Japan has a GDP of $4.44T compared to $345M for Palau, ranking 4/197 and 193/197 by economy size, respectively.
Japan vs Palau GDP by year
| Year | GDP, current $ | |
|---|---|---|
Japan
|
Palau
|
|
| 2025 | $4,435,162,999,977 | $345,000,000 |
| 2024 | $4,190,008,188,359 | $321,501,813 |
| 2023 | $4,384,854,269,962 | $276,157,406 |
| 2022 | $4,447,976,207,315 | $247,470,813 |
| 2021 | $5,225,933,520,753 | $235,935,734 |
| 2020 | $5,189,197,543,645 | $258,985,859 |
| 2019 | $5,245,755,000,479 | $281,954,000 |
| 2018 | $5,154,293,721,630 | $288,228,344 |
| 2017 | $5,038,231,631,661 | $289,983,656 |
| 2016 | $5,110,357,383,254 | $303,326,125 |
| 2015 | $4,534,438,580,495 | $283,224,750 |
| 2014 | $4,985,763,289,561 | $245,436,547 |
| 2013 | $5,272,297,037,397 | $226,257,828 |
| 2012 | $6,333,803,928,788 | $214,928,297 |
| 2011 | $6,279,422,550,219 | $195,163,578 |
| 2010 | $5,811,578,109,447 | $184,292,328 |
| 2009 | $5,336,765,697,589 | $184,049,766 |
| 2008 | $5,160,197,175,876 | $199,046,109 |
| 2007 | $4,624,670,179,655 | $196,012,719 |
| 2006 | $4,648,058,930,707 | $190,777,422 |
| 2005 | $4,875,648,486,366 | $185,658,172 |
| 2004 | $4,941,485,123,807 | $166,363,734 |
| 2003 | $4,573,413,206,709 | $154,566,781 |
| 2002 | $4,245,946,980,572 | $162,658,719 |
| 2001 | $4,438,792,748,062 | $159,446,234 |
| 2000 | $5,042,381,838,343 | $149,551,484 |
| 1999 | $4,688,983,449,627 | $144,206,500 |
| 1998 | $4,150,359,076,370 | $149,079,600 |
| 1997 | $4,579,780,793,432 | $143,860,800 |
| 1996 | $5,021,441,618,840 | $137,494,600 |
| 1995 | $5,639,649,753,986 | $121,018,500 |
| 1994 | $5,104,063,486,348 | $106,138,500 |
| 1993 | $4,632,480,515,091 | $96,455,700 |
| 1992 | $4,064,529,567,505 | $104,771,300 |
| 1991 | $3,724,887,648,862 | $106,555,300 |
| 1990 | $3,252,994,239,867 | $97,702,303 |
| 1989 | $3,174,934,735,896 | $85,800,543 |
| 1988 | $3,191,546,727,316 | $75,348,615 |
| 1987 | $2,635,094,473,494 | $66,169,905 |
| 1986 | $2,164,729,071,349 | $58,109,314 |
| 1985 | $1,457,070,301,468 | $51,030,637 |
| 1984 | $1,374,165,212,365 | $44,814,259 |
| 1983 | $1,297,622,008,229 | $39,661,530 |
| 1982 | $1,183,132,285,328 | $36,027,583 |
| 1981 | $1,271,443,597,067 | $32,726,594 |
| 1980 | $1,153,159,955,513 | $29,728,054 |
| 1979 | $1,100,608,979,757 | $27,004,251 |
| 1978 | $1,057,419,758,047 | $24,530,015 |
| 1977 | $752,590,681,822 | $22,308,104 |
| 1976 | $611,495,350,304 | $20,364,420 |
| 1975 | $544,082,569,364 | $18,521,112 |
| 1974 | $500,355,087,138 | $16,848,759 |
| 1973 | $450,756,970,744 | $15,331,889 |
| 1972 | $331,776,379,992 | $13,956,474 |
| 1971 | $250,530,994,765 | $12,706,874 |
| 1970 | $221,798,003,144 | $11,563,041 |
| 1969 | $188,179,852,753 | - |
| 1968 | $160,201,483,788 | - |
| 1967 | $135,265,319,098 | - |
| 1966 | $115,427,351,851 | - |
| 1965 | $99,387,878,008 | - |
| 1964 | $89,332,989,729 | - |
| 1963 | $75,945,582,324 | - |
| 1962 | $66,356,388,224 | - |
| 1961 | $58,472,696,006 | - |
