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Economy of Equatorial Guinea vs Netherlands compared: GDP & Debt

Updated on by Georank team

Equatorial Guinea has a GDP of $12.8B compared to $1.21T for the Netherlands, ranking 148/197 and 19/197 by economy size, respectively.

Equatorial Guinea has $4.65B in government debt (36.4% of GDP), compared to $532B (43.8% of GDP) in the Netherlands.

Equatorial Guinea vs Netherlands GDP by year

Equatorial Guinea
Netherlands
1x
Year GDP, current $
Equatorial Guinea Netherlands
2024 $12,765,777,677 $1,214,927,698,573
2023 $12,337,550,584 $1,135,475,867,551
2022 $13,687,643,436 $1,046,540,797,549
2021 $12,215,878,033 $1,054,472,123,450
2020 $9,893,816,008 $932,560,861,701
2019 $11,364,133,550 $928,903,005,576
2018 $13,097,012,134 $929,733,599,797
2017 $12,200,913,879 $848,233,537,846
2016 $11,240,808,848 $797,163,949,290
2015 $13,185,496,881 $775,743,675,303
2014 $21,765,453,082 $901,556,501,756
2013 $21,948,834,284 $883,951,539,007
2012 $22,388,344,144 $845,689,017,066
2011 $21,357,343,669 $913,140,741,333
2010 $16,314,443,436 $852,464,982,433
2009 $15,027,795,173 $878,954,223,140
2008 $19,749,893,536 $957,901,566,041
2007 $13,071,718,759 $853,499,460,873
2006 $10,086,528,699 $737,593,995,289
2005 $8,217,369,093 $688,133,699,636
2004 $4,410,764,339 $661,224,886,143
2003 $2,484,745,935 $582,435,617,082
2002 $1,806,742,742 $475,529,972,123
2001 $1,461,139,022 $432,536,219,669
2000 $1,045,998,496 $417,649,282,154
1999 $621,117,886 $447,778,514,140
1998 $370,687,634 $438,612,530,549
1997 $442,337,871 $417,506,211,882
1996 $232,463,023 $451,372,549,020
1995 $141,853,361 $452,967,334,614
1994 $100,807,003 $379,688,232,232
1993 $136,047,906 $354,070,495,966
1992 $134,707,184 $363,497,050,125
1991 $110,906,029 $327,982,316,124
1990 $112,119,411 $318,799,003,994
1989 $88,265,975 $258,716,904,292
1988 $100,534,657 $262,295,966,105
1987 $93,345,860 $245,406,949,521
1986 $76,407,396 $201,157,708,221
1985 $62,118,570 $144,057,523,222
1984 $50,320,914 $144,124,462,912
1983 $44,442,457 $153,671,294,109
1982 $44,294,648 $158,712,765,536
1981 $36,731,423 $164,375,775,854
1980 $50,642,881 $195,439,301,707
1979 - $179,933,827,310
1978 - $156,089,077,205
1977 $103,987,520 $127,203,923,857
1976 $103,653,050 $109,329,386,564
1975 $104,295,643 $100,397,061,694
1974 $94,159,863 $87,371,810,804
1973 $81,203,227 $71,946,639,603
1972 $65,429,198 $54,787,070,173
1971 $64,946,955 $44,644,730,576
1970 $66,331,429 $38,220,884,519
1969 $67,225,714 $34,086,038,090
1968 $67,514,286 $30,097,635,751
1967 $72,317,447 $27,143,828,099
1966 $69,110,000 $24,741,480,717
1965 $64,748,333 $22,721,869,808
1964 $51,915,000 $20,232,048,553
1963 $44,266,667 $17,193,744,109
1962 $37,253,333 $15,847,582,341
1961 - $14,599,836,396
1960 - $13,282,979,015

Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).

