Latvia has a GDP of $48.6B compared to $429B for Romania, ranking 99/197 and 39/197 by economy size, respectively.
Latvia has $22.8B in government debt (46.9% of GDP), compared to $260B (60.6% of GDP) in Romania.
Latvia vs Romania GDP by year
| Year | GDP, current $ | |
|---|---|---|
Latvia
|
Romania
|
|
| 2025 | $48,618,869,160 | $428,677,977,855 |
| 2024 | $44,001,275,013 | $382,564,217,989 |
| 2023 | $42,779,550,937 | $347,757,995,759 |
| 2022 | $38,003,198,509 | $295,317,862,856 |
| 2021 | $38,183,326,785 | $285,072,444,957 |
| 2020 | $33,379,927,435 | $250,624,575,872 |
| 2019 | $33,099,503,951 | $250,080,428,512 |
| 2018 | $33,247,935,477 | $241,791,427,224 |
| 2017 | $29,391,059,767 | $210,147,385,855 |
| 2016 | $27,117,105,060 | $185,290,759,249 |
| 2015 | $26,344,565,877 | $177,885,131,240 |
| 2014 | $30,277,203,767 | $199,722,319,676 |
| 2013 | $29,152,128,168 | $189,798,603,751 |
| 2012 | $27,116,149,949 | $179,117,323,107 |
| 2011 | $26,575,547,901 | $192,623,977,894 |
| 2010 | $23,468,324,572 | $170,064,350,672 |
| 2009 | $25,691,530,442 | $174,110,532,659 |
| 2008 | $34,135,200,994 | $214,315,932,061 |
| 2007 | $29,420,499,248 | $174,588,782,939 |
| 2006 | $20,434,922,247 | $122,023,735,993 |
| 2005 | $16,306,935,905 | $98,454,380,120 |
| 2004 | $13,827,070,379 | $74,973,656,852 |
| 2003 | $11,244,337,720 | $57,806,384,143 |
| 2002 | $9,249,030,241 | $46,065,502,703 |
| 2001 | $8,190,888,740 | $40,395,116,581 |
| 2000 | $7,761,252,607 | $37,253,739,511 |
| 1999 | $7,324,192,890 | $35,953,156,754 |
| 1998 | $6,974,112,951 | $41,696,091,974 |
| 1997 | $6,349,481,007 | $35,575,214,078 |
| 1996 | $5,799,465,288 | $36,937,074,278 |
| 1995 | $5,608,208,785 | $37,430,162,103 |
| 1994 | - | $30,072,805,104 |
| 1993 | - | $26,361,160,450 |
| 1992 | - | $25,121,666,667 |
| 1991 | - | $28,850,634,900 |
| 1990 | - | $38,247,882,300 |
| 1989 | - | $41,450,777,202 |
| 1988 | - | $40,424,528,302 |
| 1987 | - | $38,067,567,568 |
Data sources: World Bank | Economy & Growth (1987–2025, retrieved 2026-07-08).
