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Economy of Germany vs Saudi Arabia compared: GDP & Debt

Updated on by Georank

Germany has a GDP of $5.05T compared to $1.28T for Saudi Arabia, ranking 3/197 and 19/197 by economy size, respectively.

Germany has $3.18T in government debt (62.9% of GDP), compared to $405B (31.7% of GDP) in Saudi Arabia.

Germany vs Saudi Arabia GDP by year

Germany
Saudi Arabia
1x
Year GDP, current $
Germany Saudi Arabia
2025 $5,050,922,925,047 $1,276,942,933,333
2024 $4,685,592,577,805 $1,254,140,800,000
2023 $4,562,207,532,490 $1,218,584,800,000
2022 $4,201,021,706,479 $1,239,075,200,000
2021 $4,355,251,953,411 $982,661,066,667
2020 $3,941,398,957,074 $767,951,200,000
2019 $3,959,894,794,039 $888,890,133,333
2018 $4,055,433,215,302 $886,564,800,000
2017 $3,765,351,626,106 $741,266,133,333
2016 $3,536,787,895,179 $689,279,466,667
2015 $3,425,099,578,746 $693,414,400,000
2014 $3,964,870,735,761 $787,153,066,667
2013 $3,807,023,797,051 $769,755,733,333
2012 $3,596,483,233,406 $751,921,333,333
2011 $3,823,575,803,794 $680,660,800,000
2010 $3,467,093,769,667 $528,207,466,667
2009 $3,478,545,516,684 $429,097,866,667
2008 $3,808,197,720,125 $519,796,800,000
2007 $3,484,056,680,855 $415,964,509,673
2006 $3,046,308,753,671 $376,900,133,511
2005 $2,893,393,187,362 $328,459,608,764
2004 $2,852,317,768,062 $258,742,133,333
2003 $2,534,715,518,349 $215,807,733,333
2002 $2,102,350,798,306 $189,605,866,667
2001 $1,966,381,496,642 $184,137,600,000
2000 $1,966,980,701,145 $189,514,933,333
1999 $2,213,873,468,587 $161,717,066,667
1998 $2,247,760,364,566 $146,775,466,667
1997 $2,218,790,886,533 $165,963,684,913
1996 $2,506,576,553,158 $158,662,483,311
1995 $2,593,053,091,306 $143,343,124,166
1994 $2,215,282,632,277 $135,174,899,866
1993 $2,078,954,217,438 $132,967,957,276
1992 $2,141,377,582,968 $137,087,850,467
1991 $1,875,792,575,133 $132,223,230,975
1990 $1,778,162,195,860 $117,630,173,565
1989 $1,404,092,925,205 $95,344,459,279
1988 $1,406,367,016,372 $88,256,074,766
1987 $1,302,932,318,825 $85,695,861,148
1986 $1,050,092,624,516 $86,961,922,765
1985 $735,218,723,093 $103,897,846,494
1984 $727,767,760,979 $119,624,858,116
1983 $773,507,930,295 $129,171,635,311
1982 $779,421,633,755 $153,240,313,858
1981 $803,404,797,058 $184,291,360,139
1980 $953,772,499,462 $164,539,660,725
1979 $884,574,218,333 $111,858,444,786
1978 $743,182,891,918 $80,266,516,687
1977 $602,698,323,086 $74,188,986,586
1976 $521,658,712,133 $64,005,665,722
1975 $492,434,094,920 $46,773,208,643
1974 $446,934,971,657 $45,412,957,746
1973 $399,833,571,167 $14,947,435,499
1972 $300,899,944,795 $9,664,267,087
1971 $250,900,942,397 $7,184,806,909
1970 $216,629,229,947 $5,377,333,333
1969 $177,733,486,326 $4,485,777,644
1968 $156,527,292,653 $4,187,777,711
1967 $145,100,667,773 $3,257,022,223
1966 $143,304,275,684 $2,920,555,557
1965 $134,774,688,191 $2,647,955,558
1964 $123,330,404,665 $2,371,808,713
1963 $112,232,503,744 $2,207,393,172
1962 $105,895,435,234 $2,130,606,532
1961 $96,558,204,043 $1,920,811,284
1960 $84,619,845,881 $1,748,124,064

