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Economy of Germany vs Kyrgyzstan compared: GDP & Debt

Updated on by Georank

Germany has a GDP of $5.05T compared to $22.6B for Kyrgyzstan, ranking 3/197 and 126/197 by economy size, respectively.

Germany has $3.18T in government debt (62.9% of GDP), compared to $8.15B (36% of GDP) in Kyrgyzstan.

Germany vs Kyrgyzstan GDP by year

Germany
Kyrgyzstan
1x
Year GDP, current $
Germany Kyrgyzstan
2025 $5,050,922,925,047 $22,623,752,095
2024 $4,685,592,577,805 $18,161,630,699
2023 $4,562,207,532,490 $15,180,842,369
2022 $4,201,021,706,479 $12,134,931,018
2021 $4,355,251,953,411 $9,249,133,946
2020 $3,941,398,957,074 $8,270,468,614
2019 $3,959,894,794,039 $9,371,275,264
2018 $4,055,433,215,302 $8,271,106,235
2017 $3,765,351,626,106 $7,702,938,379
2016 $3,536,787,895,179 $6,813,095,379
2015 $3,425,099,578,746 $6,678,177,512
2014 $3,964,870,735,761 $7,468,102,413
2013 $3,807,023,797,051 $7,335,033,801
2012 $3,596,483,233,406 $6,605,142,884
2011 $3,823,575,803,794 $6,197,765,984
2010 $3,467,093,769,667 $4,794,361,863
2009 $3,478,545,516,684 $4,690,061,381
2008 $3,808,197,720,125 $5,139,958,909
2007 $3,484,056,680,855 $3,802,570,553
2006 $3,046,308,753,671 $2,834,168,889
2005 $2,893,393,187,362 $2,460,246,766
2004 $2,852,317,768,062 $2,211,534,585
2003 $2,534,715,518,349 $1,919,008,090
2002 $2,102,350,798,306 $1,605,643,105
2001 $1,966,381,496,642 $1,525,116,370
2000 $1,966,980,701,145 $1,369,688,498
1999 $2,213,873,468,587 $1,249,061,487
1998 $2,247,760,364,566 $1,645,963,750
1997 $2,218,790,886,533 $1,767,864,036
1996 $2,506,576,553,158 $1,827,570,586
1995 $2,593,053,091,306 $1,661,147,035
1994 $2,215,282,632,277 $1,681,780,847
1993 $2,078,954,217,438 $2,026,019,253
1992 $2,141,377,582,968 $2,315,346,943
1991 $1,875,792,575,133 $2,542,256,424
1990 $1,778,162,195,860 $2,660,202,623
1989 $1,404,092,925,205 -
1988 $1,406,367,016,372 -
1987 $1,302,932,318,825 -
1986 $1,050,092,624,516 -
1985 $735,218,723,093 -
1984 $727,767,760,979 -
1983 $773,507,930,295 -
1982 $779,421,633,755 -
1981 $803,404,797,058 -
1980 $953,772,499,462 -
1979 $884,574,218,333 -
1978 $743,182,891,918 -
1977 $602,698,323,086 -
1976 $521,658,712,133 -
1975 $492,434,094,920 -
1974 $446,934,971,657 -
1973 $399,833,571,167 -
1972 $300,899,944,795 -
1971 $250,900,942,397 -
1970 $216,629,229,947 -
1969 $177,733,486,326 -
1968 $156,527,292,653 -
1967 $145,100,667,773 -
1966 $143,304,275,684 -
1965 $134,774,688,191 -
1964 $123,330,404,665 -
1963 $112,232,503,744 -
1962 $105,895,435,234 -
1961 $96,558,204,043 -
1960 $84,619,845,881 -

