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Economy of Lebanon vs Netherlands compared: GDP & Debt

Updated on by Georank team

Lebanon has a GDP of $20.1B compared to $1.21T for the Netherlands, ranking 128/197 and 19/197 by economy size, respectively.

Lebanon has $38.7B in government debt (163.8% of GDP), compared to $532B (43.8% of GDP) in the Netherlands.

Lebanon vs Netherlands GDP by year

Lebanon
Netherlands
1x
Year GDP, current $
Lebanon Netherlands
2024 - $1,214,927,698,573
2023 $20,078,620,357 $1,135,475,867,551
2022 $20,992,421,949 $1,046,540,797,549
2021 $23,131,941,557 $1,054,472,123,450
2020 $31,712,128,254 $932,560,861,701
2019 $51,605,959,131 $928,903,005,576
2018 $54,901,519,156 $929,733,599,797
2017 $53,027,680,686 $848,233,537,846
2016 $51,147,308,774 $797,163,949,290
2015 $49,929,337,837 $775,743,675,303
2014 $48,095,213,747 $901,556,501,756
2013 $46,880,103,081 $883,951,539,007
2012 $44,016,799,516 $845,689,017,066
2011 $39,927,125,962 $913,140,741,333
2010 $38,443,907,042 $852,464,982,433
2009 $35,399,582,929 $878,954,223,140
2008 $29,118,916,105 $957,901,566,041
2007 $24,827,355,015 $853,499,460,873
2006 $22,022,709,851 $737,593,995,289
2005 $21,497,336,499 $688,133,699,636
2004 $21,159,827,992 $661,224,886,143
2003 $20,082,918,740 $582,435,617,082
2002 $19,152,238,806 $475,529,972,123
2001 $17,649,751,244 $432,536,219,669
2000 $17,260,364,842 $417,649,282,154
1999 $17,391,056,369 $447,778,514,140
1998 $17,247,179,006 $438,612,530,549
1997 $15,751,867,489 $417,506,211,882
1996 $13,690,217,334 $451,372,549,020
1995 $11,718,795,529 $452,967,334,614
1994 $9,599,127,050 $379,688,232,232
1993 $7,941,744,492 $354,070,495,966
1992 $5,843,579,161 $363,497,050,125
1991 $4,690,415,093 $327,982,316,124
1990 $2,838,485,354 $318,799,003,994
1989 $2,717,998,688 $258,716,904,292
1988 $3,313,540,068 $262,295,966,105
1987 - $245,406,949,521
1986 - $201,157,708,221
1985 - $144,057,523,222
1984 - $144,124,462,912
1983 - $153,671,294,109
1982 - $158,712,765,536
1981 - $164,375,775,854
1980 - $195,439,301,707
1979 - $179,933,827,310
1978 - $156,089,077,205
1977 - $127,203,923,857
1976 - $109,329,386,564
1975 - $100,397,061,694
1974 - $87,371,810,804
1973 - $71,946,639,603
1972 - $54,787,070,173
1971 - $44,644,730,576
1970 - $38,220,884,519
1969 - $34,086,038,090
1968 - $30,097,635,751
1967 - $27,143,828,099
1966 - $24,741,480,717
1965 - $22,721,869,808
1964 - $20,232,048,553
1963 - $17,193,744,109
1962 - $15,847,582,341
1961 - $14,599,836,396
1960 - $13,282,979,015

Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).