GeoRank.org/economy/latvia/romania | CC BY 
GDP per capita in Latvia vs Romania by year
| Year | Current $ | |||
|---|---|---|---|---|
|
Latvia
|
Romania
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 2025 | $26,312 | - | $22,538 | - |
| 2024 | $23,579 | $43,394 | $20,080 | $49,077 |
| 2023 | $22,710 | $42,576 | $18,244 | $45,982 |
| 2022 | $20,221 | $40,559 | $15,503 | $41,979 |
| 2021 | $20,262 | $36,912 | $14,908 | $37,534 |
| 2020 | $17,564 | $32,741 | $13,009 | $34,194 |
| 2019 | $17,295 | $32,199 | $12,910 | $33,425 |
| 2018 | $17,252 | $29,818 | $12,416 | $29,383 |
| 2017 | $15,132 | $25,764 | $10,728 | $26,943 |
| 2016 | $13,839 | $24,063 | $9,405 | $23,905 |
| 2015 | $13,322 | $22,544 | $8,977 | $21,625 |
| 2014 | $15,186 | $21,554 | $10,032 | $20,633 |
| 2013 | $14,484 | $20,474 | $9,498 | $19,678 |
| 2012 | $13,329 | $19,417 | $8,930 | $19,808 |
| 2011 | $12,903 | $17,680 | $9,561 | $18,804 |
| 2010 | $11,188 | $16,373 | $8,400 | $17,355 |
| 2009 | $11,996 | $15,545 | $8,548 | $16,641 |
| 2008 | $15,678 | $17,443 | $10,435 | $16,782 |
| 2007 | $13,371 | $16,246 | $8,360 | $13,703 |
| 2006 | $9,212 | $14,180 | $5,758 | $11,554 |
| 2005 | $7,284 | $12,826 | $4,618 | $9,602 |
| 2004 | $6,110 | $11,319 | $3,495 | $8,989 |
| 2003 | $4,915 | $10,193 | $2,679 | $7,559 |
| 2002 | $4,004 | $9,569 | $2,120 | $7,162 |
| 2001 | $3,505 | $8,808 | $1,825 | $6,520 |
| 2000 | $3,278 | $7,849 | $1,660 | $5,850 |
| 1999 | $3,064 | $7,256 | $1,600 | $5,596 |
| 1998 | $2,894 | $6,922 | $1,853 | $5,545 |
| 1997 | $2,610 | $6,366 | $1,577 | $5,564 |
| 1996 | $2,360 | $5,688 | $1,633 | $5,746 |
| 1995 | $2,257 | $5,391 | $1,650 | $5,429 |
| 1994 | - | $5,012 | $1,323 | $4,995 |
| 1993 | - | $4,722 | $1,158 | $4,699 |
| 1992 | - | $4,760 | $1,102 | $4,515 |
| 1991 | - | $6,762 | $1,254 | $4,795 |
| 1990 | - | $7,448 | $1,648 | $5,280 |
| 1989 | - | - | $1,790 | - |
| 1988 | - | - | $1,753 | - |
| 1987 | - | - | $1,659 | - |
Data sources: World Bank | Economy & Growth (1987–2025, retrieved 2026-07-08).
GeoRank.org/economy/latvia/romania | CC BY
Latvia's GDP per capita is $26,312, ranking 51/197, compared to $22,538 in Romania, ranking 57/197. Adjusted for purchasing power (GDP per capita PPP), Latvia ranks 53rd at $43,394, while Romania ranks 47th at $49,077.
Economic indicators
|
Latvia
|
Romania
|
|
|---|---|---|
| Gross domestic product |
$48.6B
2025 |
$429B
2025 |
| GDP rank |
99/197
2025 |
39/197
2025 |
| GDP growth |
2.14%
2024-2025 |
0.68%
2024-2025 |
| GDP per capita |
$26,312
2025 |
$22,538
2025 |
| GDP per capita rank |
51/197
2025 |
57/197
2025 |
| GDP per capita, PPP |
$43,394
2024 |
$49,077
2024 |
| GDP per capita PPP rank |
53/197
2024 |
47/197
2024 |
| Government debt |
$22.8B
2025 |
$260B
2025 |
| Debt-to-GDP ratio |
46.9%
2025 |
60.6%
2025 |
| Government debt per person |
$12,353
2025 |
$13,650
2025 |
| Government debt per person rank |
50/185
2025 |
48/185
2025 |
| Average annual personal income after taxes |
