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Economy of Kenya vs South Africa compared: GDP & Debt

Updated on by Georank

Kenya has a GDP of $136B compared to $427B for South Africa, ranking 62/197 and 40/197 by economy size, respectively.

Kenya has $94.3B in government debt (69.3% of GDP), compared to $336B (78.6% of GDP) in South Africa.

Kenya vs South Africa GDP by year

Kenya
South Africa
1x
Year GDP, current $
Kenya South Africa
2025 $135,941,278,879 $427,184,325,997
2024 $120,397,537,850 $401,144,998,374
2023 $107,500,884,685 $381,440,724,491
2022 $114,448,978,153 $407,596,043,068
2021 $109,703,658,905 $419,986,284,375
2020 $100,657,505,751 $337,974,655,408
2019 $100,378,436,207 $389,330,032,224
2018 $92,202,979,985 $405,260,723,893
2017 $82,036,510,877 $381,448,814,653
2016 $74,815,144,164 $323,585,509,674
2015 $70,120,446,897 $346,709,790,459
2014 $68,285,796,514 $381,198,869,776
2013 $61,671,440,408 $400,886,013,596
2012 $56,396,704,672 $434,400,545,086
2011 $46,869,473,151 $458,199,494,831
2010 $45,405,615,064 $417,363,822,802
2009 $42,347,217,913 $329,754,060,647
2008 $35,895,153,328 $316,131,258,616
2007 $31,958,195,182 $333,077,117,254
2006 $25,825,512,284 $303,858,675,364
2005 $18,737,895,513 $288,867,217,197
2004 $16,095,337,094 $255,806,908,595
2003 $14,904,517,650 $197,018,965,309
2002 $13,147,736,899 $129,087,556,612
2001 $12,986,007,426 $135,429,905,923
2000 $12,705,350,098 $151,752,757,215
1999 $12,896,010,459 $151,516,957,079
1998 $14,093,998,844 $152,982,984,557
1997 $13,115,764,358 $168,978,057,328
1996 $12,045,865,396 $163,234,925,381
1995 $9,046,320,255 $171,735,933,897
1994 $7,148,148,564 $153,512,712,382
1993 $5,751,786,643 $147,194,747,566
1992 $8,209,120,763 $146,956,150,987
1991 $8,151,488,783 $135,203,698,238
1990 $8,572,359,038 $126,048,140,142
1989 $8,283,114,514 $108,055,624,082
1988 $8,355,380,879 $103,976,831,871
1987 $7,970,820,369 $96,535,763,418
1986 $7,239,126,568 $73,354,771,399
1985 $6,135,034,214 $64,459,376,087
1984 $6,191,437,070 $84,870,163,366
1983 $5,979,198,314 $96,204,110,942
1982 $6,431,579,357 $85,904,057,409
1981 $6,854,491,706 $93,141,472,164
1980 $7,265,315,820 $89,411,864,402
1979 $6,234,391,113 $63,038,658,089
1978 $5,303,735,111 $51,607,412,902
1977 $4,494,378,764 $45,328,411,332
1976 $3,474,542,392 $41,150,460,288
1975 $3,259,345,083 $42,906,905,672
1974 $2,969,958,812 $41,389,186,095
1973 $2,509,001,324 $33,262,772,008
1972 $2,107,279,157 $24,515,919,217
1971 $1,778,391,289 $23,411,076,638
1970 $1,603,447,359 $21,218,391,513
1969 $1,458,379,417 $19,256,992,297
1968 $1,353,295,459 $17,124,793,150
1967 $1,232,559,507 $15,821,393,671
1966 $1,164,519,674 $14,211,394,315
1965 $997,919,321 $13,068,994,772
1964 $998,759,334 $11,955,995,218
1963 $926,589,349 $10,854,195,658
1962 $868,111,401 $9,813,996,074
1961 $792,959,473 $9,225,996,310
1960 $791,265,459 $8,748,596,501

