Skip to content

Germany economy ranking: GDP & GDP per capita, debt

Updated on by Georank

Germany ranked 3/197 by economy size with a GDP of $5.05T and 18/197 by GDP per capita at $60,496. Germany has $3.18T in government debt, with a debt-to-GDP ratio of 62.9%.

In 2025, Germany made up 4.27% of the world's economy, compared to 6.19% in 1960.

Germany GDP & GDP growth by year

GDP, current $
Real growth
1x
Year GDP GDP growth
2025 $5,050,922,925,047 0.24%
2024 $4,685,592,577,805 -0.5%
2023 $4,562,207,532,490 -0.87%
2022 $4,201,021,706,479 1.81%
2021 $4,355,251,953,411 3.91%
2020 $3,941,398,957,074 -4.13%
2019 $3,959,894,794,039 0.98%
2018 $4,055,433,215,302 1.14%
2017 $3,765,351,626,106 2.8%
2016 $3,536,787,895,179 2.22%
2015 $3,425,099,578,746 1.66%
2014 $3,964,870,735,761 2.18%
2013 $3,807,023,797,051 0.4%
2012 $3,596,483,233,406 0.46%
2011 $3,823,575,803,794 3.76%
2010 $3,467,093,769,667 4.13%
2009 $3,478,545,516,684 -5.54%
2008 $3,808,197,720,125 0.89%
2007 $3,484,056,680,855 2.89%
2006 $3,046,308,753,671 3.87%
2005 $2,893,393,187,362 0.89%
2004 $2,852,317,768,062 1.16%
2003 $2,534,715,518,349 -0.53%
2002 $2,102,350,798,306 -0.23%
2001 $1,966,381,496,642 1.64%
2000 $1,966,980,701,145 2.88%
1999 $2,213,873,468,587 2.13%
1998 $2,247,760,364,566 2.1%
1997 $2,218,790,886,533 1.85%
1996 $2,506,576,553,158 1.04%
1995 $2,593,053,091,306 1.5%
1994 $2,215,282,632,277 2.6%
1993 $2,078,954,217,438 -0.97%
1992 $2,141,377,582,968 2.01%
1991 $1,875,792,575,133 5.11%
1990 $1,778,162,195,860 5.26%
1989 $1,404,092,925,205 3.9%
1988 $1,406,367,016,372 3.71%
1987 $1,302,932,318,825 1.4%
1986 $1,050,092,624,516 2.29%
1985 $735,218,723,093 2.33%
1984 $727,767,760,979 2.82%
1983 $773,507,930,295 1.57%
1982 $779,421,633,755 -0.39%
1981 $803,404,797,058 0.53%
1980 $953,772,499,462 1.41%
1979 $884,574,218,333 4.15%
1978 $743,182,891,918 3.01%
1977 $602,698,323,086 3.35%
1976 $521,658,712,133 4.95%
1975 $492,434,094,920 -0.87%
1974 $446,934,971,657 0.89%
1973 $399,833,571,167 4.78%
1972 $300,899,944,795 4.3%
1971 $250,900,942,397 3.13%
1970 $216,629,229,947 5.1%
1969 $177,733,486,326 7.42%
1968 $156,527,292,653 5.67%
1967 $145,100,667,773 -0.33%
1966 $143,304,275,684 2.81%
1965 $134,774,688,191 5.24%
1964 $123,330,404,665 6.64%
1963 $112,232,503,744 2.74%
1962 $105,895,435,234 4.62%
1961 $96,558,204,043 4.3%
1960 $84,619,845,881 -

