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Economy of France vs Romania compared: GDP & Debt

Updated on by Georank team

France has a GDP of $3.16T compared to $383B for Romania, ranking 7/197 and 43/197 by economy size, respectively.

France has $3.58T in government debt (116.3% of GDP), compared to $219B (61.6% of GDP) in Romania.

The chart below compares the two countries' GDP growth in both current (nominal) and constant dollars, accounting for inflation over time.

France
GDP, current $

GDP, constant 2015 $
Romania
GDP, current $

GDP, constant 2015 $
Year GDP
France Romania
Current $ Constant $ Current $ Constant $
1960 $61,756,878,990 $508,897,750,935 - -
1961 $66,806,595,975 $533,344,343,072 - -
1962 $74,888,595,286 $569,994,161,067 - -
1963 $83,957,182,115 $605,326,016,607 - -
1964 $93,079,224,076 $644,223,451,498 - -
1965 $100,522,559,916 $675,197,188,364 - -
1966 $108,928,356,519 $710,376,197,079 - -
1967 $117,751,396,249 $745,158,757,032 - -
1968 $128,427,504,709 $778,321,728,133 - -
1969 $140,361,802,782 $833,684,910,477 - -
1970 $146,926,998,937 $885,376,114,120 - -
1971 $164,238,872,973 $932,571,962,138 - -
1972 $201,621,751,625 $974,886,243,665 - -
1973 $262,343,828,816 $1,039,326,074,354 - -
1974 $283,102,178,123 $1,088,078,748,925 - -
1975 $356,780,728,163 $1,075,844,942,666 - -
1976 $368,488,292,816 $1,123,030,884,958 - -
1977 $406,736,454,934 $1,163,152,896,909 - -
1978 $501,724,418,605 $1,208,457,476,980 - -
1979 $608,218,624,730 $1,253,113,736,481 - -
1980 $694,529,183,483 $1,274,121,102,725 - -
1981 $609,184,791,792 $1,289,261,671,632 - -
1982 $578,152,310,610 $1,320,752,051,529 - -
1983 $553,356,312,936 $1,337,420,703,410 - -
1984 $525,033,325,828 $1,358,946,108,005 - -
1985 $547,220,981,165 $1,380,268,983,034 - -
1986 $764,946,585,851 $1,413,251,000,996 - -
1987 $926,320,855,615 $1,449,327,712,382 $38,067,567,568 -
1988 $1,010,827,662,152 $1,519,101,594,975 $40,424,528,302 -
1989 $1,016,742,237,302 $1,586,020,591,646 $41,450,777,202 -
1990 $1,257,649,439,827 $1,630,899,060,963 $38,247,882,300 $116,460,149,705
1991 $1,258,961,748,634 $1,651,067,777,785 $28,850,634,900 $101,415,582,149
1992 $1,389,663,073,110 $1,676,098,974,379 $25,121,666,667 $92,524,246,376
1993 $1,314,383,368,080 $1,670,081,815,759 $26,361,160,450 $93,938,788,973
1994 $1,385,822,778,828 $1,709,890,902,349 $30,072,805,104 $97,632,408,356
1995 $1,595,219,345,512 $1,749,300,344,480 $37,430,162,103 $103,718,335,743
1996 $1,598,889,216,566 $1,773,739,467,493 $36,937,074,278 $107,771,339,314
1997 $1,449,392,222,971 $1,818,562,957,062 $35,575,214,078 $102,545,439,457
1998 $1,496,906,382,032 $1,881,350,558,838 $41,696,091,974 $100,463,958,893
1999 $1,486,915,879,702 $1,945,303,460,550 $35,953,156,754 $100,085,550,636
2000 $1,360,959,069,477 $2,025,858,476,151 $37,253,739,511 $102,548,872,692
2001 $1,370,376,677,299 $2,064,338,989,613 $40,395,116,581 $107,900,062,083
2002 $1,492,427,756,382 $2,086,380,974,763 $46,065,502,703 $114,053,593,614
2003 $1,835,095,983,049 $2,106,573,536,968 $57,806,384,143 $116,723,756,275
2004 $2,109,792,297,237 $2,166,995,343,502 $74,973,656,852 $128,895,841,499
2005 $2,192,146,403,028 $2,207,920,477,337 $98,454,380,120 $134,912,890,211
2006 $2,317,861,544,691 $2,267,844,862,926 $122,023,735,993 $145,744,791,283
2007 $2,655,816,911,867 $2,325,232,266,329 $174,588,782,939 $156,287,689,281
2008 $2,926,802,941,586 $2,334,072,135,222 $214,315,932,061 $170,834,114,653
2009 $2,700,075,882,519 $2,268,145,064,849 $174,110,532,659 $161,409,698,529
2010 $2,646,230,027,988 $2,313,515,332,183 $170,064,350,672 $155,105,339,844
2011 $2,870,408,553,990 $2,369,909,039,106 $192,623,977,894 $162,078,238,595
2012 $2,683,007,095,787 $2,374,265,767,668 $179,117,323,107 $165,163,587,446
2013 $2,816,077,607,875 $2,392,826,743,357 $189,798,603,751 $165,624,017,080
2014 $2,861,236,112,552 $2,416,703,156,974 $199,722,319,676 $172,441,103,432
2015 $2,442,483,452,643 $2,442,483,452,643 $177,885,131,240 $177,885,131,240
2016 $2,470,407,619,777 $2,463,489,569,347 $185,290,759,249 $182,972,525,962
2017 $2,588,868,323,335 $2,514,819,204,088 $210,147,385,855 $197,967,999,561
2018 $2,781,576,320,884 $2,556,210,832,760 $243,468,683,030 $210,085,482,251
2019 $2,722,793,515,172 $2,608,036,638,906 $251,677,082,534 $218,327,690,029
2020 $2,647,926,055,110 $2,413,981,867,676 $252,033,792,712 $210,305,491,426
2021 $2,966,433,692,008 $2,580,120,255,052 $286,578,196,368 $221,968,423,308
2022 $2,796,302,210,399 $2,646,451,030,890 $296,354,358,293 $230,770,154,207
2023 $3,051,831,611,385 $2,671,234,714,487 $350,775,856,415 $236,318,495,899
2024 $3,162,079,073,496 $2,702,385,011,318 $382,767,571,329 $238,241,389,260