| 1960 | $48,417,804,545 | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/japan/palau | CC BY 
GDP per capita in Japan vs Palau by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Japan
|
Palau
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2025 | $35,951 | - | $19,532 | - |
| 2024 | $33,797 | $52,039 | $18,169 | - |
| 2023 | $35,215 | $50,662 | $15,578 | $18,230 |
| 2022 | $35,548 | $47,192 | $13,935 | $17,185 |
| 2021 | $41,581 | $44,355 | $13,267 | $15,781 |
| 2020 | $41,099 | $42,426 | $14,556 | $17,390 |
| 2019 | $41,425 | $42,678 | $15,842 | $18,422 |
| 2018 | $40,645 | $42,142 | $16,180 | $18,172 |
| 2017 | $39,680 | $41,444 | $16,280 | $17,991 |
| 2016 | $40,215 | $40,597 | $17,044 | $18,235 |
| 2015 | $35,665 | $40,899 | $15,938 | $17,854 |
| 2014 | $39,173 | $39,555 | $13,855 | $16,442 |
| 2013 | $41,369 | $39,402 | $12,821 | $15,425 |
| 2012 | $49,627 | $37,606 | $12,098 | $15,461 |
| 2011 | $49,122 | $36,214 | $10,796 | $14,673 |
| 2010 | $45,378 | $35,336 | $10,018 | $13,443 |
| 2009 | $41,678 | $33,543 | $9,837 | $13,414 |
| 2008 | $40,294 | $35,274 | $10,471 | $14,039 |
| 2007 | $36,130 | $35,015 | $10,155 | $14,308 |
| 2006 | $36,354 | $33,632 | $9,737 | $13,545 |
| 2005 | $38,159 | $32,170 | $9,368 | $12,960 |
| 2004 | $38,678 | $30,832 | $8,394 | $12,213 |
| 2003 | $35,809 | $29,392 | $7,862 | $11,588 |
| 2002 | $33,316 | $28,624 | $8,340 | $11,704 |
| 2001 | $34,910 | $27,943 | $8,239 | $11,092 |
| 2000 | $39,753 | $27,288 | $7,798 | $10,197 |
| 1999 | $37,029 | $25,736 | $7,630 | $10,388 |
| 1998 | $32,835 | $25,508 | $8,048 | $11,048 |
| 1997 | $36,331 | $25,619 | $7,945 | $10,957 |
| 1996 | $39,930 | $24,999 | $7,788 | $10,800 |
| 1995 | $44,947 | $23,858 | $7,038 | $9,863 |
| 1994 | $40,774 | $22,823 | $6,329 | $8,932 |
| 1993 | $37,111 | $22,168 | $5,892 | $8,348 |
| 1992 | $32,667 | $21,825 | $6,553 | $9,521 |
| 1991 | $30,048 | $21,227 | $6,824 | $10,184 |
| 1990 | $26,345 | $19,912 | $6,403 | $9,609 |
| 1989 | $25,798 | - | $5,741 | - |
| 1988 | $26,037 | - | $5,145 | - |
| 1987 | $21,587 | - | $4,616 | - |
| 1986 | $17,819 | - | $4,144 | - |
| 1985 | $12,058 | - | $3,728 | - |
| 1984 | $11,443 | - | $3,360 | - |
| 1983 | $10,876 | - | $3,049 | - |
| 1982 | $9,986 | - | $2,838 | - |
| 1981 | $10,806 | - | $2,639 | - |
| 1980 | $9,872 | - | $2,423 | - |
| 1979 | $9,497 | - | $2,189 | - |
| 1978 | $9,202 | - | $1,972 | - |
| 1977 | $6,609 | - | $1,781 | - |
| 1976 | $5,422 | - | $1,616 | - |
| 1975 | $4,876 | - | $1,464 | - |
| 1974 | $4,542 | - | $1,328 | - |
| 1973 | $4,147 | - | $1,221 | - |
| 1972 | $3,095 | - | $1,145 | - |
| 1971 | $2,370 | - | $1,081 | - |
| 1970 | $2,145 | - | $1,017 | - |
| 1969 | $1,841 | - | - | - |
| 1968 | $1,586 | - | - | - |
| 1967 | $1,354 | - | - | - |
| 1966 | $1,168 | - | - | - |
| 1965 | $1,015 | - | - | - |
| 1964 | $922 | - | - | - |
| 1963 | $792 | - | - | - |
| 1962 | $699 | - | - | - |
| 1961 | $622 | - | - | - |
| 1960 | $519 | - | - | - |
Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).