GeoRank.org/economy/lebanon/netherlands | CC BY

GDP per capita in Lebanon vs Netherlands by year

Lebanon
GDP per capita

GDP per capita, PPP
Netherlands
GDP per capita

GDP per capita, PPP
1x
Year Current $
Lebanon Netherlands
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2024 - - $67,520 $86,174
2023 $3,478 $12,575 $63,516 $81,729
2022 $3,654 $12,293 $59,123 $78,630
2021 $4,045 $11,600 $60,142 $68,574
2020 $5,561 $16,260 $53,468 $62,597
2019 $8,906 $21,710 $53,555 $62,345
2018 $9,175 $21,985 $53,955 $58,819
2017 $8,608 $20,964 $49,514 $56,038
2016 $8,089 $18,941 $46,809 $53,162
2015 $7,714 $17,046 $45,794 $50,957
2014 $7,578 $16,140 $53,457 $49,751
2013 $8,162 $16,316 $52,602 $49,622
2012 $8,407 $16,121 $50,474 $47,653
2011 $7,835 $14,975 $54,702 $47,004
2010 $7,626 $14,704 $51,306 $45,301
2009 $7,091 $13,586 $53,172 $44,959
2008 $5,912 $12,416 $58,247 $46,714
2007 $5,125 $11,356 $52,101 $44,203
2006 $4,635 $10,312 $45,124 $41,208
2005 $4,602 $10,020 $42,165 $37,778
2004 $4,601 $9,609 $40,611 $35,961
2003 $4,438 $8,914 $35,897 $34,286
2002 $4,291 $8,586 $29,447 $34,568
2001 $4,010 $8,289 $26,956 $33,259
2000 $3,987 $7,938 $26,225 $31,895
1999 $4,087 $7,793 $28,319 $29,316
1998 $4,125 $7,861 $27,924 $27,749
1997 $3,834 $7,632 $26,745 $26,062
1996 $3,393 $7,560 $29,064 $24,564
1995 $2,959 $6,796 $29,301 $23,480
1994 $2,468 $6,367 $24,683 $22,414
1993 $2,079 $5,871 $23,156 $21,443
1992 $1,559 $5,279 $23,939 $20,831
1991 $1,278 $4,527 $21,764 $20,177
1990 $790 $2,990 $21,322 $19,203
1989 $771 - $17,423 -
1988 $959 - $17,771 -
1987 - - $16,734 -
1986 - - $13,804 -
1985 - - $9,941 -
1984 - - $9,992 -
1983 - - $10,696 -
1982 - - $11,089 -
1981 - - $11,537 -
1980 - - $13,812 -
1979 - - $12,817 -
1978 - - $11,196 -
1977 - - $9,180 -
1976 - - $7,937 -
1975 - - $7,346 -
1974 - - $6,450 -
1973 - - $5,353 -
1972 - - $4,110 -
1971 - - $3,384 -
1970 - - $2,931 -
1969 - - $2,647 -
1968 - - $2,364 -
1967 - - $2,155 -
1966 - - $1,986 -
1965 - - $1,848 -
1964 - - $1,668 -
1963 - - $1,437 -
1962 - - $1,342 -
1961 - - $1,254 -
1960 - - $1,156 -

Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).

GeoRank.org/economy/lebanon/netherlands | CC BY

Lebanon's GDP per capita is $3,478, ranking 135/197, compared to $67,520 in the Netherlands, ranking 13/197. Adjusted for purchasing power (GDP per capita PPP), Lebanon ranks 123rd at $12,575, while the Netherlands ranks 11th at $86,174.

Economic indicators

Lebanon Netherlands
Gross domestic product
$20.1B
2023
$1.21T
2024
GDP rank
128/197
2023
19/197
2024
GDP growth
-0.76%
2022-2023
1.08%
2023-2024
GDP per capita
$3,478
2023
$67,520
2024
GDP per capita rank
135/197
2023
13/197
2024
GDP per capita, PPP
$12,575
2023
$86,174
2024
GDP per capita PPP rank
123/197
2023
11/197
2024
Government debt
$38.7B
2023
$532B
2024
Debt-to-GDP ratio
163.8%
2024
43.8%
2024
Government debt per person
$6,704
2023
$29,571
2024
Government debt per person rank
70/185
2023
24/185
2024
Average annual personal income after taxes
$3,560
2026
$47,815
2026
Market capitalization of domestic companies
$10.6B
2021
$1.1T
2017
Number of millionaires n/a
1,267,000
2025
Number of billionaires
6
2025
13
2025
Income share by richest 10%
25.1%
2022
21.4%
2021
Income share by poorest 10%
2.8%
2022
3.6%
2021
Government expenditure, % of GDP
16.5%
2024
44.4%
2024
Consumer prices inflation
45.2%
2023-2024
3.35%
2023-2024
Central bank interest rate
20%
2023
n/a
Unemployment rate
11.3%
2019
3.64%
2024
Population
5906622
18252623