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

GeoRank.org/economy/germany | CC BY

Germany GDP per capita by year

GDP per capita
GDP per capita, PPP
1x
Year Current $
GDP per capita GDP per capita, PPP
2025 $60,496 -
2024 $56,104 $73,552
2023 $54,777 $71,684
2022 $50,507 $69,049
2021 $52,349 $62,531
2020 $47,395 $58,686
2019 $47,656 $59,271
2018 $48,916 $56,273
2017 $45,554 $54,110
2016 $42,949 $51,570
2015 $41,930 $48,545
2014 $48,960 $47,939
2013 $47,207 $45,889
2012 $44,718 $44,229
2011 $47,631 $43,398
2010 $42,397 $39,726
2009 $42,472 $37,574
2008 $46,379 $38,444
2007 $42,351 $36,914
2006 $36,980 $34,741
2005 $35,084 $32,314
2004 $34,567 $31,753
2003 $30,711 $30,301
2002 $25,487 $29,514
2001 $23,878 $28,674
2000 $23,926 $27,474
1999 $26,965 $26,518
1998 $27,396 $25,446
1997 $27,047 $24,649
1996 $30,600 $24,169
1995 $31,747 $23,631
1994 $27,202 $22,869
1993 $25,617 $21,900
1992 $26,560 $21,746
1991 $23,443 $21,001
1990 $22,386 $19,468
1989 $17,829 -
1988 $17,997 -
1987 $16,739 -
1986 $13,511 -
1985 $9,464 -
1984 $9,347 -
1983 $9,900 -
1982 $9,950 -
1981 $10,246 -
1980 $12,183 -
1979 $11,322 -
1978 $9,517 -
1977 $7,711 -
1976 $6,659 -
1975 $6,259 -
1974 $5,660 -
1973 $5,065 -
1972 $3,824 -
1971 $3,204 -
1970 $2,771 -
1969 $2,281 -
1968 $2,025 -
1967 $1,886 -
1966 $1,871 -
1965 $1,774 -
1964 $1,637 -
1963 $1,502 -
1962 $1,431 -
1961 $1,316 -
1960 $1,162 -

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

GeoRank.org/economy/germany | CC BY

Germany has a GDP per capita of $60,496, ranking 18/197, a GDP per capita based on purchasing power parity (PPP) of $73,552, ranking 20/197, and a median annual after tax income of $40,352, ranking 17/197.

Germany GDP rankings by year

GDP
GDP per capita
GDP per capita, PPP
1x
Year Rank
GDP GDP per capita GDP per capita, PPP
2025 3 15 -
2024 3 18 16
2023 3 20 19
2022 4 22 18
2021 4 20 17
2020 4 18 13
2019 4 18 16
2018 4 18 16
2017 4 18 14
2016 4 19 17
2015 4 22 20
2014 4 21 19
2013 4 22 22
2012 4 25 22
2011 4 24 22
2010 4 24 25
2009 4 19 28
2008 4 24 25
2007 4 23 25
2006 3 23 25
2005 3 23 25
2004 3 20 25
2003 3 19 24
2002 3 21 23
2001 3 20 23
2000 3 21 23
1999 3 15 23
1998 3 14 22
1997 3 13 22
1996 3 9 18
1995 3 8 16
1994 3 9 15
1993 3 9 15
1992 3 10 15
1991 3 14 15
1990 3 14 18
1989 3 16 -
1988 3 15 -
1987 3 14 -
1986 3 16 -
1985 3 22 -
1984 3 21 -
1983 3 21 -
1982 3 22 -
1981 3 24 -
1980 3 19 -
1979 3 18 -
1978 3 17 -
1977 3 21 -
1976 3 23 -
1975 3 21 -
1974 3 21 -
1973 3 15 -
1972 3 16 -
1971 2 15 -
1970 3 16 -
1969 3 14 -
1968 3 15 -
1967 2 18 -
1966 2 18 -
1965 2 18 -
1964 2 18 -
1963 2 17 -
1962 2 16 -
1961 2 17 -
1960 2 17 -

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

GeoRank.org/economy/germany | CC BY

Compared with 2000, in 2025 Germany is ranked 3rd out of 179 by GDP (unchanged), 15th by GDP per capita (up from 21st), and 16th by GDP per capita PPP (up from 23rd).