GeoRank.org/economy/japan/palau | CC BY
Japan's GDP per capita is $35,951, ranking 34/197, compared to $19,532 in Palau, ranking 63/197. Adjusted for purchasing power (GDP per capita PPP), Japan ranks 41st at $52,039, while Palau ranks 103rd at $18,230.
Economic indicators
|
Japan
|
Palau
|
|
|---|---|---|
| Gross domestic product |
$4.44T
2025 |
$345M
2025 |
| GDP rank |
4/197
2025 |
193/197
2025 |
| GDP growth |
1.19%
2024-2025 |
6.29%
2024-2025 |
| GDP per capita |
$35,951
2025 |
$19,532
2025 |
| GDP per capita rank |
34/197
2025 |
63/197
2025 |
| GDP per capita, PPP |
$52,039
2024 |
$18,230
2023 |
| GDP per capita PPP rank |
41/197
2024 |
103/197
2023 |
| Government debt |
$9.16T
2025 |
n/a |
| Debt-to-GDP ratio |
206.5%
2025 |
n/a |
| Government debt per person |
$74,248
2025 |
n/a |
| Government debt per person rank |
3/185
2025 |
n/a |
| Average annual personal income after taxes |
$22,962
2026 |
$10,433
2026 |
| Market capitalization of domestic companies |
$7.61T
2025 |
n/a |
| Number of millionaires |
2,902,000
2026 |
n/a |
| Number of billionaires |
41
2026 |
n/a |
| Income share by richest 10% |
24.3%
2020 |
n/a |
| Income share by poorest 10% |
2.3%
2020 |
n/a |
| Government expenditure, % of GDP |
36.9%
2025 |
52.1%
2025 |
| Consumer prices inflation |
3.17%
2024-2025 |
0.3%
2024-2025 |
| Central bank interest rate |
0.75%
2025 |
n/a |
| Unemployment rate |
2.5%
2025 |
2.09%
2023 |
| Population |
122704252
|
17620
|
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Japan
|
Palau
|
|
| 2025 | -1.05% | 1.73% |
| 2024 | -1.67% | 1.23% |
| 2023 | -2.39% | -2.28% |
| 2022 | -4.23% | -4.26% |
| 2021 | -6.32% | -9.94% |
| 2020 | -9.04% | -13% |
| 2019 | -3.05% | -0.36% |
| 2018 | -2.44% | 6.18% |
| 2017 | -3.05% | 4.76% |
| 2016 | -3.58% | 3.52% |
| 2015 | -3.64% | 5.08% |
| 2014 | -5.58% | 3.59% |
| 2013 | -7.62% | 0.54% |
| 2012 | -8.22% | 0.98% |
| 2011 | -9.02% | 1.29% |
| 2010 | -9.05% | -1.27% |
| 2009 | -9.62% | -2.14% |
| 2008 | -4.07% | -1.71% |
| 2007 | -2.86% | -2.08% |
| 2006 | -3% | 0.14% |
| 2005 | -4.39% | 1.38% |
| 2004 | -5.26% | -4.82% |
| 2003 | -7.35% | -6.91% |
| 2002 | -7.22% | -12.7% |
| 2001 | -6.11% | -16.7% |
| 2000 | -7.17% | -13.4% |
| 1999 | -6.68% | - |
| 1998 | -9.91% | - |
| 1997 | -3.44% | - |
| 1996 | -4.75% | - |
| 1995 | -4.22% | - |
| 1994 | -3.7% | - |
| 1993 | -2.34% | - |
| 1992 | 0.56% | - |
| 1991 | 1.64% | - |
| 1990 | 1.91% | - |
| 1989 | 1.23% | - |
| 1988 | 0.49% | - |
| 1987 | -0.36% | - |
| 1986 | -1.36% | - |
| 1985 | -1.37% | - |
| 1984 | -2.62% | - |
| 1983 | -3.95% | - |
| 1982 | -3.81% | - |
| 1981 | -3.85% | - |
| 1980 | -4.66% | - |
| 1979 | -5% | - |
| 1978 | -5.79% | - |
| 1977 | -4.02% | - |
| 1976 | -3.89% | - |
| 1975 | -2.92% | - |
| 1974 | 0.38% | - |
| 1973 | 0.56% | - |
| 1972 | -0.13% | - |
| 1971 | 1.21% | - |
| 1970 | 1.74% | - |
| 1969 | 1.26% | - |
| 1968 | 0.88% | - |
| 1967 | 0.8% | - |
| 1966 | -0.34% | - |
| 1965 | 0.48% | - |
| 1964 | 0.85% | - |
| 1963 | 1.08% | - |
| 1962 | 1.49% | - |
| 1961 | 2.58% | - |
| 1960 | 1.85% | - |
| 1959 | 0.97% | - |
| 1958 | -0.1% | - |
| 1957 | 1.27% | - |
| 1956 | 1.39% | - |
| 1955 | -0.67% | - |
