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Economy of Germany vs Malaysia compared: GDP & Debt

Updated on by Georank

Germany has a GDP of $5.05T compared to $472B for Malaysia, ranking 3/197 and 35/197 by economy size, respectively.

Germany has $3.18T in government debt (62.9% of GDP), compared to $334B (70.7% of GDP) in Malaysia.

Germany vs Malaysia GDP by year

Germany
Malaysia
1x
Year GDP, current $
Germany Malaysia
2025 $5,050,922,925,047 $472,193,128,645
2024 $4,685,592,577,805 $422,227,005,429
2023 $4,562,207,532,490 $399,949,418,753
2022 $4,201,021,706,479 $407,830,525,990
2021 $4,355,251,953,411 $373,784,553,030
2020 $3,941,398,957,074 $337,456,163,961
2019 $3,959,894,794,039 $365,177,721,022
2018 $4,055,433,215,302 $358,788,845,713
2017 $3,765,351,626,106 $319,109,094,160
2016 $3,536,787,895,179 $301,256,033,870
2015 $3,425,099,578,746 $301,355,266,965
2014 $3,964,870,735,761 $338,066,095,097
2013 $3,807,023,797,051 $323,276,235,524
2012 $3,596,483,233,406 $314,443,047,642
2011 $3,823,575,803,794 $297,951,668,675
2010 $3,467,093,769,667 $255,017,638,456
2009 $3,478,545,516,684 $202,257,453,037
2008 $3,808,197,720,125 $230,811,614,370
2007 $3,484,056,680,855 $193,549,569,478
2006 $3,046,308,753,671 $162,692,258,307
2005 $2,893,393,187,362 $143,534,405,819
2004 $2,852,317,768,062 $124,749,473,684
2003 $2,534,715,518,349 $110,202,368,421
2002 $2,102,350,798,306 $100,845,526,316
2001 $1,966,381,496,642 $92,783,947,368
2000 $1,966,980,701,145 $93,789,736,842
1999 $2,213,873,468,587 $79,148,421,053
1998 $2,247,760,364,566 $72,167,498,981
1997 $2,218,790,886,533 $100,005,323,302
1996 $2,506,576,553,158 $100,855,393,910
1995 $2,593,053,091,306 $88,705,342,903
1994 $2,215,282,632,277 $74,478,356,958
1993 $2,078,954,217,438 $66,894,966,969
1992 $2,141,377,582,968 $59,167,550,163
1991 $1,875,792,575,133 $49,143,148,094
1990 $1,778,162,195,860 $44,024,585,240
1989 $1,404,092,925,205 $38,847,965,293
1988 $1,406,367,016,372 $35,272,109,220
1987 $1,302,932,318,825 $32,181,210,158
1986 $1,050,092,624,516 $27,734,111,400
1985 $735,218,723,093 $31,199,633,353
1984 $727,767,760,979 $33,942,897,422
1983 $773,507,930,295 $30,347,442,111
1982 $779,421,633,755 $26,804,493,635
1981 $803,404,797,058 $25,004,285,792
1980 $953,772,499,462 $24,488,224,677
1979 $884,574,218,333 $21,213,264,962
1978 $743,182,891,918 $16,358,079,862
1977 $602,698,323,086 $13,139,488,633
1976 $521,658,712,133 $11,050,234,599
1975 $492,434,094,920 $9,298,800,799
1974 $446,934,971,657 $9,496,204,302
1973 $399,833,571,167 $7,662,902,678
1972 $300,899,944,795 $5,043,347,250
1971 $250,900,942,397 $4,244,395,956
1970 $216,629,229,947 $3,864,145,667
1969 $177,733,486,326 $3,664,552,041
1968 $156,527,292,653 $3,330,371,551
1967 $145,100,667,773 $3,188,924,677
1966 $143,304,275,684 $3,143,517,944
1965 $134,774,688,191 $2,956,337,669
1964 $123,330,404,665 $2,674,423,922
1963 $112,232,503,744 $2,510,110,348
1962 $105,895,435,234 $2,001,489,602
1961 $96,558,204,043 $1,901,856,123
1960 $84,619,845,881 $1,916,229,477