Economic indicators

Germany Rank
Gross domestic product
$5.05T
2025
3/197
GDP growth
0.24%
2024-2025
178/194
GDP per capita
$60,496
2025
18/197
GDP per capita, PPP
$73,552
2024
20/197
Government debt
$3.18T
2025
8/185
Debt-to-GDP ratio
62.9%
2025
70/185
Government debt per person
$38,071
2025
21/185
Average annual personal income after taxes
$40,352
2026
17/197
Listed domestic companies
416
2025
19/103
Market capitalization of domestic companies
$2.9T
2025
7/100
Number of millionaires
2,648,000
2026
4/40
Millionaire frequency
1 in 26
2026
16/40
Number of billionaires
212
2026
4/74
Billionaire frequency
1 in 321,017
2026
14/74
Income share by richest 10%
26.2%
2022
98/169
Income share by poorest 10%
2.3%
2022
115/169
Government expenditure, % of GDP
50.5%
2025
16/195
Consumer prices inflation
2.17%
2024-2025
127/195
Unemployment rate
3.8%
2025
136/196
Population
82830814
19/197

Government spending, deficit, and debt by year

Spending
Debt
Deficit/surplus
1x
Year % of GDP
Government spending Government debt Government deficit/surplus
2025 50.5% 62.9% -2.67%
2024 49.4% 62.2% -2.66%
2023 48.1% 62.3% -2.49%
2022 48.6% 64.4% -1.91%
2021 50.7% 67.9% -3.17%
2020 51.1% 68% -4.38%
2019 45.5% 58.7% 1.33%
2018 44.7% 60.8% 1.88%
2017 44.5% 64% 1.34%
2016 44.7% 68.3% 1.13%
2015 44.5% 71.2% 0.91%
2014 44.5% 74.5% 0.73%
2013 45.2% 77.5% 0.12%
2012 45.1% 79.8% -0.05%
2011 45.3% 78.5% -0.84%
2010 48.1% 81% -4.42%
2009 48.3% 72.4% -3.18%
2008 44.4% 65.2% -0.26%
2007 43.5% 63.7% 0.15%
2006 45.3% 66.4% -1.76%
2005 46.9% 67.1% -3.37%
2004 47% 65% -3.42%
2003 48.5% 63.3% -3.83%
2002 48.2% 59.8% -4.09%
2001 47.7% 58.1% -3.12%
2000 48.1% 59.2% -1.71%
1999 48.5% 60.3% -1.87%
1998 48.3% 59.4% -2.65%
1997 48.8% 58.8% -3.03%
1996 49.6% 57.7% -3.64%
1995 55.2% 54.9% -9.44%
1994 48.3% 47.5% -2.54%
1993 48.3% 45.1% -3.11%
1992 47.4% 41.4% -2.63%
1991 46.5% 39% -3.21%
1990 44.7% 40.7% -1.94%
1989 44.3% 39.2% 0.08%
1988 45.6% 40.5% -2.02%
1987 46% 40.1% -1.85%
1986 45.7% 39.1% -1.18%
1985 46.6% 39.2% -1.18%
1984 47.2% 38.7% -2.04%
1983 47.9% 38% -2.95%
1982 49.1% 36.4% -3.56%
1981 49% 33.6% -4.03%
1980 48.2% 30.1% -3.02%
1979 47.4% 28.2% -2.71%
1978 47.7% 27.4% -2.62%
1977 49% 26% -2.56%
1976 49.4% 25.1% -3.5%
1975 50.3% 23.7% -5.78%
1974 46% 18.5% -1.69%
1973 42.4% 17.3% 1.14%
1972 41.8% 18% -0.37%
1971 40.9% 17.7% 0.16%
1970 39.5% 17.7% 0.53%
1969 29.7% 20.3% -0.43%