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

GeoRank.org/economy/germany/saudi-arabia | CC BY

GDP per capita in Germany vs Saudi Arabia by year

Germany
GDP per capita

GDP per capita, PPP
Saudi Arabia
GDP per capita

GDP per capita, PPP
1x
Year Current $
Germany Saudi Arabia
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $60,496 - $34,537 -
2024 $56,104 $73,552 $35,528 $71,375
2023 $54,777 $71,684 $36,157 $71,565
2022 $50,507 $69,049 $38,510 $71,968
2021 $52,349 $62,531 $31,921 $62,690
2020 $47,395 $58,686 $24,339 $47,518
2019 $47,656 $59,271 $29,567 $59,560
2018 $48,916 $56,273 $29,360 $59,378
2017 $45,554 $54,110 $23,929 $53,120
2016 $42,949 $51,570 $22,268 $49,937
2015 $41,930 $48,545 $23,256 $53,931
2014 $48,960 $47,939 $27,805 $62,578
2013 $47,207 $45,889 $27,865 $62,203
2012 $44,718 $44,229 $28,733 $65,034
2011 $47,631 $43,398 $27,127 $64,125
2010 $42,397 $39,726 $22,028 $58,829
2009 $42,472 $37,574 $17,718 $54,787
2008 $46,379 $38,444 $22,320 $57,236
2007 $42,351 $36,914 $18,596 $55,030
2006 $36,980 $34,741 $17,564 $54,639
2005 $35,084 $32,314 $15,976 $53,548
2004 $34,567 $31,753 $13,154 $51,225
2003 $30,711 $30,301 $11,487 $48,078
2002 $25,487 $29,514 $10,586 $45,466
2001 $23,878 $28,674 $10,805 $47,381
2000 $23,926 $27,474 $11,715 $48,644
1999 $26,965 $26,518 $10,452 $47,495
1998 $27,396 $25,446 $9,836 $48,867
1997 $27,047 $24,649 $11,545 $48,796
1996 $30,600 $24,169 $11,472 $48,569
1995 $31,747 $23,631 $10,786 $48,052
1994 $27,202 $22,869 $10,602 $48,904
1993 $25,617 $21,900 $10,885 $49,503
1992 $26,560 $21,746 $11,730 $50,355
1991 $23,443 $21,001 $11,847 $49,295
1990 $22,386 $19,468 $11,055 $46,214
1989 $17,829 - $9,414 -
1988 $17,997 - $9,165 -
1987 $16,739 - $9,386 -
1986 $13,511 - $10,078 -
1985 $9,464 - $12,745 -
1984 $9,347 - $15,541 -
1983 $9,900 - $17,810 -
1982 $9,950 - $22,454 -
1981 $10,246 - $28,703 -
1980 $12,183 - $27,206 -
1979 $11,322 - $19,612 -
1978 $9,517 - $14,914 -
1977 $7,711 - $14,595 -
1976 $6,659 - $13,313 -
1975 $6,259 - $10,266 -
1974 $5,660 - $10,503 -
1973 $5,065 - $3,640 -
1972 $3,824 - $2,474 -
1971 $3,204 - $1,929 -
1970 $2,771 - $1,509 -
1969 $2,281 - $1,313 -
1968 $2,025 - $1,276 -
1967 $1,886 - $1,032 -
1966 $1,871 - $961 -
1965 $1,774 - $904 -
1964 $1,637 - $840 -
1963 $1,502 - $812 -
1962 $1,431 - $813 -
1961 $1,316 - $760 -
1960 $1,162 - $718 -

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

GeoRank.org/economy/germany/saudi-arabia | CC BY

Germany's GDP per capita is $60,496, ranking 18/197, compared to $34,537 in Saudi Arabia, ranking 36/197. Adjusted for purchasing power (GDP per capita PPP), Germany ranks 20th at $73,552, while Saudi Arabia ranks 24th at $71,375.

Economic indicators

Germany Saudi Arabia
Gross domestic product
$5.05T
2025
$1.28T
2025
GDP rank
3/197
2025
19/197
2025
GDP growth
0.24%
2024-2025
4.5%
2024-2025
GDP per capita
$60,496
2025
$34,537
2025
GDP per capita rank
18/197
2025
36/197
2025
GDP per capita, PPP
$73,552
2024
$71,375
2024
GDP per capita PPP rank
20/197
2024
24/197
2024
Government debt
$3.18T
2025
$405B
2025
Debt-to-GDP ratio
62.9%
2025
31.7%
2025
Government debt per person
$38,071
2025
$10,956
2025
Government debt per person rank
21/185
2025
57/185
2025
Average annual personal income after taxes
$40,352
2026
$22,010
2026
Market capitalization of domestic companies
$2.9T
2025
$2.36T
2025
Number of millionaires
2,648,000
2026
348,000
2026
Number of billionaires
212
2026
15
2026
Income share by richest 10%
26.2%
2022
n/a
Income share by poorest 10%
2.3%
2022
n/a
Government expenditure, % of GDP
50.5%
2025
29%
2025
Consumer prices inflation
2.17%
2024-2025
2.08%
2024-2025
Central bank interest rate n/a
4.25%
2025
Unemployment rate
3.8%
2025
3.24%
2025
Population
82830814
37955120