$16,702
2026 |
$13,510
2026 |
| Market capitalization of domestic companies | n/a |
$70.9B
2025 |
| Number of billionaires | n/a |
6
2026 |
| Income share by richest 10% |
26.2%
2023 |
21.8%
2023 |
| Income share by poorest 10% |
2.6%
2023 |
2.4%
2023 |
| Government expenditure, % of GDP |
45.4%
2025 |
40.5%
2025 |
| Consumer prices inflation |
3.75%
2024-2025 |
7.3%
2024-2025 |
| Central bank interest rate | n/a |
6.5%
2024 |
| Unemployment rate |
6.9%
2025 |
6.1%
2025 |
| Population |
1826986
|
18912567
|
Spending and national debt comparison by year
| Year | % of GDP | |||
|---|---|---|---|---|
|
Latvia
|
Romania
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 2025 | 45.4% | 46.9% | 40.5% | 60.6% |
| 2024 | 44% | 46.2% | 40% | 57.5% |
| 2023 | 42.9% | 44.4% | 37% | 52.6% |
| 2022 | 43.6% | 44.4% | 37.5% | 51.9% |
| 2021 | 44.6% | 45.9% | 37.2% | 51.8% |
| 2020 | 42.6% | 44% | 38.3% | 49.5% |
| 2019 | 39% | 37.9% | 33.4% | 36.8% |
| 2018 | 39.4% | 38.3% | 31.9% | 36.4% |
| 2017 | 37.8% | 40.3% | 31% | 37.1% |
| 2016 | 37.4% | 41.7% | 31.8% | 39.5% |
| 2015 | 38.7% | 38.3% | 34.2% | 39.4% |
| 2014 | 39.2% | 43.1% | 33.8% | 40.5% |
| 2013 | 38.7% | 41.8% | 34.2% | 39.3% |
| 2012 | 38.6% | 44.4% | 33.5% | 36.2% |
| 2011 | 41.2% | 46.8% | 35% | 32.6% |
| 2010 | 43.6% | 48.2% | 37.4% | 30.2% |
| 2009 | 43.6% | 37.6% | 36.3% | 22.5% |
| 2008 | 38.2% | 19.3% | 35.3% | 13% |
| 2007 | 34.8% | 9% | 34.6% | 12.4% |
| 2006 | 35.5% | 10.7% | 33.9% | 12.7% |
| 2005 | 35.8% | 12.5% | 32.3% | 17.8% |
| 2004 | 34.8% | 15.3% | 33.7% | 21.3% |
| 2003 | 34.4% | 15.4% | 31.8% | 24.9% |
| 2002 | 35.4% | 15.4% | 32.1% | 27.4% |
| 2001 | 35% | 17.8% | 33.2% | 27.4% |
| 2000 | 37% | 15.1% | 35% | 29.6% |
| 1999 | 40.4% | 14.8% | 35.1% | 21.7% |
| 1998 | 38.1% | 9.81% | 34.7% | 16.5% |
| 1997 | - | - | 33.5% | 15% |
| 1996 | - | - | 33.5% | 11% |
| 1995 | - | - | 34.4% | 6.91% |
| 1994 | - | - | 33.1% | - |
| 1993 | - | - | 33.5% | - |
| 1992 | - | - | 41.5% | - |
| 1991 | - | - | 38.3% | - |
| 1990 | - | - | 38.4% | - |
| 1989 | - | - | 40.1% | - |
| 1988 | - | - | 36.6% | - |
| 1987 | - | - | 40.7% | - |
| 1986 | - | - | 42.5% | - |
| 1985 | - | - | 41.6% | - |
| 1984 | - | - | 28.6% | - |
| 1983 | - | - | 25.8% | - |
| 1982 | - | - | 28.5% | - |
| 1981 | - | - | 30.4% | - |
| 1980 | - | - | 33.6% | - |
| 1979 | - | - | 42% | - |
| 1978 | - | - | 42.1% | - |
| 1977 | - | - | 39.9% | - |
| 1976 | - | - | 37.5% | - |
| 1975 | - | - | 40.6% | - |
| 1974 | - | - | 37.6% | - |
| 1973 | - | - | 32.6% | - |
| 1972 | - | - | 29.9% | - |
| 1971 | - | - | 27.2% | - |
| 1970 | - | - | 28.1% | - |
| 1969 | - | - | 32.1% | - |
| 1968 | - | - | 31.8% | - |
| 1967 | - | - | 30.6% | - |
| 1966 | - | - | 27.3% | - |
| 1965 | - | - | 25.6% | - |
| 1964 | - | - | 25.1% | - |
| 1963 | - | - | 23.1% | - |
| 1962 | - | - | 43.4% | - |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1962–1999, retrieved 2026-07-08).