1968 28.5% 22.5% 1.39%
1967 28.8% 22.5% 2.73%
1966 28.3% 19.8% 1.76%
1965 28.4% 18.7% 2.26%
1964 29% 18.2% 1.49%
1963 29.1% 18.1% 1.43%
1962 29.2% 17.6% 0.49%
1961 28.8% 18.7% -0.12%
1960 22.9% 18.4% -0.34%
1959 29.3% 18.4% 0.77%
1958 29% 18.8% 1.77%
1957 28.6% 19.4% 1.99%
1956 29.5% 20.4% 0.59%
1955 29.9% 21.4% -1.41%
1954 30.7% 20.9% -0.37%
1953 30.4% 18.2% -0.13%
1952 30.4% 16.3% 0%
1951 30.2% 16.2% 1.15%
1950 27.2% 17.8% 1.81%
1949 - - -
1948 - - -
1947 - - -
1946 - - -
1945 - - -
1944 - - -
1943 - - -
1942 - - -
1941 - - -
1940 - - -
1939 - - -
1938 - 31.5% -
1937 - 22.4% -
1936 - 21.5% -
1935 - 21.9% -
1934 12.7% 22.1% -0.64%
1933 11% 25.3% -0.43%
1932 12.6% 25.2% -1.11%
1931 12.7% 20.8% -1.03%
1930 16.3% 16.8% -1.52%
1929 14.3% 13.1% -0.9%
1928 14.1% 10.7% -1.47%
1927 12.7% 9.73% -0.44%
1926 14.2% 12.3% -1.3%
1925 12.2% 11.6% 0.34%
1924 - - -
1923 - - -
1922 - - -
1921 - - -
1920 - - -
1919 - - -
1918 - - -
1917 - - -
1916 - - -
1915 - - -
1914 - - -
1913 37.7% 38.5% 0.007%
1912 17.6% 38% -0.26%
1911 19% 40.7% 0.06%
1910 19.5% 42.4% -0.21%
1909 20% 41.7% 0.11%
1908 18.4% 39.2% -0.11%
1907 17.8% 37.4% -0.14%
1906 17.2% 37.2% 0.76%
1905 16.4% 37.4% 1.21%
1904 16.8% 39.5% 0.41%
1903 18.5% 40.2% 0.88%
1902 19.4% 42.4% 0.08%
1901 18.9% 40.8% 0.91%
1900 17.9% 38.2% 0.27%
1899 16.8% 38.6% 0.6%
1898 17.8% 41.7% 0.47%
1897 16.8% 41.5% 0.39%
1896 16.8% 43.8% 0.63%
1895 16.3% 46% 0.47%
1894 17.1% 47% 0.44%
1893 16.2% 45.5% 0.42%
1892 16.8% 44.7% -0.24%
1891 16.9% 44.9% 1.18%
1890 16.3% 39.2% 0.12%
1889 15.3% 36.6% 1.16%
1888 15.2% 39.3% 0.62%
1887 14.9% 39.7% 0.88%
1886 13.6% 39.5% 0.23%
1885 13.2% 38.9% 0.21%
1884 12.6% 35.8% 0.23%
1883 12.5% 32.8% 0.55%
1882 12.4% 31.2% 0.41%
1881 11.2% 29.8% 0.12%
1880 10.3% 25.4% -0.13%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1880–1990, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1991–2025, retrieved 2026-07-08).

GeoRank.org/economy/germany | CC BY

This chart shows Germany's government spending, budget balance, and debt over time, each expressed as a share of GDP.

Over the past 50 years, Germany recorded a fiscal deficit in 41 of them, with an average annual deficit equal to 2.14% of GDP. In 2025, government spending reached $2.55T (50.5% of GDP), with a deficit of 2.67%.

The national debt reached $3.18T, ranking 8th out of 185 countries by total size, with a debt-to-GDP ratio of 62.9%, ranking 70th.