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

GeoRank.org/economy/germany/kyrgyzstan | CC BY

GDP per capita in Germany vs Kyrgyzstan by year

Germany
GDP per capita

GDP per capita, PPP
Kyrgyzstan
GDP per capita

GDP per capita, PPP
1x
Year Current $
Germany Kyrgyzstan
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $60,496 - $3,081 -
2024 $56,104 $73,552 $2,515 $8,012
2023 $54,777 $71,684 $2,138 $7,298
2022 $50,507 $69,049 $1,740 $6,578
2021 $52,349 $62,531 $1,350 $5,736
2020 $47,395 $58,686 $1,230 $5,179
2019 $47,656 $59,271 $1,422 $5,304
2018 $48,916 $56,273 $1,284 $4,778
2017 $45,554 $54,110 $1,221 $4,954
2016 $42,949 $51,570 $1,103 $4,604
2015 $41,930 $48,545 $1,106 $4,153
2014 $48,960 $47,939 $1,265 $4,228
2013 $47,207 $45,889 $1,270 $4,001
2012 $44,718 $44,229 $1,169 $3,589
2011 $47,631 $43,398 $1,117 $3,278
2010 $42,397 $39,726 $877 $3,076
2009 $42,472 $37,574 $870 $3,097
2008 $46,379 $38,444 $966 $3,031
2007 $42,351 $36,914 $722 $2,770
2006 $36,980 $34,741 $543 $2,508
2005 $35,084 $32,314 $477 $2,386
2004 $34,567 $31,753 $433 $2,343
2003 $30,711 $30,301 $381 $2,158
2002 $25,487 $29,514 $322 $1,998
2001 $23,878 $28,674 $308 $1,986
2000 $23,926 $27,474 $279.6 $1,862
1999 $26,965 $26,518 $258 $1,747
1998 $27,396 $25,446 $345 $1,687
1997 $27,047 $24,649 $376 $1,659
1996 $30,600 $24,169 $395 $1,505
1995 $31,747 $23,631 $364 $1,401
1994 $27,202 $22,869 $372 $1,466
1993 $25,617 $21,900 $449 $1,795
1992 $26,560 $21,746 $513 $2,075
1991 $23,443 $21,001 $570 $2,382
1990 $22,386 $19,468 $606 $2,544
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/kyrgyzstan | CC BY

Germany's GDP per capita is $60,496, ranking 18/197, compared to $3,081 in Kyrgyzstan, ranking 144/197. Adjusted for purchasing power (GDP per capita PPP), Germany ranks 20th at $73,552, while Kyrgyzstan ranks 141st at $8,012.

Economic indicators

Germany Kyrgyzstan
Gross domestic product
$5.05T
2025
$22.6B
2025
GDP rank
3/197
2025
126/197
2025
GDP growth
0.24%
2024-2025
11.1%
2024-2025
GDP per capita
$60,496
2025
$3,081
2025
GDP per capita rank
18/197
2025
144/197
2025
GDP per capita, PPP
$73,552
2024
$8,012
2024
GDP per capita PPP rank
20/197
2024
141/197
2024
Government debt
$3.18T
2025
$8.15B
2025
Debt-to-GDP ratio
62.9%
2025
36%
2025
Government debt per person
$38,071
2025
$1,110
2025
Government debt per person rank
21/185
2025
141/185
2025
Average annual personal income after taxes
$40,352
2026
$2,331
2026
Market capitalization of domestic companies
$2.9T
2025
n/a
Number of millionaires
2,648,000
2026
n/a
Number of billionaires
212
2026
n/a
Income share by richest 10%
26.2%
2022
22.9%
2024
Income share by poorest 10%
2.3%
2022
4.2%
2024
Government expenditure, % of GDP
50.5%
2025
38.4%
2025
Consumer prices inflation
2.17%
2024-2025
8.2%
2024-2025
Central bank interest rate n/a
12%
2026
Unemployment rate
3.8%
2025
3.5%
2023
Population
82830814
7505771