Economic indicators

France Romania
Gross domestic product
$3.16T
2024
$383B
2024
GDP rank
7/197
2024
43/197
2024
GDP growth
3.61%
2023-2024
9.12%
2023-2024
GDP per capita
$46,150
2024
$20,072
2024
GDP per capita rank
27/197
2024
58/197
2024
GDP per capita, PPP
$61,322
2024
$48,712
2024
Government debt
$3.58T
2024
$219B
2024
Debt-to-GDP ratio
116.3%
2025
61.6%
2025
Government debt per person
$52,199
2024
$11,490
2024
Government debt per person rank
8/185
2024
49/185
2024
Average annual personal income after taxes
$33,898
2025
$13,200
2025
Market capitalization of domestic companies
$2.37T
2018
$47.4B
2024
Number of millionaires
2,868,031
2024
n/a
Number of billionaires
52
2025
6
2025
Income share by richest 10%
25%
2023
21.8%
2023
Income share by poorest 10%
3%
2023
2.4%
2023
Government expenditure, % of GDP
57.3%
2025
39.2%
2025
Consumer prices inflation
2%
2023-2024
7.3%
2024-2025
Central bank interest rate n/a
6.5%
2024
Unemployment rate
7.39%
2024
5.43%
2024
Population
68701054
18962595

GDP per capita in France vs Romania

France's GDP per capita is $46,150, ranking 27/197, compared to $20,072 in Romania, ranking 58/197. Adjusted for purchasing power (GDP per capita PPP), France ranks 29th at $61,322, while Romania ranks 46th at $48,712.