Spending and national debt comparison by year

Lebanon
Spending

Debt
Netherlands
Spending

Debt
1x
Year % of GDP
Lebanon Netherlands
Government spending Government debt Government spending Government debt
2024 16.5% 163.8% 44.4% 43.8%
2023 14.9% 192.8% 44% 45.9%
2022 13.4% 244.6% 43.3% 48.4%
2021 10.9% 358% 45.9% 50.5%
2020 23.2% 148.7% 47.8% 53.4%
2019 31.3% 172.1% 42.1% 47.7%
2018 32.3% 155.1% 42.4% 51.6%
2017 30.6% 150% 42.8% 56%
2016 28.3% 146.4% 43.9% 60.9%
2015 26.7% 140.8% 45.3% 63.8%
2014 28.8% 138.4% 46.7% 67.2%
2013 28.9% 135.4% 47.5% 67.2%
2012 30.2% 131.1% 47.6% 65.7%
2011 28.8% 134.4% 47.8% 61.2%
2010 29.2% 136.8% 48.9% 58.9%
2009 32.1% 144.5% 48.4% 56.3%
2008 34.3% 161.5% 44.3% 54.4%
2007 35.2% 169.3% 43.3% 42.7%
2006 36.1% 183.3% 44% 45%
2005 31.4% 178.9% 43.4% 49.6%
2004 33.3% 169.5% 44.7% 50.1%
2003 36.4% 171.3% 45.8% 49.8%
2002 36.8% 163.1% 44.8% 48.7%
2001 38.9% 163.1% 44.1% 49.4%
2000 42.8% 148.1% 43.2% 52.2%
1999 35.6% 130.2% 44.3% 58.6%
1998 34.7% 108.2% 44.6% 62.7%
1997 40.5% 100.2% 45.7% 65.7%
1996 43.6% 101.2% 47.3% 71.2%
1995 31.1% 79.6% 53.9% 73%
1994 47.3% 71.5% 49.4% 73.5%
1993 23% 50.5% 50.9% 76.7%
1992 36.1% 51.7% 50.2% 75.6%
1991 35.6% 67.1% 49.6% 74.8%
1990 40% 99.7% 48.8% 75%
1989 - - 54.5% 73.7%
1988 - - 56.4% 73.7%
1987 - - 58.5% 71.3%
1986 - - 57% 68.9%
1985 - - 57.3% 67.1%
1984 - - 58.1% 61.9%
1983 - - 59.1% 58.4%
1982 - - 59.1% 52.4%
1981 - - 56.8% 46.9%
1980 - - 55.2% 43.6%
1979 - - 53.7% 39.5%
1978 - - 52.3% 38.1%
1977 - - 50.6% 34.9%
1976 - - 50.8% 35.2%
1975 - - 50.8% 36.1%
1974 - - 46.4% 36.3%
1973 - - 44.6% 38.1%
1972 - - 44.9% 41.3%
1971 - - 44.6% 43.7%
1970 - - 43.2% 46.1%
1969 - - 42.1% 48.2%
1968 - - 25.4% 54.4%
1967 - - 24.1% 55%
1966 - - 24.4% 55.6%
1965 - - 23.4% 55.8%
1964 - - 22.3% 57.1%
1963 - - 21.9% 61.7%
1962 - - 22.1% 63.8%
1961 - - 22.2% 65.9%
1960 - - 20.4% 66.7%

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1999, retrieved 2026-02-20).

GeoRank.org/economy/lebanon/netherlands | CC BY

In 2024, Lebanon's government spending was $2.99B, accounting for 16.5% of its GDP, while the Netherlands spent $540B, or 44.4% of GDP.

Debt-to-GDP ratio is 163.8% in Lebanon and 43.8% in the Netherlands, ranking 6/185 and 123/185, respectively.