Spending and national debt comparison by year

Germany
Spending

Debt
Saudi Arabia
Spending

Debt
1x
Year % of GDP
Germany Saudi Arabia
Government spending Government debt Government spending Government debt
2025 50.5% 62.9% 29% 31.7%
2024 49.4% 62.2% 29.2% 25.9%
2023 48.1% 62.3% 28.3% 23%
2022 48.6% 64.4% 25.3% 21.3%
2021 50.7% 67.9% 28.2% 25.5%
2020 51.1% 68% 37.4% 29.7%
2019 45.5% 58.7% 31.8% 20.3%
2018 44.7% 60.8% 32.4% 16.8%
2017 44.5% 64% 30.9% 15.9%
2016 44.7% 68.3% 33.3% 12.2%
2015 44.5% 71.2% 38.5% 5.47%
2014 44.5% 74.5% 38.6% 1.5%
2013 45.2% 77.5% 34.5% 2.08%
2012 45.1% 79.8% 32.5% 2.97%
2011 45.3% 78.5% 32.4% 5.31%
2010 48.1% 81% 33% 8.43%
2009 48.3% 72.4% 37.1% 14%
2008 44.4% 65.2% 26.7% 12.1%
2007 43.5% 63.7% 29.5% 17.1%
2006 45.3% 66.4% 27.3% 25.8%
2005 46.9% 67.1% 28.2% 37.3%
2004 47% 65% 31.1% 62.9%
2003 48.5% 63.3% 33.1% 81.6%
2002 48.2% 59.8% 35.9% 96.4%
2001 47.7% 58.1% 36.9% 93.1%
2000 48.1% 59.2% 33.1% 86.7%
1999 48.5% 60.3% 30.3% 103%
1998 48.3% 59.4% 34.5% 101.5%
1997 48.8% 58.8% 35.6% 76.7%
1996 49.6% 57.7% 33.3% 75.2%
1995 55.2% 54.9% 32.4% 74.2%
1994 48.3% 47.5% 33.8% 67.9%
1993 48.3% 45.1% 37.7% 58.6%
1992 47.4% 41.4% 41.2% 47.8%
1991 46.5% 39% 34.9% 39.4%
1990 44.7% 40.7% 39.3% -
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/saudi-arabia | CC BY

In 2025, Germany's government spending was $2.55T, accounting for 50.5% of its GDP, while Saudi Arabia spent $370B, or 29% of GDP.

Debt-to-GDP ratio is 62.9% in Germany and 31.7% in Saudi Arabia, ranking 70/185 and 151/185, respectively.

Government deficit by year

Deficit/surplus
Germany

Saudi Arabia
1x
Year Deficit/surplus, % of GDP
Germany Saudi Arabia
2025 -2.67% -5.77%
2024 -2.66% -2.46%
2023 -2.49% -1.77%
2022 -1.91% 2.24%
2021 -3.17% -1.99%
2020 -4.38% -10.2%
2019 1.33% -3.96%
2018 1.88% -5.21%
2017 1.34% -8.57%
2016 1.13% -13.2%
2015 0.91% -14.9%
2014 0.73% -3.4%
2013 0.12% 5.47%
2012 -0.05% 11.7%
2011 -0.84% 11.4%
2010 -4.42% 4.39%
2009 -3.18% -5.38%
2008 -0.26% 29.8%
2007 0.15% 11.8%
2006 -1.76% 20.8%
2005 -3.37% 18%
2004 -3.42% 9.72%
2003 -3.83% 1.2%
2002 -4.09% -5.91%
2001 -3.12% -3.91%
2000 -1.71% 3.18%
1999 -1.87% -5.99%
1998 -2.65% -8.88%
1997 -3.03% -2.51%
1996 -3.64% -3.25%
1995 -9.44% -5.12%
1994 -2.54% -8.31%
1993 -3.11% -9.33%
1992 -2.63% -8.12%
1991 -3.21% -3.28%
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/saudi-arabia | 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 Saudi Arabia's deficit of $73.7B, or 5.77% of GDP.

Over the past 35 years, Germany recorded a fiscal deficit in 27 of those years, while Saudi Arabia ran a deficit in 23 years. On average, Germany posted an annual deficit equal to 2.05% of GDP, compared to deficit of 0.34% of GDP for Saudi Arabia.