France
GDP per capita

GDP per capita, PPP
Romania
GDP per capita

GDP per capita, PPP
Year Current $
France Romania
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
1960 $1,303 - - -
1961 $1,395 - - -
1962 $1,548 - - -
1963 $1,718 - - -
1964 $1,884 - - -
1965 $2,015 - - -
1966 $2,165 - - -
1967 $2,321 - - -
1968 $2,513 - - -
1969 $2,724 - - -
1970 $2,825 - - -
1971 $3,128 - - -
1972 $3,807 - - -
1973 $4,914 - - -
1974 $5,267 - - -
1975 $6,607 - - -
1976 $6,795 - - -
1977 $7,465 - - -
1978 $9,167 - - -
1979 $11,063 - - -
1980 $12,565 - - -
1981 $10,956 - - -
1982 $10,360 - - -
1983 $9,862 - - -
1984 $9,312 - - -
1985 $9,657 - - -
1986 $13,430 - - -
1987 $16,176 - $1,659 -
1988 $17,550 - $1,753 -
1989 $17,547 - $1,790 -
1990 $21,586 $17,472 $1,648 $5,277
1991 $21,501 $18,178 $1,254 $4,792
1992 $23,615 $18,790 $1,102 $4,512
1993 $22,239 $19,071 $1,158 $4,696
1994 $23,360 $19,874 $1,323 $4,992
1995 $26,792 $20,688 $1,650 $5,425
1996 $26,758 $21,261 $1,633 $5,744
1997 $24,169 $22,185 $1,577 $5,563
1998 $24,869 $23,261 $1,853 $5,544
1999 $24,576 $24,204 $1,600 $5,596
2000 $22,341 $26,002 $1,660 $5,849
2001 $22,332 $27,350 $1,825 $6,521
2002 $24,145 $28,350 $2,120 $7,162
2003 $29,480 $28,028 $2,679 $7,560
2004 $33,645 $28,925 $3,495 $8,991
2005 $34,696 $30,431 $4,618 $9,602
2006 $36,432 $32,430 $5,758 $11,557
2007 $41,486 $34,067 $8,360 $13,703
2008 $45,465 $35,053 $10,435 $16,782
2009 $41,728 $34,667 $8,548 $16,632
2010 $40,695 $35,912 $8,400 $17,357
2011 $43,930 $37,510 $9,561 $18,804
2012 $40,864 $37,671 $8,930 $19,807
2013 $42,669 $39,583 $9,498 $19,678
2014 $43,148 $40,218 $10,032 $20,633
2015 $36,702 $40,916 $8,977 $21,630
2016 $37,024 $42,880 $9,405 $23,905
2017 $38,687 $44,469 $10,728 $26,943
2018 $41,418 $46,381 $12,502 $29,586
2019 $40,408 $51,130 $12,992 $33,638
2020 $39,170 $49,482 $13,082 $34,386
2021 $43,725 $52,517 $14,987 $37,733
2022 $41,083 $56,181 $15,558 $42,218
2023 $44,691 $58,318 $18,404 $45,777
2024 $46,150 $61,322 $20,072 $48,712

Spending and national debt comparison

In 2024, France's government spending was $1.81T, accounting for 57.3% of its GDP, while Romania's spent $152B, or 39.2% of GDP.

Debt-to-GDP ratio is 116.3% in France and 61.6% in Romania, ranking 12/185 and 74/185, respectively.