Spending and national debt comparison by year

Germany
Spending

Debt
Kyrgyzstan
Spending

Debt
1x
Year % of GDP
Germany Kyrgyzstan
Government spending Government debt Government spending Government debt
2025 50.5% 62.9% 38.4% 36%
2024 49.4% 62.2% 32.5% 36.2%
2023 48.1% 62.3% 32.9% 42%
2022 48.6% 64.4% 35% 46.8%
2021 50.7% 67.9% 32.1% 56.2%
2020 51.1% 68% 32.1% 63.6%
2019 45.5% 58.7% 30.8% 48.8%
2018 44.7% 60.8% 33.1% 54.8%
2017 44.5% 64% 37% 58.8%
2016 44.7% 68.3% 38.9% 59.1%
2015 44.5% 71.2% 38.1% 67.1%
2014 44.5% 74.5% 38.5% 53.6%
2013 45.2% 77.5% 38.1% 47.1%
2012 45.1% 79.8% 40.6% 50.5%
2011 45.3% 78.5% 37.4% 50.1%
2010 48.1% 81% 37.1% 59.7%
2009 48.3% 72.4% 32.5% 58.5%
2008 44.4% 65.2% 27.9% 49%
2007 43.5% 63.7% 29.6% 57.7%
2006 45.3% 66.4% 29.1% 73.4%
2005 46.9% 67.1% 29.1% 85.7%
2004 47% 65% 28.5% 92.7%
2003 48.5% 63.3% 28.1% 108.2%
2002 48.2% 59.8% 29.3% 107.9%
2001 47.7% 58.1% 28.1% 108.2%
2000 48.1% 59.2% 30.2% 123.3%
1999 48.5% 60.3% 35.9% 119.6%
1998 48.3% 59.4% 35.9% 85.1%
1997 48.8% 58.8% 31.2% 64.8%
1996 49.6% 57.7% 28.6% 57.7%
1995 55.2% 54.9% 37.9% 52.4%
1994 48.3% 47.5% - -
1993 48.3% 45.1% - -
1992 47.4% 41.4% - -
1991 46.5% 39% - -
1990 44.7% 40.7% - -
1989 44.3% 39.2% - -
1988 45.6% 40.5% - -
1987 46% 40.1% - -
1986 45.7% 39.1% - -
1985 46.6% 39.2% - -
1984 47.2% 38.7% - -
1983 47.9% 38% - -
1982 49.1% 36.4% - -
1981 49% 33.6% - -
1980 48.2% 30.1% - -
1979 47.4% 28.2% - -
1978 47.7% 27.4% - -
1977 49% 26% - -
1976 49.4% 25.1% - -
1975 50.3% 23.7% - -
1974 46% 18.5% - -
1973 42.4% 17.3% - -
1972 41.8% 18% - -
1971 40.9% 17.7% - -
1970 39.5% 17.7% - -
1969 29.7% 20.3% - -
1968 28.5% 22.5% - -
1967 28.8% 22.5% - -
1966 28.3% 19.8% - -
1965 28.4% 18.7% - -
1964 29% 18.2% - -
1963 29.1% 18.1% - -
1962 29.2% 17.6% - -
1961 28.8% 18.7% - -
1960 22.9% 18.4% - -

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1991–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1999, retrieved 2026-07-08).

GeoRank.org/economy/germany/kyrgyzstan | CC BY

In 2025, Germany's government spending was $2.55T, accounting for 50.5% of its GDP, while Kyrgyzstan spent $8.69B, or 38.4% of GDP.

Debt-to-GDP ratio is 62.9% in Germany and 36% in Kyrgyzstan, ranking 70/185 and 141/185, respectively.