Inflation comparison by year

Inflation
Germany

Saudi Arabia
1x
Year Consumer prices inflation
Germany Saudi Arabia
2025 2.17% 2.08%
2024 2.26% 1.69%
2023 5.95% 2.33%
2022 6.87% 2.47%
2021 3.07% 3.06%
2020 0.14% 3.37%
2019 1.45% -1.19%
2018 1.73% 2.47%
2017 1.51% -0.83%
2016 0.49% 2.05%
2015 0.51% 1.22%
2014 0.91% 2.24%
2013 1.5% 3.51%
2012 2.01% 2.87%
2011 2.08% 5.83%
2010 1.1% 5.34%
2009 0.31% 5.06%
2008 2.63% 9.87%
2007 2.3% 4.17%
2006 1.58% 2.21%
2005 1.55% 0.48%
2004 1.67% 0.52%
2003 1.03% 0.61%
2002 1.42% 0.25%
2001 1.98% -1.12%
2000 1.44% -1.12%
1999 0.59% -1.33%
1998 0.91% -0.37%
1997 1.94% 0.06%

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

GeoRank.org/economy/germany/saudi-arabia | CC BY

Over the past 29 years, Germany has recorded an average annual inflation rate of 1.83%, compared with 1.99% in Saudi Arabia. In 2025, inflation was 2.17% in Germany and 2.08% in Saudi Arabia.

Top exports between countries

Germany
Export category Export value
Machinery & equipment $6.16B
Chemicals & pharma $2B
Metals $579M
Textiles & consumer goods $362M
Processed food, beverages & tobacco $257M
Raw materials & minerals $199M
Miscellaneous $142M
Raw agricultural goods $125M
Animal & marine products $120M
Wood & paper products $110M
Saudi Arabia
Export category Export value
Machinery & equipment $337M
Chemicals & pharma $70M
Metals $66.7M
Raw materials & minerals $16.3M
Textiles & consumer goods $15M
Precious metals & jewellery $14.9M
Raw agricultural goods $6.18M
Wood & paper products $1.46M
Processed food, beverages & tobacco $811K
Miscellaneous $746K

Balance of trade

Germany Saudi Arabia
Current account balance
$228B
2025
-$32.7B
2025
Current account balance ranking
2/190
2025
185/190
2025
Current account balance, % of GDP
+4.51%
2025
-2.56%
2025
Goods imports
$1.32T
2025
$230B
2025
Goods exports
$1.53T
2025
$311B
2025
Service imports
$602B
2025
$129B
2025
Service exports
$518B
2025
$69.4B
2025
Imports of goods and services, % of GDP
38.1%
2025
28.2%
2025
Exports of goods and services, % of GDP
40.4%
2025
29.7%
2025

Economic freedom indices

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

Germany Saudi Arabia
Economic freedom 71.7 65.4
Economic freedom ranking 30/197 65/197
Property rights 95.5 51.4
Government integrity 84.5 52.7
Judicial effectiveness 94.6 38.2
Tax burden 60.5 99.2
Government spending 28.8 77
Fiscal health 83.1 97.9
Business freedom 79.8 71.2
Labor freedom 52.2 41.8
Monetary freedom 72.5 81.2
Trade freedom 79.4 73.8
Investment freedom 60 50
Financial freedom 70 50

Economic freedom comparison by year

Germany
Saudi Arabia
1x
Year Economic freedom index
Germany Saudi Arabia
2026 71.7 65.4
2025 71.6 64.4
2024 72.1 61.9
2023 73.7 58.3
2022 76.1 55.5
2021 72.5 66
2020 73.5 62.4
2019 73.5 60.7
2018 74.2 59.6
2017 73.8 64.4
2016 74.4 62.1
2015 73.8 62.1
2014 73.4 62.2
2013 72.8 60.6
2012 71 62.5
2011 71.8 66.2
2010 71.1 64.1
2009 70.5 64.3
2008 70.6 62.5
2007 70.8 60.9
2006 70.8 63
2005 68.1 63
2004 69.5 60.4
2003 69.7 63.2
2002 70.4 65.3
2001 69.5 62.2
2000 65.7 66.5
1999 65.6 65.5
1998 64.3 69.3
1997 67.5 68.7
1996 69.1 68.3
1995 69.8 -

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

GeoRank.org/economy/germany/saudi-arabia | CC BY

The Economic Freedom Index for Germany is 71.7, ranking 30/197, compared to 65.4 for Saudi Arabia, ranking 65/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Germany Saudi Arabia
Services, % of GDP
64.5%
2025
48.9%
2025
Industry, % of GDP
25.2%
2025
43%
2025
Agriculture, forestry, and fishing, % of GDP
0.87%
2025
2.59%
2025
GNI, Atlas method
$5.03T
2025
$1.33T
2025
GNI per capita, PPP
$78,140
2025
$74,400
2025
Total reserves including gold
$572B
2025
$505B
2025
Total reserves ranking
7/177
2025
8/177
2025
Net foreign direct investment
$12.9B
2025
-$5.6B
2025
Net inflows of foreign direct investment
$62.6B
2024
$21.3B
2024
Net outflows of foreign direct investment
$87B
2024
$27.6B
2024
Poverty at national poverty lines
14.8%
2021
n/a
Gross capital formation, % of GDP
21.9%
2025
31.6%
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).

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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 (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.