Inflation rate by year

1x
Year Inflation
2025 2.17%
2024 2.26%
2023 5.95%
2022 6.87%
2021 3.07%
2020 0.14%
2019 1.45%
2018 1.73%
2017 1.51%
2016 0.49%
2015 0.51%
2014 0.91%
2013 1.5%
2012 2.01%
2011 2.08%
2010 1.1%
2009 0.31%
2008 2.63%
2007 2.3%
2006 1.58%
2005 1.55%
2004 1.67%
2003 1.03%
2002 1.42%
2001 1.98%
2000 1.44%
1999 0.59%
1998 0.91%
1997 1.94%
1996 1.45%
1995 1.71%
1994 2.69%
1993 4.47%
1992 5.06%
1991 4.05%
1990 2.7%
1989 2.78%
1988 1.27%
1987 0.25%
1986 -0.13%
1985 2.07%
1984 2.41%
1983 3.29%
1982 5.24%
1981 6.34%
1980 5.44%
1979 4.04%
1978 2.72%
1977 3.73%
1976 4.25%
1975 5.91%
1974 6.99%
1973 7.03%
1972 5.48%
1971 5.24%
1970 3.45%
1969 1.91%
1968 1.47%
1967 1.8%
1966 3.53%
1965 3.24%
1964 2.34%
1963 2.97%
1962 2.84%
1961 2.29%
1960 1.54%

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

GeoRank.org/economy/germany | CC BY

Over the past 20 years, Germany has had an average annual inflation rate of 2.03%. In 2025, inflation was 2.17%. The bar chart above shows consumer price inflation by year.

Balance of trade

Germany Rank
Current account balance
$228B
2025
2/190
Current account balance, % of GDP
+4.51%
2025
37/190
Goods imports
$1.32T
2025
3/189
Goods exports
$1.53T
2025
3/189
Service imports
$602B
2025
3/189
Service exports
$518B
2025
4/189
Imports of goods and services, % of GDP
38.1%
2025
106/182
Exports of goods and services, % of GDP
40.4%
2025
78/193

Germany top 10 trading partners

Germany's biggest trading partner accounting for 9.86% of all exports and imports is the United States, with a trade balance between the two of +$65.5B: Germany exports $239B worth of goods and services to the United States and imports $173B.

Below is the list of the top 10 trade partners of Germany.

Rank Country Trade value Share of total trade Export to Import from Top export to Top import from
1 United States $412B 9.86% $239B $173B Machinery & equipment Machinery & equipment
2 China $321B 7.69% $114B $207B Machinery & equipment Machinery & equipment
3 Netherlands $279B 6.68% $152B $127B Machinery & equipment Chemicals & pharma
4 France $273B 6.54% $164B $110B Machinery & equipment Machinery & equipment
5 Poland $235B 5.62% $126B $109B Machinery & equipment Machinery & equipment
6 United Kingdom $218B 5.21% $129B $89.1B Machinery & equipment Business & finance services
7 Switzerland $213B 5.1% $125B $88.2B Machinery & equipment Chemicals & pharma
8 Italy $210B 5.03% $107B $103B Machinery & equipment Machinery & equipment
9 Austria $187B 4.47% $101B $85.8B Machinery & equipment Machinery & equipment
10 Czech Republic $147B 3.52% $66.9B $79.8B Machinery & equipment Machinery & equipment

Top 10 exports

Germany Rank
Machinery & equipment $912B 3/193
Chemicals & pharma $307B 2/193
Business & finance services $190B 3/189
Transport & tourism services $143B 5/191
Metals $118B 2/192
Textiles & consumer goods $111B 2/193
IT & IP services $99.9B 5/185
Raw materials & minerals $75.7B 15/193
Processed food, beverages & tobacco $73.5B 1/192
Miscellaneous $40.5B 5/192

Top 10 imports

Germany Rank
Machinery & equipment $648B 3/193
Transport & tourism services $237B 3/191
Chemicals & pharma $225B 2/193
Business & finance services $192B 3/189
Raw materials & minerals $164B 6/193
Textiles & consumer goods $140B 2/193
Metals $108B 3/193
IT & IP services $92B 3/185
Processed food, beverages & tobacco $74.6B 2/193
Raw agricultural goods $53.2B 3/193

