% -
1940 -1.13% -
1939 -1.2% -
1938 -0.59% -
1937 -1.62% -
1936 -0.27% -
1935 -0.5% -
1934 -2.28% -
1933 -1.56% -
1932 -6.47% -
1931 -1.56% -
1930 -3.58% -
1929 -0.09% -
1928 0.57% -
1927 0.12% -
1926 -0.76% -
1925 -0.07% -
1924 -0.45% -
1923 -1.94% -
1922 -3.8% -
1921 -2.98% -
1920 -3.11% -
1919 -3.69% -
1918 -4.51% -
1917 -4.8% -
1916 -4.35% -
1915 -6.33% -
1914 -7.32% -
1913 -1.91% -
1912 -3.05% -
1911 -2.15% -
1910 -2.06% -
1909 -1.62% -
1908 -1.89% -
1907 0.38% -
1906 0.28% -
1905 0.96% -
1904 -0.62% -
1903 1.79% -
1902 1.59% -
1901 -2.46% -
1900 -5.57% -
1899 -2.13% -
1898 -14% -
1897 -2.38% -
1896 -0.79% -
1895 -1.33% -
1894 -4.11% -
1893 -1.77% -
1892 -2.6% -
1891 0.51% -
1890 -3.02% -
1889 -3.79% -
1888 0.63% -
1887 -0.76% -
1886 -3.8% -
1885 -5.71% -
1884 -3.89% -
1883 -3.33% -
1882 -1.58% -
1881 -1.9% -
1880 -4.84% -

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1880–2000, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1995–2025, retrieved 2026-07-08).

GeoRank.org/economy/brazil/czech-republic | CC BY

In 2025, Brazil's government deficit, the difference between spending and revenue, was $184B, equivalent to 8.07% of GDP. This compares to the Czech Republic's deficit of $7.92B, or 2.03% of GDP.

Over the past 31 years, Brazil recorded a fiscal deficit in 30 of those years, while the Czech Republic ran a deficit in 27 years. On average, Brazil posted an annual deficit equal to 5.19% of GDP, compared to deficit of 3.13% of GDP for the Czech Republic.

Inflation comparison by year

Inflation
Brazil

Czech Republic
1x
Year Consumer prices inflation
Brazil Czech Republic
2025 5% 2.46%
2024 4.4% 2.44%
2023 4.6% 10.7%
2022 9.3% 15.1%
2021 8.3% 3.84%
2020 3.2% 3.16%
2019 3.7% 2.85%
2018 3.7% 2.15%
2017 3.4% 2.45%
2016 8.7% 0.68%
2015 9% 0.31%
2014 6.3% 0.34%
2013 6.2% 1.44%
2012 5.4% 3.29%
2011 6.6% 1.92%
2010 5% 1.47%
2009 4.9% 1.02%
2008 5.7% 6.36%
2007 3.6% 2.85%
2006 4.2% 2.53%
2005 6.9% 1.86%
2004 6.6% 2.76%
2003 14.7% 0.12%
2002 8.4% 1.9%
2001 6.8% 4.66%
2000 7% 3.78%
1999 4.9% 2.14%
1998 3.2% 10.7%
1997 6.9% 8.6%

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/brazil/czech-republic | CC BY

Over the past 29 years, Brazil has recorded an average annual inflation rate of 6.09%, compared with 3.58% in the Czech Republic. In 2025, inflation was 5% in Brazil and 2.46% in the Czech Republic.

Top exports between countries

Brazil
Export category Export value
Machinery & equipment $36M
Processed food, beverages & tobacco $12.8M
Textiles & consumer goods $6.17M
Metals $2.3M
Raw materials & minerals $2.14M
Wood & paper products $1.7M
Chemicals & pharma $1.38M
Raw agricultural goods $1.09M
Precious metals & jewellery $1.06M
Animal & marine products $1.02M
Czech Republic
Export category Export value
Machinery & equipment $381M
Metals $79.8M
Textiles & consumer goods $51.6M
Transport & tourism services $51M
Chemicals & pharma $38M
Raw materials & minerals $33.6M
IT & IP services $10.2M
Miscellaneous $9.58M
Weapons & explosives $8.86M
Processed food, beverages & tobacco $4.72M

Balance of trade

Brazil Czech Republic
Current account balance
-$66.7B
2025
$2.44B
2025
Current account balance ranking
188/190
2025
41/190
2025
Current account balance, % of GDP
-2.93%
2025
+0.62%
2025
Goods imports
$291B
2025
$197B
2025
Goods exports
$351B
2025
$215B
2025
Service imports
$105B
2025
$42.9B
2025
Service exports
$54.4B
2025
$47.5B
2025
Imports of goods and services, % of GDP
17.5%
2025
61.1%
2025
Exports of goods and services, % of GDP
17.8%
2025
66.9%
2025

Economic freedom indices

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

Brazil Czech Republic
Economic freedom 52.4 73.2
Economic freedom ranking 148/197 25/197
Property rights 49.2 89.8
Government integrity 37.2 64.7
Judicial effectiveness 55.6 92.1
Tax burden 70.6 78.8
Government spending 39.8 44.2
Fiscal health 28 82.5
Business freedom 65.7 76.8
Labor freedom 57 55.1
Monetary freedom 76 75
Trade freedom 69 79.4
Investment freedom 40 70
Financial freedom 40 70

Economic freedom comparison by year

Brazil
Czech Republic
1x
Year Economic freedom index
Brazil Czech Republic
2026 52.4 73.2
2025 55.1 72.9
2024 53.2 70.2
2023 53.5 71.9
2022 53.3 74.4
2021 53.4 73.8
2020 53.7 74.8
2019 51.9 73.7
2018 51.4 74.2
2017 52.9 73.3
2016 56.5 73.2
2015 56.6 72.5
2014 56.9 72.2
2013 57.7 70.9
2012 57.9 69.9
2011 56.3 70.4
2010 55.6 69.8
2009 56.7 69.4
2008 56.2 68.1
2007 56.2 67.4
2006 60.9 66.4
2005 61.7 64.6
2004 62 67
2003 63.4 67.5
2002 61.5 66.5
2001 61.9 70.2
2000 61.1 68.6
1999 61.3 69.7
1998 52.3 68.4
1997 52.6 68.8
1996 48.1 68.1
1995 51.4 67.8

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

GeoRank.org/economy/brazil/czech-republic | CC BY

The Economic Freedom Index for Brazil is 52.4, ranking 148/197, compared to 73.2 for the Czech Republic, ranking 25/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Brazil Czech Republic
Services, % of GDP
59.7%
2025
60.8%
2025
Industry, % of GDP
20.1%
2025
28.7%
2025
Agriculture, forestry, and fishing, % of GDP
6.09%
2025
1.95%
2025
GNI, Atlas method
$2.25T
2025
$359B
2025
GNI per capita, PPP
$22,670
2025
$57,870
2025
Total reserves including gold
$359B
2025
$176B
2025
Total reserves ranking
13/177
2025
21/177
2025
Net foreign direct investment
-$47.5B
2025
-$1.88B
2025
Net inflows of foreign direct investment
$74.1B
2024
$13.5B
2024
Net outflows of foreign direct investment
$26.3B
2024
$12.9B
2024
Servicing debt to the IMF, % of GNI
5.4%
2024
n/a
Poverty at national poverty lines
4.2%
2020
10.2%
2021
Gross capital formation, % of GDP
17.1%
2025
26.8%
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/brazil/czech-republic | 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 (1880–2000, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Fiscal Monitor (1995–2025, 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)
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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.