Government deficit by year

Deficit/surplus
Lebanon

Netherlands
1x
Year Deficit/surplus, % of GDP
Lebanon Netherlands
2024 -0.19% -0.94%
2023 -1.7% -0.37%
2022 -7.77% 0.002%
2021 -2.67% -2.26%
2020 -7.37% -3.72%
2019 -10.5% 1.91%
2018 -11.3% 1.49%
2017 -8.65% 1.35%
2016 -8.88% 0.23%
2015 -7.48% -1.84%
2014 -6.22% -2.17%
2013 -8.82% -2.87%
2012 -8.43% -3.83%
2011 -5.94% -4.42%
2010 -7.47% -5.3%
2009 -8.1% -5.06%
2008 -9.86% -0.06%
2007 -10.9% -0.16%
2006 -10.6% 0.04%
2005 -8.57% -0.51%
2004 -9.83% -1.82%
2003 -14% -3.19%
2002 -16.2% -2.23%
2001 -21% -0.47%
2000 -23.9% 1.14%
1999 -16.7% 0.28%
1998 -17.3% -1.34%
1997 -24.5% -1.6%
1996 -25.7% -1.91%
1995 -13.6% -8.72%
1994 -29.1% -3.53%
1993 -7.19% -3.13%
1992 -24% -3.12%
1991 -19.5% -2.05%
1990 -30.2% -4.08%
1989 - -5%
1988 - -4.23%
1987 - -5.39%
1986 - -4.62%
1985 - -3.6%
1984 - -5.25%
1983 - -5.47%
1982 - -6.17%
1981 - -4.92%
1980 - -3.95%
1979 - -2.46%
1978 - -2.09%
1977 - -0.75%
1976 - -2.02%
1975 - -2.82%
1974 - -0.26%
1973 - 0.54%
1972 - -0.7%
1971 - -1.58%
1970 - -1.52%
1969 - -1.14%
1968 - -3.06%
1967 - -1.97%
1966 - -2.37%
1965 - -1.15%
1964 - -1.2%
1963 - -0.54%
1962 - -1.38%
1961 - -0.38%
1960 - 0.9%
1959 - -0.74%
1958 - -0.89%
1957 - 0.3%
1956 - -0.83%
1955 - -0.25%
1954 - 0.76%
1953 - -2.95%
1952 - 2.19%
1951 - 2.13%
1950 - 0.81%
1949 - 2.3%
1948 - -
1947 - -
1946 - -
1945 - -
1944 - -
1943 - -
1942 - -
1941 - -
1940 - -
1939 - -3.19%
1938 - -0.37%
1937 - 0.02%
1936 - -0.41%
1935 - -0.69%
1934 - -0.92%
1933 - -2.55%
1932 - -1.97%
1931 - -1.66%
1930 - -0.55%
1929 - -1.16%
1928 - -0.62%
1927 - -0.33%
1926 - -0.78%
1925 - -2.04%
1924 - -3.37%
1923 - -2.62%
1922 - -
1921 - -
1920 - -
1919 - -
1918 - -
1917 - -
1916 - -
1915 - -
1914 - -
1913 - -0.45%
1912 - -0.47%
1911 - -0.13%
1910 - -0.93%
1909 - -0.34%
1908 - -0.57%
1907 - 0.03%
1906 - 0.16%
1905 - 0.1%
1904 - -0.72%
1903 - 0.09%
1902 - -0.14%
1901 - 0.03%
1900 - 0.06%
1899 - -0.13%
1898 - -0.48%
1897 - -0.45%
1896 - 0.08%
1895 - -0.06%
1894 - 0.12%
1893 - -0.76%
1892 - -1.72%
1891 - -0.06%
1890 - -0.06%
1889 - 0.04%
1888 - -0.31%
1887 - -0.37%
1886 - -0.08%
1885 - -0.55%
1884 - 0%
1883 - -2.1%
1882 - -1.11%
1881 - -1.06%
1880 - 0.21%

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1880–1989, retrieved 2026-02-20); International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20).