GeoRank.org/economy/equatorial-guinea/netherlands | CC BY

GDP per capita in Equatorial Guinea vs Netherlands by year

Equatorial Guinea
GDP per capita

GDP per capita, PPP
Netherlands
GDP per capita

GDP per capita, PPP
1x
Year Current $
Equatorial Guinea Netherlands
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2024 $6,745 $17,567 $67,520 $86,174
2023 $6,678 $17,412 $63,516 $81,729
2022 $7,589 $18,140 $59,123 $78,630
2021 $6,946 $16,821 $60,142 $68,574
2020 $5,764 $13,677 $53,468 $62,597
2019 $6,804 $16,451 $53,555 $62,345
2018 $8,102 $18,413 $53,955 $58,819
2017 $7,809 $18,435 $49,514 $56,038
2016 $7,453 $16,649 $46,809 $53,162
2015 $9,069 $19,479 $45,794 $50,957
2014 $15,549 $27,177 $53,457 $49,751
2013 $16,304 $27,910 $52,602 $49,622
2012 $17,309 $30,012 $50,474 $47,653
2011 $17,198 $27,242 $54,702 $47,004
2010 $13,720 $26,168 $51,306 $45,301
2009 $13,233 $29,722 $53,172 $44,959
2008 $18,211 $30,523 $58,247 $46,714
2007 $12,617 $26,611 $52,101 $44,203
2006 $10,185 $23,511 $45,124 $41,208
2005 $8,674 $22,137 $42,165 $37,778
2004 $4,901 $19,354 $40,611 $35,961
2003 $2,931 $14,496 $35,897 $34,286
2002 $2,264 $13,255 $29,447 $34,568
2001 $1,949 $11,627 $26,956 $33,259
2000 $1,487 $7,420 $26,225 $31,895
1999 $931 $6,470 $28,319 $29,316
1998 $578 $5,280 $27,924 $27,749
1997 $717 $4,387 $26,745 $26,062
1996 $392 $1,793 $29,064 $24,564
1995 $248.3 $1,098 $29,301 $23,480
1994 $183.2 $951 $24,683 $22,414
1993 $256.7 $828 $23,156 $21,443
1992 $263.7 $756 $23,939 $20,831
1991 $225.3 $569 $21,764 $20,177
1990 $236.4 $577 $21,322 $19,203
1989 $193.2 - $17,423 -
1988 $228.7 - $17,771 -
1987 $220.9 - $16,734 -
1986 $188.8 - $13,804 -
1985 $161.1 - $9,941 -
1984 $137.9 - $9,992 -
1983 $129.4 - $10,696 -
1982 $137.5 - $11,089 -
1981 $121.1 - $11,537 -
1980 $175.5 - $13,812 -
1979 - - $12,817 -
1978 - - $11,196 -
1977 $376 - $9,180 -
1976 $369 - $7,937 -
1975 $362 - $7,346 -
1974 $319 - $6,450 -
1973 $268.6 - $5,353 -
1972 $211.4 - $4,110 -
1971 $205.6 - $3,384 -
1970 $206.8 - $2,931 -
1969 $208.4 - $2,647 -
1968 $211.7 - $2,364 -
1967 $231.9 - $2,155 -
1966 $226.7 - $1,986 -
1965 $217.1 - $1,848 -
1964 $177.8 - $1,668 -
1963 $154.8 - $1,437 -
1962 $132.9 - $1,342 -
1961 - - $1,254 -
1960 - - $1,156 -

Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).

GeoRank.org/economy/equatorial-guinea/netherlands | CC BY

Equatorial Guinea's GDP per capita is $6,745, ranking 106/197, compared to $67,520 in the Netherlands, ranking 13/197. Adjusted for purchasing power (GDP per capita PPP), Equatorial Guinea ranks 106th at $17,567, while the Netherlands ranks 11th at $86,174.