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

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

GDP per capita in Germany vs Malaysia by year

Germany
GDP per capita

GDP per capita, PPP
Malaysia
GDP per capita

GDP per capita, PPP
1x
Year Current $
Germany Malaysia
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $60,496 - $13,125 -
2024 $56,104 $73,552 $11,874 $38,779
2023 $54,777 $71,684 $11,386 $36,467
2022 $50,507 $69,049 $11,755 $34,420
2021 $52,349 $62,531 $10,903 $29,823
2020 $47,395 $58,686 $9,958 $27,475
2019 $47,656 $59,271 $10,920 $28,934
2018 $48,916 $56,273 $10,902 $27,794
2017 $45,554 $54,110 $9,863 $26,416
2016 $42,949 $51,570 $9,477 $25,286
2015 $41,930 $48,545 $9,649 $24,526
2014 $48,960 $47,939 $11,013 $24,307
2013 $47,207 $45,889 $10,714 $23,161
2012 $44,718 $44,229 $10,601 $22,639
2011 $47,631 $43,398 $10,217 $21,324
2010 $42,397 $39,726 $8,899 $20,193
2009 $42,472 $37,574 $7,191 $18,923
2008 $46,379 $38,444 $8,372 $19,480
2007 $42,351 $36,914 $7,169 $18,617
2006 $36,980 $34,741 $6,158 $17,426
2005 $35,084 $32,314 $5,556 $16,371
2004 $34,567 $31,753 $4,939 $15,416
2003 $30,711 $30,301 $4,465 $14,387
2002 $25,487 $29,514 $4,184 $13,656
2001 $23,878 $28,674 $3,944 $13,072
2000 $23,926 $27,474 $4,084 $13,027
1999 $26,965 $26,518 $3,528 $11,980
1998 $27,396 $25,446 $3,294 $11,398
1997 $27,047 $24,649 $4,679 $12,469
1996 $30,600 $24,169 $4,837 $11,709
1995 $31,747 $23,631 $4,363 $10,720
1994 $27,202 $22,869 $3,758 $9,806
1993 $25,617 $21,900 $3,462 $9,018
1992 $26,560 $21,746 $3,141 $8,224
1991 $23,443 $21,001 $2,679 $7,583
1990 $22,386 $19,468 $2,469 $6,887
1989 $17,829 - $2,244 -
1988 $17,997 - $2,100 -
1987 $16,739 - $1,977 -
1986 $13,511 - $1,760 -
1985 $9,464 - $2,046 -
1984 $9,347 - $2,300 -
1983 $9,900 - $2,124 -
1982 $9,950 - $1,938 -
1981 $10,246 - $1,866 -
1980 $12,183 - $1,886 -
1979 $11,322 - $1,680 -
1978 $9,517 - $1,327 -
1977 $7,711 - $1,092 -
1976 $6,659 - $940 -
1975 $6,259 - $811 -
1974 $5,660 - $848 -
1973 $5,065 - $701 -
1972 $3,824 - $472 -
1971 $3,204 - $407 -
1970 $2,771 - $380 -
1969 $2,281 - $368 -
1968 $2,025 - $342 -
1967 $1,886 - $335 -
1966 $1,871 - $339 -
1965 $1,774 - $326 -
1964 $1,637 - $303 -
1963 $1,502 - $291.8 -
1962 $1,431 - $238.8 -
1961 $1,316 - $232.9 -
1960 $1,162 - $240.8 -

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

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

Germany's GDP per capita is $60,496, ranking 18/197, compared to $13,125 in Malaysia, ranking 78/197. Adjusted for purchasing power (GDP per capita PPP), Germany ranks 20th at $73,552, while Malaysia ranks 60th at $38,779.

Economic indicators

Germany Malaysia
Gross domestic product
$5.05T
2025
$472B
2025
GDP rank
3/197
2025
35/197
2025
GDP growth
0.24%
2024-2025
5.17%
2024-2025
GDP per capita
$60,496
2025
$13,125
2025
GDP per capita rank
18/197
2025
78/197
2025
GDP per capita, PPP
$73,552
2024
$38,779
2024
GDP per capita PPP rank
20/197
2024
60/197
2024
Government debt
$3.18T
2025
$334B
2025
Debt-to-GDP ratio
62.9%
2025
70.7%
2025
Government debt per person
$38,071
2025
$9,273
2025
Government debt per person rank
21/185
2025
62/185
2025
Average annual personal income after taxes
$40,352
2026
$11,034
2026
Market capitalization of domestic companies
$2.9T
2025
$487B
2025
Number of millionaires
2,648,000
2026
n/a
Number of billionaires
212
2026
19
2026
Income share by richest 10%
26.2%
2022
30.9%
2021
Income share by poorest 10%
2.3%
2022
2.3%
2021
Government expenditure, % of GDP
50.5%
2025
23.4%
2025
Consumer prices inflation
2.17%
2024-2025
1.38%
2024-2025
Central bank interest rate n/a
2.75%
2025
Unemployment rate
3.8%
2025
3.9%
2022
Population
82830814
36600906