| 1954 | 0.7% | - |
| 1953 | 1.65% | - |
| 1952 | 2.22% | - |
| 1951 | 5.06% | - |
| 1950 | 6.99% | - |
| 1949 | 12.5% | - |
| 1948 | 7.53% | - |
| 1947 | 6.09% | - |
| 1946 | - | - |
| 1945 | - | - |
| 1944 | - | - |
| 1943 | 0.32% | - |
| 1942 | -0.13% | - |
| 1941 | -0.19% | - |
| 1940 | 0.31% | - |
| 1939 | 0.11% | - |
| 1938 | 0.45% | - |
| 1937 | 0.71% | - |
| 1936 | 0.34% | - |
| 1935 | 0.26% | - |
| 1934 | 0.34% | - |
| 1933 | 0.28% | - |
| 1932 | 0.31% | - |
| 1931 | 0.23% | - |
| 1930 | 0.19% | - |
| 1929 | 0.5% | - |
| 1928 | 0.42% | - |
| 1927 | 0.58% | - |
| 1926 | 0.65% | - |
| 1925 | 0.75% | - |
| 1924 | 0.84% | - |
| 1923 | 0.87% | - |
| 1922 | 0.89% | - |
| 1921 | 1.43% | - |
| 1920 | 1.19% | - |
| 1919 | 1.21% | - |
| 1918 | 1.58% | - |
| 1917 | 1.54% | - |
| 1916 | 1.37% | - |
| 1915 | 1.41% | - |
| 1914 | 1.31% | - |
| 1913 | 1.21% | - |
| 1912 | 1.27% | - |
| 1911 | 1.21% | - |
| 1910 | 1.57% | - |
| 1909 | 1.51% | - |
| 1908 | 1.63% | - |
| 1907 | 1.77% | - |
| 1906 | 0.46% | - |
| 1905 | -0.68% | - |
| 1904 | -0.81% | - |
| 1903 | 0.19% | - |
| 1902 | 0.44% | - |
| 1901 | 0.21% | - |
| 1900 | 0.53% | - |
| 1899 | 0.2% | - |
| 1898 | 0.6% | - |
| 1897 | 0.33% | - |
| 1896 | 0.88% | - |
| 1895 | 0.28% | - |
| 1894 | -0.24% | - |
| 1893 | 0.6% | - |
| 1892 | 0.63% | - |
| 1891 | 0.61% | - |
| 1890 | 0.74% | - |
| 1889 | 0.18% | - |
| 1888 | 0.13% | - |
| 1887 | 0.11% | - |
| 1886 | 0.03% | - |
| 1885 | 0.01% | - |
| 1884 | 0.001% | - |
| 1883 | 0.03% | - |
| 1882 | 0.001% | - |
| 1881 | 0.001% | - |
| 1880 | 0.004% | - |
| 1879 | 0.02% | - |
| 1878 | 0.02% | - |
| 1877 | -0.29% | - |
| 1876 | -0.42% | - |
| 1875 | 0.005% | - |
Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1875–1989, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).
GeoRank.org/economy/japan/palau | CC BY
In 2025, Japan's government deficit, the difference between spending and revenue, was $46.7B, equivalent to 1.05% of GDP. This compares to Palau's surplus of $5.95M, or 1.73% of GDP.
Over the past 26 years, Japan recorded a fiscal deficit in 26 of those years, while Palau ran a deficit in 14 years. On average, Japan posted an annual deficit equal to 5.27% of GDP, compared to deficit of 2.35% of GDP for Palau.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Japan
|
Palau
|
|
| 2025 | 3.17% | 0.3% |
| 2024 | 2.74% | 3.6% |
| 2023 | 3.27% | 12.4% |
| 2022 | 2.5% | 13.2% |
| 2021 | -0.23% | -0.5% |
| 2020 | -0.02% | 0.7% |
| 2019 | 0.47% | 0.4% |
| 2018 | 0.99% | 2.4% |
| 2017 | 0.48% | 1.1% |
| 2016 | -0.13% | -1.3% |
| 2015 | 0.8% | 2.2% |
| 2014 | 2.76% | 4% |
| 2013 | 0.34% | 2.8% |
| 2012 | -0.04% | 5.4% |
| 2011 | -0.27% | 2.6% |
| 2010 | -0.73% | 1.1% |
| 2009 | -1.35% | 4.7% |
| 2008 | 1.38% | 9.9% |
| 2007 | 0.06% | 3% |
| 2006 | 0.25% | 4.2% |
| 2005 | -0.28% | 3.6% |
| 2004 | -0.009% | 0.5% |
| 2003 | -0.26% | 0.6% |
| 2002 | -0.92% | -0.3% |
| 2001 | -0.74% | -0.7% |
| 2000 | -0.68% | - |
| 1999 | -0.34% | - |
| 1998 | 0.66% | - |
| 1997 | 1.75% | - |
Data sources: World Bank | Economy & Growth (1997–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | World Economic Outlook (2001–2025, retrieved 2026-07-08).