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

GeoRank.org/economy/kenya/south-africa | CC BY

GDP per capita in Kenya vs South Africa by year

Kenya
GDP per capita

GDP per capita, PPP
South Africa
GDP per capita

GDP per capita, PPP
1x
Year Current $
Kenya South Africa
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $2,363 - $6,598 -
2024 $2,133 $6,644 $6,267 $15,456
2023 $1,943 $6,317 $6,034 $15,200
2022 $2,110 $5,883 $6,534 $14,749
2021 $2,061 $5,339 $6,829 $13,682
2020 $1,928 $4,793 $5,581 $12,671
2019 $1,960 $4,687 $6,534 $13,361
2018 $1,836 $4,412 $6,914 $13,347
2017 $1,667 $4,177 $6,618 $13,738
2016 $1,554 $3,917 $5,651 $13,519
2015 $1,489 $3,678 $6,112 $13,398
2014 $1,483 $3,359 $6,857 $13,359
2013 $1,371 $3,106 $7,332 $13,369
2012 $1,285 $2,847 $8,077 $12,987
2011 $1,096 $2,750 $8,646 $13,143
2010 $1,092 $2,635 $7,973 $12,637
2009 $1,048 $2,480 $6,375 $12,261
2008 $916 $2,459 $6,185 $12,525
2007 $840 $2,481 $6,592 $12,047
2006 $700 $2,330 $6,077 $11,250
2005 $523 $2,189 $5,837 $10,441
2004 $464 $2,066 $5,221 $9,714
2003 $443 $1,975 $4,062 $9,139
2002 $403 $1,940 $2,688 $8,792
2001 $411 $1,961 $2,847 $8,428
2000 $415 $1,907 $3,218 $8,095
1999 $434 $1,910 $3,242 $7,667
1998 $488 $1,895 $3,310 $7,463
1997 $467 $1,865 $3,700 $7,433
1996 $441 $1,875 $3,618 $7,208
1995 $340 $1,818 $3,856 $6,875
1994 $276.4 $1,754 $3,489 $6,611
1993 $229 $1,723 $3,400 $6,375
1992 $337 $1,728 $3,462 $6,275
1991 $345 $1,756 $3,243 $6,383
1990 $374 $1,729 $3,093 $6,382
1989 $374 - $2,727 -
1988 $391 - $2,702 -
1987 $387 - $2,586 -
1986 $364 - $2,027 -
1985 $320 - $1,839 -
1984 $334 - $2,504 -
1983 $335 - $2,938 -
1982 $374 - $2,717 -
1981 $413 - $3,050 -
1980 $454 - $3,029 -
1979 $403 - $2,202 -
1978 $355 - $1,852 -
1977 $311 - $1,671 -
1976 $248.9 - $1,559 -
1975 $241.2 - $1,670 -
1974 $227.2 - $1,656 -
1973 $198.6 - $1,369 -
1972 $172.6 - $1,038 -
1971 $150.9 - $1,020 -
1970 $141 - $952 -
1969 $133.3 - $891 -
1968 $128.7 - $817 -
1967 $121.9 - $779 -
1966 $119.8 - $722 -
1965 $106.9 - $685 -
1964 $111.3 - $646 -
1963 $107.4 - $605 -
1962 $104.6 - $563 -
1961 $99.3 - $546 -
1960 $102.8 - $532 -

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

GeoRank.org/economy/kenya/south-africa | CC BY

Kenya's GDP per capita is $2,363, ranking 154/197, compared to $6,598 in South Africa, ranking 109/197. Adjusted for purchasing power (GDP per capita PPP), Kenya ranks 149th at $6,644, while South Africa ranks 112th at $15,456.

Economic indicators

Kenya South Africa
Gross domestic product
$136B
2025
$427B
2025
GDP rank
62/197
2025
40/197
2025
GDP growth
4.63%
2024-2025
1.11%
2024-2025
GDP per capita
$2,363
2025
$6,598
2025
GDP per capita rank
154/197
2025
109/197
2025
GDP per capita, PPP
$6,644
2024
$15,456
2024
GDP per capita PPP rank
149/197
2024
112/197
2024
Government debt
$94.3B
2025
$336B
2025
Debt-to-GDP ratio
69.3%
2025
78.6%
2025
Government debt per person
$1,638
2025
$5,189
2025
Government debt per person rank
126/185
2025
84/185
2025
Average annual personal income after taxes
$2,538
2026
$4,738
2026
Market capitalization of domestic companies
$22.8B
2025
$1.4T
2025
Number of millionaires n/a
97,000
2026
Number of billionaires n/a
7
2026
Income share by richest 10%
30.9%
2022
42.1%
2022
Income share by poorest 10%
2.9%
2022
1.4%
2022
Government expenditure, % of GDP
24%
2025
34.2%
2025
Consumer prices inflation
4.07%
2024-2025
3.21%
2024-2025
Central bank interest rate
8.75%
2026
7%
2026
Unemployment rate
5.44%
2022
32.3%
2024
Population
59218766
65829368