Spending and national debt comparison by year

Germany
Spending

Debt
Malaysia
Spending

Debt
1x
Year % of GDP
Germany Malaysia
Government spending Government debt Government spending Government debt
2025 50.5% 62.9% 23.4% 70.7%
2024 49.4% 62.2% 24% 69.8%
2023 48.1% 62.3% 25% 69.7%
2022 48.6% 64.4% 24.6% 65.5%
2021 50.7% 67.9% 24.5% 69.2%
2020 51.1% 68% 25% 67.7%
2019 45.5% 58.7% 23.6% 57.1%
2018 44.7% 60.8% 22.8% 55.6%
2017 44.5% 64% 22% 54.4%
2016 44.7% 68.3% 22.9% 55.8%
2015 44.5% 71.2% 24.7% 57%
2014 44.5% 74.5% 26% 55.4%
2013 45.2% 77.5% 27.8% 55.7%
2012 45.1% 79.8% 28.5% 53.8%
2011 45.3% 78.5% 27.1% 51.9%
2010 48.1% 81% 26.6% 51.2%
2009 48.3% 72.4% 30.9% 50.4%
2008 44.4% 65.2% 26.9% 39.4%
2007 43.5% 63.7% 25.9% 39.3%
2006 45.3% 66.4% 25.6% 39.7%
2005 46.9% 67.1% 24.5% 40.8%
2004 47% 65% 25.9% 42%
2003 48.5% 63.3% 28.1% 41.4%
2002 48.2% 59.8% 27.1% 39.5%
2001 47.7% 58.1% 28.2% 38.1%
2000 48.1% 59.2% 25.6% 32.5%
1999 48.5% 60.3% 24.6% 34.4%
1998 48.3% 59.4% 23.1% 33.6%
1997 48.8% 58.8% 21.2% 29.6%
1996 49.6% 57.7% 22.4% 32.8%
1995 55.2% 54.9% 22.6% 38.2%
1994 48.3% 47.5% 23.3% 43.7%
1993 48.3% 45.1% 24.6% 51.1%
1992 47.4% 41.4% 28.2% 59.1%
1991 46.5% 39% 27.4% 67.3%
1990 44.7% 40.7% 30.5% 74.1%
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 (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1990, retrieved 2026-07-08).

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

In 2025, Germany's government spending was $2.55T, accounting for 50.5% of its GDP, while Malaysia spent $111B, or 23.4% of GDP.

Debt-to-GDP ratio is 62.9% in Germany and 70.7% in Malaysia, ranking 70/185 and 56/185, respectively.

Government deficit by year

Deficit/surplus
Germany

Malaysia
1x
Year Deficit/surplus, % of GDP
Germany Malaysia
2025 -2.67% -3.54%
2024 -2.66% -3.45%
2023 -2.49% -4.11%
2022 -1.91% -4.56%
2021 -3.17% -6.03%
2020 -4.38% -4.9%
2019 1.33% -2.01%
2018 1.88% -2.64%
2017 1.34% -2.41%
2016 1.13% -2.6%
2015 0.91% -2.55%
2014 0.73% -2.63%
2013 0.12% -3.48%
2012 -0.05% -3.1%
2011 -0.84% -3.57%
2010 -4.42% -4.32%
2009 -3.18% -5.88%
2008 -0.26% -3.4%
2007 0.15% -2.57%
2006 -1.76% -2.6%
2005 -3.37% -2.83%
2004 -3.42% -3.35%
2003 -3.83% -4.6%
2002 -4.09% -3.96%
2001 -3.12% -4.36%
2000 -1.71% -6.05%
1999 -1.87% -3%
1998 -2.65% -0.63%
1997 -3.03% 4.84%
1996 -3.64% 3.27%
1995 -9.44% 3.1%
1994 -2.54% 5.45%
1993 -3.11% 3.44%
1992 -2.63% 1.81%
1991 -3.21% 1.6%
1990 -1.94% 0.15%
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 (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/germany/malaysia | 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 Malaysia's deficit of $16.7B, or 3.54% of GDP.

Over the past 36 years, Germany recorded a fiscal deficit in 28 of those years, while Malaysia ran a deficit in 28 years. On average, Germany posted an annual deficit equal to 2.05% of GDP, compared to deficit of 2.1% of GDP for Malaysia.

Inflation comparison by year

Inflation
Germany

Malaysia
1x
Year Consumer prices inflation
Germany Malaysia
2025 2.17% 1.38%
2024 2.26% 1.83%
2023 5.95% 2.49%
2022 6.87% 3.38%
2021 3.07% 2.48%
2020 0.14% -1.14%
2019 1.45% 0.66%
2018 1.73% 0.88%
2017 1.51% 3.87%
2016 0.49% 2.09%
2015 0.51% 2.1%
2014 0.91% 3.14%
2013 1.5% 2.11%
2012 2.01% 1.66%
2011 2.08% 3.17%
2010 1.1% 1.62%
2009 0.31% 0.58%
2008 2.63% 5.44%
2007 2.3% 2.03%
2006 1.58% 3.61%
2005 1.55% 2.98%
2004 1.67% 1.42%
2003 1.03% 1.09%
2002 1.42% 1.81%
2001 1.98% 1.42%
2000 1.44% 1.53%
1999 0.59% 2.74%
1998 0.91% 5.27%
1997 1.94% 2.66%

Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08).