Government deficit by year

Deficit/surplus
Germany

Kyrgyzstan
1x
Year Deficit/surplus, % of GDP
Germany Kyrgyzstan
2025 -2.67% -0.07%
2024 -2.66% 1.71%
2023 -2.49% 1.59%
2022 -1.91% -0.29%
2021 -3.17% -0.71%
2020 -4.38% -3.06%
2019 1.33% -0.07%
2018 1.88% -0.59%
2017 1.34% -3.73%
2016 1.13% -5.79%
2015 0.91% -2.52%
2014 0.73% -3.07%
2013 0.12% -3.7%
2012 -0.05% -5.86%
2011 -0.84% -4.7%
2010 -4.42% -5.95%
2009 -3.18% 0.38%
2008 -0.26% 1.92%
2007 0.15% 1.28%
2006 -1.76% -2.1%
2005 -3.37% -3.79%
2004 -3.42% -4.89%
2003 -3.83% -5.17%
2002 -4.09% -5.9%
2001 -3.12% -6.75%
2000 -1.71% -10.7%
1999 -1.87% -13.5%
1998 -2.65% -12%
1997 -3.03% -9.31%
1996 -3.64% -9.1%
1995 -9.44% -13.5%
1994 -2.54% -
1993 -3.11% -
1992 -2.63% -
1991 -3.21% -
1990 -1.94% -
1989 0.08% -
1988 -2.02% -
1987 -1.85% -
1986 -1.18% -
1985 -1.18% -
1984 -2.04% -
1983 -2.95% -
1982 -3.56% -
1981 -4.03% -
1980 -3.02% -
1979 -2.71% -
1978 -2.62% -
1977 -2.56% -
1976 -3.5% -
1975 -5.78% -
1974 -1.69% -
1973 1.14% -
1972 -0.37% -
1971 0.16% -
1970 0.53% -
1969 -0.43% -
1968 1.39% -
1967 2.73% -
1966 1.76% -
1965 2.26% -
1964 1.49% -
1963 1.43% -
1962 0.49% -
1961 -0.12% -
1960 -0.34% -
1959 0.77% -
1958 1.77% -
1957 1.99% -
1956 0.59% -
1955 -1.41% -
1954 -0.37% -
1953 -0.13% -
1952 0% -
1951 1.15% -
1950 1.81% -
1949 - -
1948 - -
1947 - -
1946 - -
1945 - -
1944 - -
1943 - -
1942 - -
1941 - -
1940 - -
1939 - -
1938 - -
1937 - -
1936 - -
1935 - -
1934 -0.64% -
1933 -0.43% -
1932 -1.11% -
1931 -1.03% -
1930 -1.52% -
1929 -0.9% -
1928 -1.47% -
1927 -0.44% -
1926 -1.3% -
1925 0.34% -
1924 - -
1923 - -
1922 - -
1921 - -
1920 - -
1919 - -
1918 - -
1917 - -
1916 - -
1915 - -
1914 - -
1913 0.007% -
1912 -0.26% -
1911 0.06% -
1910 -0.21% -
1909 0.11% -
1908 -0.11% -
1907 -0.14% -
1906 0.76% -
1905 1.21% -
1904 0.41% -
1903 0.88% -
1902 0.08% -
1901 0.91% -
1900 0.27% -
1899 0.6% -
1898 0.47% -
1897 0.39% -
1896 0.63% -
1895 0.47% -
1894 0.44% -
1893 0.42% -
1892 -0.24% -
1891 1.18% -
1890 0.12% -
1889 1.16% -
1888 0.62% -
1887 0.88% -
1886 0.23% -
1885 0.21% -
1884 0.23% -
1883 0.55% -
1882 0.41% -
1881 0.12% -
1880 -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/kyrgyzstan | CC BY

In 2025, Germany's government deficit, the difference between spending and revenue, was $135B, equivalent to 2.67% of GDP. This compares to Kyrgyzstan's deficit of $15.1M, or 0.07% of GDP.

Over the past 31 years, Germany recorded a fiscal deficit in 23 of those years, while Kyrgyzstan ran a deficit in 26 years. On average, Germany posted an annual deficit equal to 1.95% of GDP, compared to deficit of 4.19% of GDP for Kyrgyzstan.

Inflation comparison by year

Inflation
Germany

Kyrgyzstan
1x
Year Consumer prices inflation
Germany Kyrgyzstan
2025 2.17% 8.2%
2024 2.26% 5%
2023 5.95% 10.8%
2022 6.87% 13.9%
2021 3.07% 11.9%
2020 0.14% 6.3%
2019 1.45% 1.1%
2018 1.73% 1.5%
2017 1.51% 3.2%
2016 0.49% 0.4%
2015 0.51% 6.5%
2014 0.91% 7.5%
2013 1.5% 6.6%
2012 2.01% 2.8%
2011 2.08% 16.6%
2010 1.1% 8%
2009 0.31% 6.8%
2008 2.63% 24.5%
2007 2.3% 10.2%
2006 1.58% 5.6%
2005 1.55% 4.3%
2004 1.67% 4.1%
2003 1.03% 3%
2002 1.42% 2.1%
2001 1.98% 6.9%
2000 1.44% 19.7%
1999 0.59% 35.9%
1998 0.91% 10.5%
1997 1.94% 23.4%

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/germany/kyrgyzstan | CC BY

Over the past 29 years, Germany has recorded an average annual inflation rate of 1.83%, compared with 9.22% in Kyrgyzstan. In 2025, inflation was 2.17% in Germany and 8.2% in Kyrgyzstan.