GeoRank.org/economy/japan/palau | CC BY
Over the past 25 years, Japan has recorded an average annual inflation rate of 0.57%, compared with 3.04% in Palau. In 2025, inflation was 3.17% in Japan and 0.3% in Palau.
Top exports between countries
|
Japan
|
|
|---|---|
| Export category | Export value |
| Machinery & equipment | $18.5M |
| Processed food, beverages & tobacco | $1.24M |
| Miscellaneous | $1M |
| Metals | $1M |
| Chemicals & pharma | $367K |
| Textiles & consumer goods | $268K |
| Animal & marine products | $168K |
| Raw materials & minerals | $162K |
| Raw agricultural goods | $48K |
| Wood & paper products | $14K |
|
Palau
|
|
|---|---|
| Export category | Export value |
| Animal & marine products | $6.64M |
| Processed food, beverages & tobacco | $10K |
| Raw materials & minerals | $6K |
| Machinery & equipment | $4K |
Balance of trade
|
Japan
|
Palau
|
|
|---|---|---|
|
Current account balance
|
$216B
2025 |
-$134M
2023 |
| Current account balance ranking |
3/190
2025 |
84/190
2023 |
| Current account balance, % of GDP |
+4.86%
2025 |
-48.6%
2023 |
| Goods imports |
$729B
2025 |
$164M
2023 |
| Goods exports |
$725B
2025 |
$1.74M
2023 |
| Service imports |
$269B
2025 |
$43M
2023 |
| Service exports |
$246B
2025 |
$61.9M
2023 |
| Imports of goods and services, % of GDP |
22.9%
2024 |
73.1%
2024 |
| Exports of goods and services, % of GDP |
22%
2024 |
32.7%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Japan
|
Palau
|
|
|---|---|---|
| Economic freedom | 70.3 | 62 |
| Economic freedom ranking | 36/197 | 89/197 |
| Property rights | 94.2 | n/a |
| Government integrity | 81.1 | n/a |
| Judicial effectiveness | 97.9 | n/a |
| Tax burden | 63 | n/a |
| Government spending | 52 | n/a |
| Fiscal health | 41.7 | n/a |
| Business freedom | 77.8 | n/a |
| Labor freedom | 65.9 | n/a |
| Monetary freedom | 74.3 | n/a |
| Trade freedom | 76.2 | n/a |
| Investment freedom | 60 | n/a |
| Financial freedom | 60 | n/a |
Other economic metrics
|
Japan
|
Palau
|
|
|---|---|---|
| Services, % of GDP |
71.4%
2024 |
73.1%
2024 |
| Industry, % of GDP |
26.8%
2024 |
13%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
0.96%
2024 |
2.73%
2024 |
|
GNI, Atlas method
|
$4.73T
2025 |
$351M
2025 |
| GNI per capita, PPP |
$58,920
2025 |
$23,480
2025 |
| Total reserves including gold |
$1.37T
2025 |
n/a |
| Total reserves ranking |
3/177
2025 |
n/a |
|
Net foreign direct investment
|
$172B
2025 |
-$79.9M
2023 |
|
Net inflows of foreign direct investment
|
$18.9B
2024 |
$69.1M
2024 |
|
Net outflows of foreign direct investment
|
$207B
2024 |
$0
2024 |
| Poverty at national poverty lines |
16.1%
2020 |
24.9%
2020 |
|
Gross capital formation, % of GDP
|
27.7%
2024 |
35%
2024 |
GDP per capita map
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/japan/palau | CC BY
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Data sources:
- World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Public Finances in Modern History (1875–1989, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
- U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
- TradeMap (2018–2025, retrieved 2026-07-08)
- The Heritage Foundation | Economic Freedom Index (2026, retrieved 2026-07-08)
- Central Intelligence Agency (CIA) (2020, retrieved 2026-07-08)
- United Nations | World Population Prospects (2026, retrieved 2026-07-08)
- 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.
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.