Spending and national debt comparison by year

Kenya
Spending

Debt
South Africa
Spending

Debt
1x
Year % of GDP
Kenya South Africa
Government spending Government debt Government spending Government debt
2025 24% 69.3% 34.2% 78.6%
2024 23.2% 67.3% 33% 76%
2023 22.6% 73.4% 32.5% 73.2%
2022 23.1% 67.8% 31.9% 70.7%
2021 24% 68.2% 32.7% 68.8%
2020 24.8% 68% 34.6% 68.9%
2019 24.4% 59.1% 31.4% 56.1%
2018 24.5% 56.4% 30.2% 51.5%
2017 25.2% 53.9% 29.9% 48.6%
2016 25.3% 50.4% 29.9% 47.1%
2015 23.8% 45.8% 30.2% 45.2%
2014 23.4% 41.3% 29.3% 43.3%
2013 23.2% 39.8% 28.9% 40.4%
2012 22.1% 37.6% 28.6% 37.4%
2011 20.1% 35.7% 28.1% 34.7%
2010 21.5% 36.7% 28.3% 31.2%
2009 20.3% 36% 28.5% 27%
2008 18.9% 34.3% 26% 24%
2007 18.1% 34.2% 24.4% 24.3%
2006 17.3% 37.1% 24.7% 28%
2005 16.2% 37.4% 25.1% 29.6%
2004 15.4% 40.8% 22.7% 30.7%
2003 16% 43.8% 22.6% 31.5%
2002 15.7% 42% 22.2% 31.8%
2001 14.9% 41.3% 22.6% 38%
2000 14.1% 43.1% 22.6% 37.9%
1999 13.7% 38.4% 26.7% 45.9%
1998 15.3% 38.5% 27.1% 45.8%
1997 15.6% 36% 27.9% 45.8%
1996 15.2% 40.5% 28.5% 44.3%
1995 17.3% 52.1% 27.2% 47%
1994 18.8% 57% 31.3% 46.4%
1993 18.9% 61.6% 29.1% 39.8%
1992 17.6% 41.2% 29.8% 34.8%
1991 16.4% 43% 27.8% 34.7%
1990 17.2% 37.6% 28.7% 31.8%
1989 16.3% 33.4% 29.6% 33.3%
1988 15.9% 33.9% 23.9% 30.6%
1987 15.5% 36.3% 28% 33.5%
1986 15.3% 31.3% 27.8% 32.5%
1985 15.6% 28.8% 26.8% 26.3%
1984 14.9% 25.6% 25.2% 23.2%
1983 14.6% 26.1% 25.1% 28.7%
1982 16.2% 26.9% 23.8% 31.3%
1981 - - 23.3% 27.4%
1980 - - 21.8% 33.3%
1979 - - 26.5% 41.9%
1978 - - 26.8% 44.7%
1977 - - 27.3% 45.3%
1976 - - 23% 35%
1975 - - 21.2% 32.8%
1974 - - 19.1% 33.7%
1973 - - 21% 38.2%
1972 - - 22.9% 41.1%
1971 - - 19.9% 41.1%
1970 - - 20% 43.3%
1969 - - 18.8% 44.4%
1968 - - 19.4% 42.7%
1967 - - 18.8% 41.1%
1966 - - 18.3% 41.4%
1965 - - 18.2% 42.7%
1964 - - 11.3% 30%
1963 - - 15.9% 43.4%
1962 - - 15.9% 45.7%
1961 - - 15.7% 52.8%
1960 - - 16.7% 52.9%

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1999, retrieved 2026-07-08).

GeoRank.org/economy/kenya/south-africa | CC BY

In 2025, Kenya's government spending was $32.6B, accounting for 24% of its GDP, while South Africa spent $146B, or 34.2% of GDP.

Debt-to-GDP ratio is 69.3% in Kenya and 78.6% in South Africa, ranking 59/185 and 46/185, respectively.