Top exports between countries

Germany
Export category Export value
Machinery & equipment $297M
Chemicals & pharma $75.2M
Textiles & consumer goods $36.7M
Raw materials & minerals $27.6M
Processed food, beverages & tobacco $18M
Metals $13.9M
Wood & paper products $10.4M
Raw agricultural goods $5.53M
Precious metals & jewellery $3.41M
Miscellaneous $2.56M
Kyrgyzstan
Export category Export value
Raw agricultural goods $2.77M
Chemicals & pharma $2.45M
Metals $1.34M
Machinery & equipment $857K
Textiles & consumer goods $751K
Miscellaneous $500K
Processed food, beverages & tobacco $408K
Precious metals & jewellery $374K
Raw materials & minerals $51K
Animal & marine products $36K

Balance of trade

Germany Kyrgyzstan
Current account balance
$228B
2025
-$4.11B
2024
Current account balance ranking
2/190
2025
159/190
2024
Current account balance, % of GDP
+4.51%
2025
-22.6%
2024
Goods imports
$1.32T
2025
$11.7B
2024
Goods exports
$1.53T
2025
$5.14B
2024
Service imports
$602B
2025
$3.43B
2024
Service exports
$518B
2025
$3.32B
2024
Imports of goods and services, % of GDP
38.1%
2025
65.6%
2025
Exports of goods and services, % of GDP
40.4%
2025
26.8%
2025

Economic freedom indices

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

Germany Kyrgyzstan
Economic freedom 71.7 56
Economic freedom ranking 30/197 126/197
Property rights 95.5 22.9
Government integrity 84.5 23.9
Judicial effectiveness 94.6 8.3
Tax burden 60.5 93.2
Government spending 28.8 65.6
Fiscal health 83.1 97.2
Business freedom 79.8 58.2
Labor freedom 52.2 52.3
Monetary freedom 72.5 68
Trade freedom 79.4 72.6
Investment freedom 60 60
Financial freedom 70 50

Economic freedom comparison by year

Germany
Kyrgyzstan
1x
Year Economic freedom index
Germany Kyrgyzstan
2026 71.7 56
2025 71.6 55.6
2024 72.1 55.2
2023 73.7 55.8
2022 76.1 55.8
2021 72.5 63.7
2020 73.5 62.9
2019 73.5 62.3
2018 74.2 62.8
2017 73.8 61.1
2016 74.4 59.6
2015 73.8 61.3
2014 73.4 61.1
2013 72.8 59.6
2012 71 60.2
2011 71.8 61.1
2010 71.1 61.3
2009 70.5 61.8
2008 70.6 61.1
2007 70.8 60.2
2006 70.8 61
2005 68.1 56.6
2004 69.5 58
2003 69.7 56.8
2002 70.4 51.7
2001 69.5 53.7
2000 65.7 55.7
1999 65.6 54.8
1998 64.3 51.8
1997 67.5 -
1996 69.1 -
1995 69.8 -

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

GeoRank.org/economy/germany/kyrgyzstan | CC BY

The Economic Freedom Index for Germany is 71.7, ranking 30/197, compared to 56 for Kyrgyzstan, ranking 126/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Germany Kyrgyzstan
Services, % of GDP
64.5%
2025
51.2%
2025
Industry, % of GDP
25.2%
2025
26.5%
2025
Agriculture, forestry, and fishing, % of GDP
0.87%
2025
8%
2025
GNI, Atlas method
$5.03T
2025
$20.6B
2025
GNI per capita, PPP
$78,140
2025
$9,120
2025
Total reserves including gold
$572B
2025
$5.09B
2024
Total reserves ranking
7/177
2025
103/177
2024
Net foreign direct investment
$12.9B
2025
-$238M
2024
Net inflows of foreign direct investment
$62.6B
2024
$255M
2024
Net outflows of foreign direct investment
$87B
2024
$17.4M
2024
Servicing debt to the IMF, % of GNI n/a
4.56%
2024
Poverty at national poverty lines
14.8%
2021
25.7%
2024
Gross capital formation, % of GDP
21.9%
2025
28%
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/germany/kyrgyzstan | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Fiscal Monitor (1991–2025, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Public Finances in Modern History (1880–1999, 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 (2025, retrieved 2026-07-08)
  7. United Nations | World Population Prospects (2026, retrieved 2026-07-08)
  8. 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.