GeoRank.org/economy/latvia/romania | CC BY
In 2025, Latvia's government spending was $22.1B, accounting for 45.4% of its GDP, while Romania spent $173B, or 40.5% of GDP.
Debt-to-GDP ratio is 46.9% in Latvia and 60.6% in Romania, ranking 112/185 and 76/185, respectively.
Government deficit by year
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Latvia
|
Romania
|
|
| 2025 | -4.05% | -7.64% |
| 2024 | -1.72% | -8.68% |
| 2023 | -3.36% | -5.66% |
| 2022 | -3.95% | -5.85% |
| 2021 | -5.71% | -6.74% |
| 2020 | -3.85% | -9.6% |
| 2019 | -0.39% | -4.58% |
| 2018 | -0.77% | -2.76% |
| 2017 | -0.85% | -2.86% |
| 2016 | -0.41% | -2.5% |
| 2015 | -1.57% | -1.35% |
| 2014 | -1.74% | -1.76% |
| 2013 | -0.58% | -2.44% |
| 2012 | 0.18% | -2.39% |
| 2011 | -3.38% | -4.14% |
| 2010 | -6.56% | -6.22% |
| 2009 | -7.14% | -6.86% |
| 2008 | -3.29% | -4.6% |
| 2007 | 0.63% | -3.05% |
| 2006 | -0.48% | -1.36% |
| 2005 | -1.06% | -0.69% |
| 2004 | -1.04% | -3.39% |
| 2003 | -1.67% | -2.29% |
| 2002 | -2.59% | -2.59% |
| 2001 | -2.03% | -3.2% |
| 2000 | -2.57% | -3.99% |
| 1999 | -3.54% | -3.58% |
| 1998 | -0.66% | -5.33% |
| 1997 | - | -5.19% |
| 1996 | - | -4.74% |
| 1995 | - | -3.32% |
| 1994 | - | -2.2% |
| 1993 | - | -0.35% |
| 1992 | - | -4.55% |
| 1991 | - | 3.23% |
| 1990 | - | 1.03% |
| 1989 | - | -2.87% |
| 1988 | - | 8.4% |
| 1987 | - | 2.37% |
| 1986 | - | 5.72% |
| 1985 | - | 6.36% |
| 1984 | - | 15.2% |
| 1983 | - | 9.35% |
| 1982 | - | 0.36% |
| 1981 | - | 0.61% |
| 1980 | - | -1.95% |
| 1979 | - | 0% |
| 1978 | - | 0% |
| 1977 | - | 0.23% |
| 1976 | - | 0.66% |
| 1975 | - | 0.41% |
| 1974 | - | 0.51% |
| 1973 | - | 1.53% |
| 1972 | - | 1.21% |
| 1971 | - | 0.89% |
| 1970 | - | 0.52% |
| 1969 | - | 0.93% |
| 1968 | - | 1.65% |
| 1967 | - | 1.23% |
| 1966 | - | 0.91% |
| 1965 | - | -1.29% |
| 1964 | - | -3.11% |
| 1963 | - | -1.61% |
| 1962 | - | -4.86% |
Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1962–1989, retrieved 2026-07-08).
GeoRank.org/economy/latvia/romania | CC BY
In 2025, Latvia's government deficit, the difference between spending and revenue, was $1.97B, equivalent to 4.05% of GDP. This compares to Romania's deficit of $32.8B, or 7.64% of GDP.