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

Over the past 29 years, Germany has recorded an average annual inflation rate of 1.83%, compared with 2.22% in Malaysia. In 2025, inflation was 2.17% in Germany and 1.38% in Malaysia.

Top exports between countries

Germany
Export category Export value
Machinery & equipment $4.9B
Chemicals & pharma $683M
IT & IP services $345M
Metals $309M
Business & finance services $303M
Transport & tourism services $294M
Textiles & consumer goods $180M
Raw materials & minerals $173M
Wood & paper products $92.1M
Processed food, beverages & tobacco $77.5M
Malaysia
Export category Export value
Machinery & equipment $6.7B
Business & finance services $362M
Raw materials & minerals $343M
Transport & tourism services $262M
Chemicals & pharma $259M
Textiles & consumer goods $154M
Metals $108M
IT & IP services $96.7M
Processed food, beverages & tobacco $90.7M
Manufacturing & construction services $82.7M

Balance of trade

Germany Malaysia
Current account balance
$228B
2025
$7.15B
2024
Current account balance ranking
2/190
2025
29/190
2024
Current account balance, % of GDP
+4.51%
2025
+1.69%
2024
Goods imports
$1.32T
2025
$223B
2024
Goods exports
$1.53T
2025
$248B
2024
Service imports
$602B
2025
$56.4B
2024
Service exports
$518B
2025
$53.4B
2024
Imports of goods and services, % of GDP
38.1%
2025
65.4%
2025
Exports of goods and services, % of GDP
40.4%
2025
71%
2025

Economic freedom indices

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

Germany Malaysia
Economic freedom 71.7 68
Economic freedom ranking 30/197 51/197
Property rights 95.5 62.7
Government integrity 84.5 52.9
Judicial effectiveness 94.6 63.4
Tax burden 60.5 83.5
Government spending 28.8 82
Fiscal health 83.1 62.5
Business freedom 79.8 79.6
Labor freedom 52.2 55.4
Monetary freedom 72.5 80.8
Trade freedom 79.4 83
Investment freedom 60 60
Financial freedom 70 50

Economic freedom comparison by year

Germany
Malaysia
1x
Year Economic freedom index
Germany Malaysia
2026 71.7 68
2025 71.6 67.1
2024 72.1 65.7
2023 73.7 67.3
2022 76.1 68.1
2021 72.5 74.4
2020 73.5 74.7
2019 73.5 74
2018 74.2 74.5
2017 73.8 73.8
2016 74.4 71.5
2015 73.8 70.8
2014 73.4 69.6
2013 72.8 66.1
2012 71 66.4
2011 71.8 66.3
2010 71.1 64.8
2009 70.5 64.6
2008 70.6 63.9
2007 70.8 63.8
2006 70.8 61.6
2005 68.1 61.9
2004 69.5 59.9
2003 69.7 61.1
2002 70.4 60.1
2001 69.5 60.2
2000 65.7 66
1999 65.6 68.9
1998 64.3 68.2
1997 67.5 66.8
1996 69.1 69.9
1995 69.8 71.9

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

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

The Economic Freedom Index for Germany is 71.7, ranking 30/197, compared to 68 for Malaysia, ranking 51/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Germany Malaysia
Services, % of GDP
64.5%
2025
54.8%
2025
Industry, % of GDP
25.2%
2025
35.7%
2025
Agriculture, forestry, and fishing, % of GDP
0.87%
2025
8.22%
2025
GNI, Atlas method
$5.03T
2025
$445B
2025
GNI per capita, PPP
$78,140
2025
$40,070
2025
Total reserves including gold
$572B
2025
$126B
2025
Total reserves ranking
7/177
2025
25/177
2025
Net foreign direct investment
$12.9B
2025
-$2.55B
2024
Net inflows of foreign direct investment
$62.6B
2024
$15.6B
2024
Net outflows of foreign direct investment
$87B
2024
$13B
2024
Poverty at national poverty lines
14.8%
2021
5.1%
2023
Gross capital formation, % of GDP
21.9%
2025
20.5%
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/malaysia | 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 (1990–2025, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Public Finances in Modern History (1880–1990, 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 (2023–2025, 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.