Government deficit by year

Deficit/surplus
Kenya

South Africa
1x
Year Deficit/surplus, % of GDP
Kenya South Africa
2025 -6.41% -5.78%
2024 -5.74% -5.67%
2023 -5.61% -5.6%
2022 -6.01% -4.25%
2021 -7.2% -5.54%
2020 -8.13% -9.62%
2019 -7.4% -5.07%
2018 -6.91% -3.73%
2017 -7.37% -4.02%
2016 -7.45% -3.72%
2015 -6.68% -4.37%
2014 -5.75% -3.93%
2013 -5.25% -3.9%
2012 -5.29% -4.04%
2011 -3.64% -3.7%
2010 -3.67% -4.51%
2009 -3.12% -4.67%
2008 -1.95% -0.49%
2007 -0.95% 1.22%
2006 -0.43% 0.81%
2005 -0.19% -0.1%
2004 0.5% -1.04%
2003 -0.73% -1.59%
2002 -1.29% -0.96%
2001 -0.53% -1.02%
2000 0.38% -1.38%
1999 0.84% -2.21%
1998 -0.03% -2.56%
1997 -0.91% -4.08%
1996 -0.49% -4.53%
1995 -0.23% -4.38%
1994 -4.14% -8.09%
1993 -8.57% -8.54%
1992 -8.28% -7.09%
1991 -6.56% -4.85%
1990 -3.28% -3.82%
1989 -2.39% -8.3%
1988 -1.97% -3.29%
1987 -2.27% -6.36%
1986 -2.98% -5.69%
1985 -3.05% -4.86%
1984 -2.55% -5.24%
1983 -2.17% -5.3%
1982 -3.07% -3.88%
1981 - -3.72%
1980 - -1.91%
1979 - -4.65%
1978 - -5.42%
1977 - -5.52%
1976 - -4.19%
1975 - -2.62%
1974 - -1.5%
1973 - -4.54%
1972 - -5.39%
1971 - -1.96%
1970 - -3.19%
1969 - -3.94%
1968 - -3.38%
1967 - -3.8%
1966 - -3.04%
1965 - -3.15%
1964 - -1.19%
1963 - -2.26%
1962 - -1.4%
1961 - -3.25%
1960 - -2.36%
1959 - -4.4%
1958 - -3.5%
1957 - -2.8%
1956 - -2.12%
1955 - -2.9%
1954 - -2.53%
1953 - -3.72%
1952 - -4.14%
1951 - -0.4%
1950 - -2.33%
1949 - -6.87%
1948 - -6.03%
1947 - -1.82%
1946 - -4.03%
1945 - -7.41%
1944 - -8.94%
1943 - -8.49%
1942 - -9.08%
1941 - -7.3%
1940 - -10.9%
1939 - -2.96%
1938 - -3.91%
1937 - -2.16%
1936 - -2.58%
1935 - -3.2%
1934 - -3.29%
1933 - -3.31%
1932 - -4.72%
1931 - -5.31%
1930 - -5.19%
1929 - -4.41%
1928 - -3.29%
1927 - -3.79%
1926 - -4.76%
1925 - -4.92%
1924 - -4.72%
1923 - -5.53%
1922 - -4.51%
1921 - -5.38%
1920 - -5.52%
1919 - -2.6%
1918 - -3.7%
1917 - -3.52%
1916 - -2.57%
1915 - -10.7%
1914 - -11.6%
1913 - -4.15%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1913–1999, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/kenya/south-africa | CC BY

In 2025, Kenya's government deficit, the difference between spending and revenue, was $8.72B, equivalent to 6.41% of GDP. This compares to South Africa's deficit of $24.7B, or 5.78% of GDP.

Over the past 44 years, Kenya recorded a fiscal deficit in 41 of those years, while South Africa ran a deficit in 42 years. On average, Kenya posted an annual deficit equal to 3.61% of GDP, compared to deficit of 4.09% of GDP for South Africa.

Inflation comparison by year

Inflation
Kenya

South Africa
1x
Year Consumer prices inflation
Kenya South Africa
2025 4.07% 3.21%
2024 4.49% 4.36%
2023 7.67% 6.08%
2022 7.66% 7.04%
2021 6.11% 4.62%
2020 5.41% 3.23%
2019 5.24% 4.1%
2018 4.69% 4.51%
2017 8.01% 5.19%
2016 6.3% 6.6%
2015 6.58% 4.52%
2014 6.88% 6.13%
2013 5.72% 5.78%
2012 9.38% 5.74%
2011 14% 5%
2010 3.96% 4.07%
2009 9.23% 7.24%
2008 26.2% 9.91%
2007 9.76% 6.18%
2006 14.5% 3.24%
2005 10.3% 2.06%
2004 11.6% -0.69%
2003 9.82% 5.68%
2002 1.96% 9.49%
2001 5.74% 5.7%
2000 9.98% 5.34%
1999 5.74% 5.18%
1998 6.72% 6.88%
1997 11.4% 8.6%

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

GeoRank.org/economy/kenya/south-africa | CC BY

Over the past 29 years, Kenya has recorded an average annual inflation rate of 8.25%, compared with 5.34% in South Africa. In 2025, inflation was 4.07% in Kenya and 3.21% in South Africa.