Economic indicators

Equatorial Guinea Netherlands
Gross domestic product
$12.8B
2024
$1.21T
2024
GDP rank
148/197
2024
19/197
2024
GDP growth
0.91%
2023-2024
1.08%
2023-2024
GDP per capita
$6,745
2024
$67,520
2024
GDP per capita rank
106/197
2024
13/197
2024
GDP per capita, PPP
$17,567
2024
$86,174
2024
GDP per capita PPP rank
106/197
2024
11/197
2024
Government debt
$4.65B
2024
$532B
2024
Debt-to-GDP ratio
36.4%
2024
43.8%
2024
Government debt per person
$2,458
2024
$29,571
2024
Government debt per person rank
110/185
2024
24/185
2024
Average annual personal income after taxes
$5,042
2026
$47,815
2026
Market capitalization of domestic companies n/a
$1.1T
2017
Number of millionaires n/a
1,267,000
2025
Number of billionaires n/a
13
2025
Income share by richest 10%
29.1%
2022
21.4%
2021
Income share by poorest 10%
2.6%
2022
3.6%
2021
Government expenditure, % of GDP
18.5%
2024
44.4%
2024
Consumer prices inflation
3.4%
2023-2024
3.35%
2023-2024
Unemployment rate
8.6%
2014
3.64%
2024
Population
1998075
18252623

Spending and national debt comparison by year

Equatorial Guinea
Spending

Debt
Netherlands
Spending

Debt
1x
Year % of GDP
Equatorial Guinea Netherlands
Government spending Government debt Government spending Government debt
2024 18.5% 36.4% 44.4% 43.8%
2023 19.2% 39.1% 44% 45.9%
2022 14.8% 29.8% 43.3% 48.4%
2021 12.7% 42.3% 45.9% 50.5%
2020 16.2% 49.4% 47.8% 53.4%
2019 16.8% 43.2% 42.1% 47.7%
2018 19.1% 40.6% 42.4% 51.6%
2017 20.1% 36.2% 42.8% 56%
2016 27.8% 41.1% 43.9% 60.9%
2015 41.6% 31.7% 45.3% 63.8%
2014 31.6% 12.6% 46.7% 67.2%
2013 29.3% 6.27% 47.5% 67.2%
2012 35.2% 7.1% 47.6% 65.7%
2011 27.5% 7.17% 47.8% 61.2%
2010 31.2% 7.89% 48.9% 58.9%
2009 39.8% 4.34% 48.4% 56.3%
2008 19.9% 0.49% 44.3% 54.4%
2007 19.7% 0.75% 43.3% 42.7%
2006 18.1% 1.22% 44% 45%
2005 14.1% 2.85% 43.4% 49.6%
2004 15.5% 4.54% 44.7% 50.1%
2003 11.8% 6.77% 45.8% 49.8%
2002 11.3% 19.4% 44.8% 48.7%
2001 13.5% 25.5% 44.1% 49.4%
2000 22.6% 36.6% 43.2% 52.2%
1999 18.7% 60.5% 44.3% 58.6%
1998 35.1% 59.2% 44.6% 62.7%
1997 14.8% 46.3% 45.7% 65.7%
1996 22.9% 91.2% 47.3% 71.2%
1995 141.5% 136.9% 53.9% 73%
1994 510% 216% 49.4% 73.5%
1993 256.3% 152.6% 50.9% 76.7%
1992 595% 136.9% 50.2% 75.6%
1991 284.5% 169.5% 49.6% 74.8%
1990 212.9% 157% 48.8% 75%
1989 116.8% 187% 54.5% 73.7%
1988 227.9% 154.5% 56.4% 73.7%
1987 183% 141.3% 58.5% 71.3%
1986 119% 152.5% 57% 68.9%
1985 115.4% 183.8% 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 (1990–2024, retrieved 2026-02-20); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1989, retrieved 2026-02-20).

GeoRank.org/economy/equatorial-guinea/netherlands | CC BY

In 2024, Equatorial Guinea's government spending was $2.36B, accounting for 18.5% of its GDP, while the Netherlands spent $540B, or 44.4% of GDP.

Debt-to-GDP ratio is 36.4% in Equatorial Guinea and 43.8% in the Netherlands, ranking 143/185 and 123/185, respectively.