Over the past 28 years, Latvia recorded a fiscal deficit in 26 of those years, while Romania ran a deficit in 28 years. On average, Latvia posted an annual deficit equal to 2.29% of GDP, compared to deficit of 4.15% of GDP for Romania.
Inflation comparison by year
| Year | Consumer prices inflation | |
|---|---|---|
|
Latvia
|
Romania
|
|
| 2025 | 3.75% | 7.3% |
| 2024 | 1.27% | 5.6% |
| 2023 | 8.94% | 10.4% |
| 2022 | 17.3% | 13.8% |
| 2021 | 3.28% | 5% |
| 2020 | 0.22% | 2.6% |
| 2019 | 2.81% | 3.8% |
| 2018 | 2.53% | 4.6% |
| 2017 | 2.93% | 1.3% |
| 2016 | 0.14% | -1.6% |
| 2015 | 0.17% | -0.6% |
| 2014 | 0.62% | 1.1% |
| 2013 | -0.03% | 4% |
| 2012 | 2.26% | 3.3% |
| 2011 | 4.37% | 5.8% |
| 2010 | -1.08% | 6.1% |
| 2009 | 3.53% | 5.6% |
| 2008 | 15.4% | 7.8% |
| 2007 | 10.1% | 4.8% |
| 2006 | 6.54% | 6.6% |
| 2005 | 6.75% | 9% |
| 2004 | 6.19% | 11.9% |
| 2003 | 2.94% | 15.4% |
| 2002 | 1.94% | 22.5% |
| 2001 | 2.49% | 34.5% |
| 2000 | 2.65% | 45.7% |
| 1999 | 2.36% | 45.8% |
| 1998 | 4.64% | 59.1% |
| 1997 | 8.45% | 154.8% |
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/latvia/romania | CC BY
Over the past 29 years, Latvia has recorded an average annual inflation rate of 4.26%, compared with 17.1% in Romania. In 2025, inflation was 3.75% in Latvia and 7.3% in Romania.
Top exports between countries
|
Latvia
|
|
|---|---|
| Export category | Export value |
| Processed food, beverages & tobacco | $46M |
| Chemicals & pharma | $21.8M |
| Raw agricultural goods | $20.8M |
| Machinery & equipment | $19.1M |
| Transport & tourism services | $14.1M |
| Animal & marine products | $11.8M |
| Textiles & consumer goods | $10.6M |
| Business & finance services | $6.49M |
| Wood & paper products | $6.39M |
| Raw materials & minerals | $3.27M |
|
Romania
|
|
|---|---|
| Export category | Export value |
| Machinery & equipment | $41M |
| Transport & tourism services | $38.6M |
| Chemicals & pharma | $35.3M |
| Processed food, beverages & tobacco | $21M |
| Textiles & consumer goods | $6.46M |
| Metals | $6.11M |
| Business & finance services | $3.56M |
| Wood & paper products | $2.99M |
| Raw materials & minerals | $2.23M |
| Animal & marine products | $1.16M |
Balance of trade
|
Latvia
|
Romania
|
|
|---|---|---|
|
Current account balance
|
-$1.64B
2025 |
-$33.9B
2025 |
| Current account balance ranking |
133/190
2025 |
186/190
2025 |
| Current account balance, % of GDP |
-3.38%
2025 |
-7.9%
2025 |
| Goods imports |
$25.6B
2025 |
$139B
2025 |
| Goods exports |
$21.1B
2025 |
$102B
2025 |
| Service imports |
$7.07B
2025 |
$35.9B
2025 |
| Service exports |
$9.33B
2025 |
$50.1B
2025 |
| Imports of goods and services, % of GDP |
67.2%
2025 |
40.7%
2025 |
| Exports of goods and services, % of GDP |
62.6%
2025 |
35.5%
2025 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Latvia
|
Romania
|
|
|---|---|---|
| Economic freedom | 71.6 | 65.4 |