Top exports between countries

Kenya
Export category Export value
Precious metals & jewellery $22.7M
Raw agricultural goods $12.9M
Machinery & equipment $5.47M
Raw materials & minerals $3.44M
Chemicals & pharma $2.84M
Textiles & consumer goods $880K
Processed food, beverages & tobacco $873K
Metals $773K
Animal & marine products $509K
Wood & paper products $106K
South Africa
Export category Export value
Machinery & equipment $172M
Metals $108M
Raw materials & minerals $83.2M
Chemicals & pharma $75.8M
Raw agricultural goods $73.4M
Processed food, beverages & tobacco $63.5M
Textiles & consumer goods $24.9M
Wood & paper products $15.9M
Animal & marine products $4.48M
Miscellaneous $1.59M

Balance of trade

Kenya South Africa
Current account balance
-$1.55B
2024
-$1.81B
2025
Current account balance ranking
130/190
2024
135/190
2025
Current account balance, % of GDP
-1.29%
2024
-0.42%
2025
Goods imports
$22.2B
2024
$104B
2025
Goods exports
$12.5B
2024
$116B
2025
Service imports
$5.64B
2024
$21.8B
2025
Service exports
$8.04B
2024
$18.1B
2025
Imports of goods and services, % of GDP
21.8%
2025
29.5%
2025
Exports of goods and services, % of GDP
15.8%
2025
31.4%
2025

Economic freedom indices

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

Kenya South Africa
Economic freedom 55.5 58.6
Economic freedom ranking 128/197 110/197
Property rights 40.2 48.8
Government integrity 32.7 46.7
Judicial effectiveness 47 64.6
Tax burden 76.3 65.4
Government spending 84.1 68.4
Fiscal health 36.2 45.3
Business freedom 61.5 67.9
Labor freedom 56.5 70.8
Monetary freedom 75.1 75.8
Trade freedom 52 68.8
Investment freedom 55 40
Financial freedom 50 40

Economic freedom comparison by year

Kenya
South Africa
1x
Year Economic freedom index
Kenya South Africa
2026 55.5 58.6
2025 54.8 57.3
2024 53.6 55.3
2023 52.5 55.7
2022 52.6 56.2
2021 54.9 59.7
2020 55.3 58.8
2019 55.1 58.3
2018 54.7 63
2017 53.5 62.3
2016 57.5 61.9
2015 55.6 62.6
2014 57.1 62.5
2013 55.9 61.8
2012 57.5 62.7
2011 57.4 62.7
2010 57.5 62.8
2009 58.7 63.8
2008 59.3 63.4
2007 59.6 63.5
2006 59.7 63.7
2005 57.9 62.9
2004 57.7 66.3
2003 58.6 67.1
2002 58.2 64
2001 57.6 63.8
2000 59.7 63.7
1999 58.2 63.3
1998 58.4 64.3
1997 60.1 63.2
1996 56.4 62.5
1995 54.5 60.7

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

GeoRank.org/economy/kenya/south-africa | CC BY

The Economic Freedom Index for Kenya is 55.5, ranking 128/197, compared to 58.6 for South Africa, ranking 110/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Kenya South Africa
Services, % of GDP
55.1%
2025
63.1%
2025
Industry, % of GDP
16.3%
2025
24.1%
2025
Agriculture, forestry, and fishing, % of GDP
23.2%
2025
2.83%
2025
GNI, Atlas method
$127B
2025
$406B
2025
GNI per capita, PPP
$6,910
2025
$15,600
2025
Total reserves including gold
$12.4B
2025
$76B
2025
Total reserves ranking
76/177
2025
35/177
2025
Net foreign direct investment
-$45.8M
2024
-$1.85B
2025
Net inflows of foreign direct investment
$463M
2024
$2.33B
2024
Net outflows of foreign direct investment
$418M
2024
-$1.26B
2024
Servicing debt to the IMF, % of GNI
4.82%
2024
5.74%
2024
Poverty at national poverty lines
39.8%
2022
37.9%
2022
Gross capital formation, % of GDP
17%
2025
13.9%
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/kenya/south-africa | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Public Finances in Modern History (1913–1999, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, 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)
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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.