Government deficit by year

Deficit/surplus
Equatorial Guinea

Netherlands
1x
Year Deficit/surplus, % of GDP
Equatorial Guinea Netherlands
2024 -0.55% -0.94%
2023 2.39% -0.37%
2022 11.7% 0.002%
2021 2.65% -2.26%
2020 -1.77% -3.72%
2019 1.82% 1.91%
2018 0.52% 1.49%
2017 -2.59% 1.35%
2016 -10.9% 0.23%
2015 -15.1% -1.84%
2014 -7.54% -2.17%
2013 -4.4% -2.87%
2012 -7.24% -3.83%
2011 0.83% -4.42%
2010 -4.53% -5.3%
2009 -6.47% -5.06%
2008 14.6% -0.06%
2007 17.2% -0.16%
2006 21.8% 0.04%
2005 18.5% -0.51%
2004 9.22% -1.82%
2003 9.99% -3.19%
2002 17.6% -2.23%
2001 14.9% -0.47%
2000 -2.67% 1.14%
1999 -0.19% 0.28%
1998 -7.65% -1.34%
1997 3.21% -1.6%
1996 -6.36% -1.91%
1995 -123.4% -8.72%
1994 -487% -3.53%
1993 -217.9% -3.13%
1992 -557% -3.12%
1991 -236% -2.05%
1990 -160.2% -4.08%
1989 -76.2% -5%
1988 -208.5% -4.23%
1987 -158% -5.39%
1986 -97.3% -4.62%
1985 -89.3% -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 2026-02-20); International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20).

GeoRank.org/economy/equatorial-guinea/netherlands | CC BY

In 2024, Equatorial Guinea's government deficit, the difference between spending and revenue, was $70.8M, equivalent to 0.55% of GDP. This compares to the Netherlands' deficit of $11.5B, or 0.94% of GDP.

Over the past 40 years, Equatorial Guinea recorded a fiscal deficit in 25 of those years, while the Netherlands ran a deficit in 32 years. On average, Equatorial Guinea posted an annual deficit equal to 58.6% of GDP, compared to deficit of 2.18% of GDP for the Netherlands.

Inflation comparison by year

Inflation
Equatorial Guinea

Netherlands
1x
Year Consumer prices inflation
Equatorial Guinea Netherlands
2024 3.4% 3.35%
2023 2.4% 3.84%
2022 4.9% 10%
2021 -0.1% 2.68%
2020 4.8% 1.27%
2019 1.2% 2.63%
2018 1.3% 1.7%
2017 0.7% 1.38%
2016 1.4% 0.32%
2015 1.7% 0.6%
2014 4.3% 0.98%
2013 3.2% 2.51%
2012 3.4% 2.46%
2011 4.8% 2.34%
2010 5.3% 1.28%
2009 5.7% 1.19%
2008 4.7% 2.49%
2007 2.8% 1.61%
2006 4.5% 1.1%
2005 5.6% 1.69%
2004 4.2% 1.26%
2003 7.3% 2.09%
2002 7.6% 3.29%
2001 8.7% 4.16%
2000 4.8% 2.36%
1999 0.4% 2.16%
1998 7.9% 1.96%
1997 3% 2.11%

Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2024, retrieved 2026-02-20); World Bank | Economy & Growth (1997–2024, retrieved 2026-04-06).

GeoRank.org/economy/equatorial-guinea/netherlands | CC BY

Over the past 28 years, Equatorial Guinea has recorded an average annual inflation rate of 3.93%, compared with 2.31% in the Netherlands. In 2024, inflation was 3.4% in Equatorial Guinea and 3.35% in the Netherlands.