France
Government spending

Government debt
Romania
Government spending

Government debt
Year % of GDP
France Romania
Government spending Government debt Government spending Government debt
1960 22.2% 28.5% - -
1961 21.9% 26.3% - -
1962 21.7% 23.6% 43.4% -
1963 22.6% 22.2% 23.1% -
1964 21% 19.6% 25.1% -
1965 21.1% 17.6% 25.6% -
1966 21.4% 15.3% 27.3% -
1967 21.4% 16.1% 30.6% -
1968 22.7% 15.8% 31.8% -
1969 21.5% 14.4% 32.1% -
1970 20.5% 21% 28.1% -
1971 20% 20.1% 27.2% -
1972 19.8% 17.7% 29.9% -
1973 19.7% 15.8% 32.6% -
1974 19.9% 15.4% 37.6% -
1975 22% 16.1% 40.6% -
1976 21.7% 15.1% 37.5% -
1977 21.4% 15% 39.9% -
1978 44.7% 21.2% 42.1% -
1979 44.9% 21.1% 42% -
1980 46% 20.7% 33.6% -
1981 48.5% 22% 30.4% -
1982 49.9% 25.3% 28.5% -
1983 50.2% 26.6% 25.8% -
1984 51.2% 29% 28.6% -
1985 51.9% 30.6% 41.6% -
1986 51.3% 31.1% 42.5% -
1987 50.7% 33.4% 40.7% -
1988 50.1% 33.3% 36.6% -
1989 48.9% 34% 40.1% -
1990 51.6% 36.8% 38.4% -
1991 52.7% 37.8% 38.3% -
1992 54% 41.7% 41.5% -
1993 56.5% 48.2% 33.5% -
1994 55.9% 51.6% 33.1% -
1995 56% 57.8% 34.4% 6.91%
1996 56% 60.6% 33.5% 11%
1997 55.6% 62% 33.5% 15%
1998 54% 62.1% 34.7% 16.5%
1999 53.7% 61.4% 35.1% 21.7%
2000 52.6% 59.7% 35% 29.6%
2001 52.8% 59.3% 33.2% 27.4%
2002 53.9% 61.3% 32.1% 27.4%
2003 54.4% 65.4% 31.8% 24.9%
2004 54% 66.9% 33.7% 21.3%
2005 54.3% 68.2% 32.3% 17.8%
2006 53.7% 65.4% 33.9% 12.7%
2007 53.6% 65.5% 34.6% 12.4%
2008 54.3% 69.8% 35.3% 13%
2009 58% 84.1% 36.3% 22.5%
2010 57.7% 86.3% 37.4% 30.2%
2011 57% 88.7% 35% 32.6%
2012 57.9% 91.7% 33.5% 36.2%
2013 58.6% 94.5% 34.2% 39.3%
2014 58.4% 96.1% 33.8% 40.5%
2015 57.6% 96.9% 34.2% 39.4%
2016 57.4% 98.1% 31.8% 39.5%
2017 57.7% 98.7% 31% 37.1%
2018 56.4% 98.5% 31.7% 36.2%
2019 55.3% 98.1% 33.2% 36.5%
2020 61.7% 114.8% 38.1% 49.3%
2021 59.5% 112.7% 37% 51.5%
2022 58.4% 111.3% 37.4% 51.7%
2023 56.9% 109.7% 36.6% 52.1%
2024 57.2% 113.1% 39.8% 57.2%
2025 57.3% 116.3% 39.2% 61.6%

Government deficit by year

In 2024, France's government deficit, the difference between spending and revenue, was -$183B, equivalent to -5.79% of GDP. This compares to Romania's deficit of -$33.1B, or -8.65% of GDP.

Over the past 38 years, France recorded a fiscal deficit in 38 of those years, while Romania ran a deficit in 34 years. On average, France posted an annual deficit equal to -4.03% of GDP, compared to deficit of -3.06% of GDP for Romania.