| Economic freedom ranking | 31/197 | 64/197 |
| Property rights | 88.8 | 81 |
| Government integrity | 67.7 | 50 |
| Judicial effectiveness | 70.9 | 67 |
| Tax burden | 70.9 | 89.1 |
| Government spending | 42.7 | 56.7 |
| Fiscal health | 80.8 | 21.4 |
| Business freedom | 80.7 | 74.4 |
| Labor freedom | 60.5 | 63.6 |
| Monetary freedom | 76.3 | 72.7 |
| Trade freedom | 79.4 | 79.4 |
| Investment freedom | 80 | 70 |
| Financial freedom | 60 | 60 |
Economic freedom comparison by year
| Year | Economic freedom index | |
|---|---|---|
|
Latvia
|
Romania
|
|
| 2026 | 71.6 | 65.4 |
| 2025 | 71.4 | 66.5 |
| 2024 | 71.5 | 64.4 |
| 2023 | 72.8 | 64.5 |
| 2022 | 74.8 | 67.1 |
| 2021 | 72.3 | 69.5 |
| 2020 | 71.9 | 69.7 |
| 2019 | 70.4 | 68.6 |
| 2018 | 73.6 | 69.4 |
| 2017 | 74.8 | 69.7 |
| 2016 | 70.4 | 65.6 |
| 2015 | 69.7 | 66.6 |
| 2014 | 68.7 | 65.5 |
| 2013 | 66.5 | 65.1 |
| 2012 | 65.2 | 64.4 |
| 2011 | 65.8 | 64.7 |
| 2010 | 66.2 | 64.2 |
| 2009 | 66.6 | 63.2 |
| 2008 | 68.3 | 61.7 |
| 2007 | 67.9 | 61.2 |
| 2006 | 66.9 | 58.2 |
| 2005 | 66.3 | 52.1 |
| 2004 | 67.4 | 50 |
| 2003 | 66 | 50.6 |
| 2002 | 65 | 48.7 |
| 2001 | 66.4 | 50 |
| 2000 | 63.4 | 52.1 |
| 1999 | 64.2 | 50.1 |
| 1998 | 63.4 | 54.4 |
| 1997 | 62.4 | 50.8 |
| 1996 | 55 | 46.2 |
| 1995 | - | 42.9 |
Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08).
GeoRank.org/economy/latvia/romania | CC BY
The Economic Freedom Index for Latvia is 71.6, ranking 31/197, compared to 65.4 for Romania, ranking 64/197. The chart above displays a comparison of annual changes in economic freedom indexes.
Other economic metrics
|
Latvia
|
Romania
|
|
|---|---|---|
| Services, % of GDP |
64.2%
2025 |
61.7%
2025 |
| Industry, % of GDP |
18.7%
2025 |
25.3%
2025 |
| Agriculture, forestry, and fishing, % of GDP |
4.01%
2025 |
3%
2025 |
|
GNI, Atlas method
|
$46.1B
2025 |
$384B
2025 |
| GNI per capita, PPP |
$45,740
2025 |
$49,550
2025 |
| Total reserves including gold |
$6.1B
2025 |
$90.6B
2025 |
| Total reserves ranking |
95/177
2025 |
31/177
2025 |
|
Net foreign direct investment
|
$72.5M
2025 |
-$8.57B
2025 |
|
Net inflows of foreign direct investment
|
$1.51B
2024 |
$7.16B
2024 |
|
Net outflows of foreign direct investment
|
$257M
2024 |
$1.99B
2024 |
| Poverty at national poverty lines |
22.5%
2022 |
19%
2023 |
|
Gross capital formation, % of GDP
|
24.1%
2025 |
25.9%
2025 |
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/latvia/romania | CC BY
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Data sources:
- World Bank | Economy & Growth (1985–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
- International Monetary Fund (IMF) | Public Finances in Modern History (1962–1999, retrieved 2026-07-08)
- The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08)
- U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
- TradeMap (2024–2025, 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.