Economic freedom indices

Germany Rank
Economic freedom 71.7 30/197
Property rights 95.5 8/182
Government integrity 84.5 14/182
Judicial effectiveness 94.6 14/182
Tax burden 60.5 169/182
Government spending 28.8 164/180
Fiscal health 83.1 70/181
Business freedom 79.8 30/182
Labor freedom 52.2 127/182
Monetary freedom 72.5 105/180
Trade freedom 79.4 40/181
Investment freedom 60 71/181
Financial freedom 70 27/181

Economic freedom by year

1x
Year Index
Economic freedom Judicial effectiveness Tax burden Government spending Fiscal health
2026 71.7 94.6 60.5 28.8 83.1
2025 71.6 93.5 60.5 26.9 81.1
2024 72.1 93 59.3 24.1 71.9
2023 73.7 89.4 60.2 28.3 82.7
2022 76.1 95.3 59.9 34.5 90.4
2021 72.5 69.8 60.4 40.3 92.8
2020 73.5 74.3 60.9 42.2 92.9
2019 73.5 75.4 60.8 42.3 91.8
2018 74.2 78 61.3 41.3 90.8
2017 73.8 79.5 61.9 41.4 89.9
2016 74.4 - 61.5 41.3 -
2015 73.8 - 60.8 40.1 -
2014 73.4 - 61.2 38.2 -
2013 72.8 - 61.8 37.3 -
2012 71 - 61.3 32.2 -
2011 71.8 - 58.5 42.7 -
2010 71.1 - 58.3 41.4 -
2009 70.5 - 58.5 38.2 -
2008 70.6 - 58.4 34 -
2007 70.8 - 61.4 33.7 -
2006 70.8 - 60.8 31.7 -
2005 68.1 - 58.4 28.6 -
2004 69.5 - 56.4 29.4 -
2003 69.7 - 55.7 30 -
2002 70.4 - 53.3 36.5 -
2001 69.5 - 44.7 33.7 -
2000 65.7 - 38.6 28 -
1999 65.6 - 38.3 24.1 -
1998 64.3 - 37.8 26.8 -
1997 67.5 - 37.8 28 -
1996 69.1 - 44 27.1 -
1995 69.8 - 33.2 30.6 -

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

GeoRank.org/economy/germany | CC BY

Germany is ranked 24/174 for economic freedom with a score of 71.7, compared to 25/162 and a score of 70.8 in 2006.

Other economic metrics

Germany Rank
Services, % of GDP
64.5%
2025
49/191
Industry, % of GDP
25.2%
2025
87/194
Agriculture, forestry, and fishing, % of GDP
0.87%
2025
175/193
GNI, Atlas method
$5.03T
2025
3/194
GNI per capita, PPP
$78,140
2025
15/191
Total reserves including gold
$572B
2025
7/177
Net foreign direct investment
$12.9B
2025
11/189
Net inflows of foreign direct investment
$62.6B
2024
6/193
Net outflows of foreign direct investment
$87B
2024
6/193
Poverty at national poverty lines
14.8%
2021
132/176
Gross capital formation, % of GDP
21.9%
2025
106/179

Compare Germany vs other countries

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/germany | CC BY

Help us show the world through your eyes

Share a photo of your city and help others discover what it looks like to live there. Your contribution makes our data come alive.

Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Public Finances in Modern History (1880–1990, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Fiscal Monitor (1991–2025, 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)
  7. United Nations | World Population Prospects (2026, retrieved 2026-07-08)
  8. LivingCost (2026, retrieved 2026-07-08)

Creative Commons Attribution (CC BY) — you’re free to copy, share, remix, adapt, and use even commercially as long as you give appropriate credit and clearly indicate if you made changes. Other sources may be subject to different license terms.

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.