Deficit/surplus
France

Romania
Year Deficit/surplus, % of GDP
France Romania
1880 0.65% -
1881 0.64% -
1882 -0.15% -
1883 -0.23% -
1884 -0.35% -
1885 -0.59% -
1886 -0.5% -
1887 -0.07% -
1888 0.18% -
1889 0.09% -
1890 0.31% -
1891 0.36% -
1892 -0.03% -
1893 -0.3% -
1894 -0.08% -
1895 -0.07% -
1896 -0.03% -
1897 0.01% -
1898 0.29% -
1899 0.21% -
1900 0.21% -
1901 -0.39% -
1902 -0.37% -
1903 0.21% -
1904 0.3% -
1905 0.18% -
1906 -0.04% -
1907 0.23% -
1908 -0.15% -
1909 -0.11% -
1910 -0.12% -
1911 0.31% -
1912 0.23% -
1913 0.05% -
1914 0.05% -
1915 0.05% -
1916 0.05% -
1917 0.05% -
1918 0.05% -
1919 -2.65% -
1920 6.6% -
1921 4.63% -
1922 2.42% -
1923 1.85% -
1924 2.11% -
1925 -0.87% -
1926 -0.02% -
1927 -0.04% -
1928 1.13% -
1929 1.48% -
1930 -1.65% -
1931 -2.06% -
1932 -1.86% -
1933 -4.96% -
1934 -4.31% -
1935 -4.22% -
1936 -4.76% -
1937 -6.89% -
1938 -6.89% -
1939 -6.89% -
1940 -6.89% -
1941 -6.89% -
1942 -6.89% -
1943 -6.89% -
1944 -6.89% -
1945 -6.89% -
1946 -8.1% -
1947 -7.6% -
1948 -9.11% -
1949 -7.31% -
1950 -5.56% -
1951 -4.42% -
1952 -6.82% -
1953 -4.79% -
1954 -0.78% -
1955 -1.04% -
1956 -2.62% -
1957 -1.99% -
1958 0.08% -
1959 0.56% -
1960 -1.95% -
1961 -1.36% -
1962 -1.53% -4.86%
1963 -2.24% -1.61%
1964 -0.25% -3.11%
1965 -0.07% -1.29%
1966 -0.57% 0.91%
1967 -0.8% 1.23%
1968 -2.54% 1.65%
1969 -0.49% 0.93%
1970 0.02% 0.52%
1971 -0.13% 0.89%
1972 1.94% 1.21%
1973 1.97% 1.53%
1974 3.05% 0.51%
1975 -0.28% 0.41%
1976 1.01% 0.66%
1977 0.9% 0.23%
1978 -1.73% 0%
1979 -0.36% 0%
1980 -0.27% -1.95%
1981 -2.39% 0.61%
1982 -2.91% 0.36%
1983 -2.58% 9.35%
1984 -2.8% 15.2%
1985 -3.08% 6.36%
1986 -3.3% 5.72%
1987 -2.13% 2.37%
1988 -2.7% 8.4%
1989 -1.9% -2.87%
1990 -2.45% 1.03%
1991 -2.89% 3.23%
1992 -4.64% -4.55%
1993 -6.4% -0.35%
1994 -5.46% -2.2%
1995 -5.11% -3.32%
1996 -3.89% -4.74%
1997 -3.71% -5.19%
1998 -2.39% -5.33%
1999 -1.55% -3.58%
2000 -1.32% -3.99%
2001 -1.42% -3.2%
2002 -3.18% -2.59%
2003 -4.09% -2.29%
2004 -3.55% -3.39%
2005 -3.5% -0.69%
2006 -2.66% -1.36%
2007 -2.99% -3.05%
2008 -3.5% -4.6%
2009 -7.38% -6.86%
2010 -7.16% -6.22%
2011 -5.3% -4.14%
2012 -5.17% -2.39%
2013 -4.94% -2.44%
2014 -4.57% -1.76%
2015 -3.89% -1.35%
2016 -3.76% -2.5%
2017 -3.36% -2.86%
2018 -2.32% -2.74%
2019 -2.39% -4.55%
2020 -8.93% -9.54%
2021 -6.58% -6.7%
2022 -4.74% -5.83%
2023 -5.45% -5.61%
2024 -5.79% -8.65%
2025 -5.46% -7.83%

Inflation comparison by year

Over the past 29 years, France has recorded an average annual inflation rate of 1.62%, compared with 18.2% in Romania. In 2024, inflation was 2% in France and 7.3% in Romania.

Inflation
France

Romania
Year Inflation
France Romania France Romania
1996 1.98% 38.8%
1997 1.2% 154.8%
1998 0.65% 59.1%
1999 0.54% 45.8%
2000 1.68% 45.7%
2001 1.63% 34.5%
2002 1.92% 22.5%
2003 2.1% 15.4%
2004 2.14% 11.9%
2005 1.75% 9%
2006 1.68% 6.6%
2007 1.49% 4.8%
2008 2.81% 7.8%
2009 0.09% 5.6%
2010 1.53% 6.1%
2011 2.11% 5.8%
2012 1.95% 3.3%
2013 0.86% 4%
2014 0.51% 1.1%
2015 0.04% -0.6%
2016 0.18% -1.6%
2017 1.03% 1.3%
2018 1.85% 4.6%
2019 1.11% 3.8%
2020 0.48% 2.6%
2021 1.64% 5%
2022 5.22% 13.8%
2023 4.88% 10.4%
2024 2% 5.6%
2025 - 7.3%