Top exports between countries

Equatorial Guinea
Export category Export value
Raw materials & minerals $77.1M
Chemicals & pharma $44.2M
Metals $799K
Machinery & equipment $42K
Textiles & consumer goods $23K
Wood & paper products $3K
Netherlands
Export category Export value
Processed food, beverages & tobacco $11.1M
Animal & marine products $8.74M
Machinery & equipment $5.27M
Raw agricultural goods $2.56M
Chemicals & pharma $1.59M
Textiles & consumer goods $933K
Raw materials & minerals $769K
Metals $415K
Miscellaneous $124K
Weapons & explosives $41K

Balance of trade

Equatorial Guinea Netherlands
Current account balance
-$344M
1996
$111B
2024
Current account balance ranking
101/190
1996
5/190
2024
Current account balance, % of GDP
-148%
1996
+9.13%
2024
Goods imports
$292M
1996
$606B
2024
Goods exports
$175M
1996
$693B
2024
Service imports
$185M
1996
$262B
2024
Service exports
$4.88M
1996
$308B
2024
Imports of goods and services, % of GDP
25.4%
2024
71.4%
2024
Exports of goods and services, % of GDP
35.2%
2024
82.4%
2024

Economic freedom indices

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

Equatorial Guinea Netherlands
Economic freedom 47.4 78.5
Economic freedom ranking 175/197 11/197
Property rights 16.9 96
Government integrity 6.9 86.8
Judicial effectiveness 7.2 96.1
Tax burden 81 54
Government spending 90.8 42.2
Fiscal health 97.3 95.9
Business freedom 35.9 85
Labor freedom 45.2 59.3
Monetary freedom 73.5 77
Trade freedom 43.6 79.4
Investment freedom 40 90
Financial freedom 30 80

Economic freedom comparison by year

Equatorial Guinea
Netherlands
1x
Year Economic freedom index
Equatorial Guinea Netherlands
2026 47.4 78.5
2025 47.7 78.2
2024 47.7 77.3
2023 48.3 78
2022 47.2 79.5
2021 49.2 76.8
2020 48.3 77
2019 41 76.8
2018 42 76.2
2017 45 75.8
2016 43.7 74.6
2015 40.4 73.7
2014 44.4 74.2
2013 42.3 73.5
2012 42.8 73.3
2011 47.5 74.7
2010 48.6 75
2009 51.3 77
2008 51.6 77.4
2007 53.2 75.5
2006 51.5 75.4
2005 53.3 72.9
2004 53.3 74.5
2003 53.1 74.6
2002 46.4 75.1
2001 47.9 73
2000 45.6 70.4
1999 45.1 70.2
1998 - 69.2
1997 - 70.4
1996 - 69.7

Data sources: The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-03-09).

GeoRank.org/economy/equatorial-guinea/netherlands | CC BY

The Economic Freedom Index for Equatorial Guinea is 47.4, ranking 175/197, 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

Equatorial Guinea Netherlands
Services, % of GDP
51.1%
2024
70.5%
2024
Industry, % of GDP
45.8%
2024
17.5%
2024
Agriculture, forestry, and fishing, % of GDP
3.15%
2024
1.73%
2024
GNI, Atlas method
$8.96B
2024
$1.12T
2024
GNI per capita, PPP
$12,330
2024
$84,970
2024
Total reserves including gold
$1.54B
2023
$79.1B
2024
Total reserves ranking
134/177
2023
34/177
2024
Net foreign direct investment
-$376M
1996
$11.1B
2024
Net inflows of foreign direct investment
$188M
2024
-$17.1B
2024
Net outflows of foreign direct investment
$154M
2024
-$5.93B
2024
Poverty at national poverty lines
50.7%
2022
14.5%
2021
Gross capital formation, % of GDP
8.96%
2024
19.7%
2024

GDP per capita map

1x

Data sources: World Bank | Economy & Growth (1985–2024, retrieved 2026-04-06); U.S. Census Bureau (1985–2024, retrieved 2026-02-08).

GeoRank.org/economy/equatorial-guinea/netherlands | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06)
  2. International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20)
  3. International Monetary Fund (IMF) | Public Finances in Modern History (1880–1989, retrieved 2026-02-20)
  4. The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-03-09)
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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.