Top exports between countries

France
Export category Export value
Machinery & equipment $2.55B
Chemicals & pharma $1.3B
Metals $508M
Transport & tourism services $488M
Textiles & consumer goods $479M
Business & finance services $455M
IT & IP services $300M
Processed food, beverages & tobacco $254M
Manufacturing & construction services $217M
Raw agricultural goods $207M
Romania
Export category Export value
Machinery & equipment $3.81B
Business & finance services $965M
Textiles & consumer goods $837M
Transport & tourism services $751M
IT & IP services $590M
Raw materials & minerals $535M
Manufacturing & construction services $513M
Metals $321M
Chemicals & pharma $238M
Raw agricultural goods $186M

Balance of trade

France Romania
Current account balance
$2.69B
2024
-$32B
2024
Current account balance ranking
39/189
2024
184/189
2024
Current account balance, % of GDP
+0.09%
2024
-8.36%
2024
Goods imports
$733B
2024
$129B
2024
Goods exports
$668B
2024
$93.3B
2024
Service imports
$341B
2024
$30.6B
2024
Service exports
$403B
2024
$42.9B
2024
Imports of goods and services, % of GDP
34%
2024
41.7%
2024
Exports of goods and services, % of GDP
33.2%
2024
35.6%
2024

Economic freedom indices

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

France Romania
Economic freedom 64.4 66.5
Economic freedom ranking 69/197 57/197
Property rights 92.9 81.7
Government integrity 74.3 49.1
Judicial effectiveness 84.2 67
Tax burden 54.3 93.7
Government spending 0 59.1
Fiscal health 30 36.1
Business freedom 81.9 75.1
Labor freedom 60.2 67.8
Monetary freedom 70.3 69.2
Trade freedom 79.6 79.6
Investment freedom 75 70
Financial freedom 70 50

Economic freedom by year comparison

The Economic Freedom Index for France is 64.4, ranking 69/197, compared to 66.5 for Romania, ranking 57/197. The chart below displays a comparison of annual changes in economic freedom indexes.

France
Romania
Year Economic freedom index
France Romania
1995 64.4 42.9
1996 63.7 46.2
1997 59.1 50.8
1998 58.9 54.4
1999 59.1 50.1
2000 57.4 52.1
2001 58 50
2002 58 48.7
2003 59.2 50.6
2004 60.9 50
2005 60.5 52.1
2006 61.1 58.2
2007 62.1 61.2
2008 64.7 61.7
2009 63.3 63.2
2010 64.2 64.2
2011 64.6 64.7
2012 63.2 64.4
2013 64.1 65.1
2014 63.5 65.5
2015 62.5 66.6
2016 62.3 65.6
2017 63.3 69.7
2018 63.9 69.4
2019 63.8 68.6
2020 66 69.7
2021 65.7 69.5
2022 65.9 67.1
2023 63.6 64.5
2024 62.5 64.4
2025 64.4 66.5

More economic indicators

France Romania
Services, % of GDP
70.4%
2024
62.5%
2024
Industry, % of GDP
17.5%
2024
25%
2024
Agriculture, forestry, and fishing, % of GDP
1.43%
2024
3.28%
2024
GNI, Atlas method
$3.1T
2024
$336B
2024
GNI per capita, PPP
$62,620
2024
$47,420
2024
Total reserves including gold
$283B
2024
$73.4B
2024
Total reserves ranking
13/177
2024
35/177
2024
Net foreign direct investment
-$10.3B
2024
-$6.21B
2024
Net inflows of foreign direct investment
$52.1B
2024
$7.35B
2024
Net outflows of foreign direct investment
$41.7B
2024
$1.15B
2024
Poverty at national poverty lines
15.6%
2021
19%
2023
Gross capital formation, % of GDP
21.9%
2024
24.3%
2024

GDP per capita map

GDP per capita

Compare countries by 7 more topics

Economy comparisons

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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.