GeoRank.org/economy/lebanon/netherlands | CC BY

In 2023, Lebanon's government deficit, the difference between spending and revenue, was $342M, equivalent to 1.7% of GDP. This compares to the Netherlands' deficit of $4.21B, or 0.37% of GDP.

Over the past 34 years, Lebanon recorded a fiscal deficit in 34 of those years, while the Netherlands ran a deficit in 26 years. On average, Lebanon posted an annual deficit equal to 13.1% of GDP, compared to deficit of 1.86% of GDP for the Netherlands.

Inflation comparison by year

Inflation
Lebanon

Netherlands
1x
Year Consumer prices inflation
Lebanon Netherlands
2024 45.2% 3.35%
2023 221.3% 3.84%
2022 171.2% 10%
2021 154.8% 2.68%
2020 84.9% 1.27%
2019 2.9% 2.63%
2018 6.1% 1.7%
2017 4.5% 1.38%
2016 -0.8% 0.32%
2015 -3.8% 0.6%
2014 1.1% 0.98%
2013 5.6% 2.51%
2012 6.6% 2.46%
2011 5% 2.34%
2010 4% 1.28%
2009 1.2% 1.19%
2008 10.7% 2.49%
2007 4.1% 1.61%
2006 4.1% 1.1%
2005 -1.4% 1.69%
2004 1.7% 1.26%
2003 1.3% 2.09%
2002 1.8% 3.29%
2001 -0.4% 4.16%
2000 -0.4% 2.36%
1999 0.2% 2.16%
1998 4.5% 1.96%
1997 7.7% 2.11%

Data sources: International Monetary Fund (IMF) | World Economic Outlook (1997–2024, retrieved 2026-02-20); World Bank | Economy & Growth (1997–2024, retrieved 2026-04-06).

GeoRank.org/economy/lebanon/netherlands | CC BY

Over the past 28 years, Lebanon has recorded an average annual inflation rate of 26.6%, compared with 2.31% in the Netherlands. In 2024, inflation was 45.2% in Lebanon and 3.35% in the Netherlands.

Top exports between countries

Lebanon
Export category Export value
Processed food, beverages & tobacco $17.1M
Raw agricultural goods $6.15M
Machinery & equipment $3.32M
Chemicals & pharma $3.16M
Textiles & consumer goods $2.05M
Metals $484K
Wood & paper products $453K
Miscellaneous $419K
Precious metals & jewellery $158K
Raw materials & minerals $41K
Netherlands
Export category Export value
Machinery & equipment $69.4M
Processed food, beverages & tobacco $66.4M
Chemicals & pharma $64.6M
Raw agricultural goods $40.2M
Animal & marine products $22.3M
Raw materials & minerals $20.8M
Textiles & consumer goods $10.4M
Wood & paper products $3.81M
Metals $2.75M
Precious metals & jewellery $247K

Balance of trade

Lebanon Netherlands
Current account balance
-$5.64B
2023
$111B
2024
Current account balance ranking
168/190
2023
5/190
2024
Current account balance, % of GDP
-28.1%
2023
+9.13%
2024
Goods imports
$16.7B
2023
$606B
2024
Goods exports
$3.85B
2023
$693B
2024
Service imports
$6.63B
2023
$262B
2024
Service exports
$7.92B
2023
$308B
2024
Imports of goods and services, % of GDP
73.7%
2023
71.4%
2024
Exports of goods and services, % of GDP
30.6%
2023
82.4%
2024

Economic freedom indices

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

Lebanon Netherlands
Economic freedom 43.1 78.5
Economic freedom ranking 183/197 11/197
Property rights 21.8 96
Government integrity 23.4 86.8
Judicial effectiveness 23.8 96.1
Tax burden 90.3 54
Government spending 93.3 42.2
Fiscal health 63.4 95.9
Business freedom 47.6 85
Labor freedom 48.4 59.3
Monetary freedom 0 77
Trade freedom 65.6 79.4
Investment freedom 20 90
Financial freedom 20 80

Economic freedom comparison by year

Lebanon
Netherlands
1x
Year Economic freedom index
Lebanon Netherlands
2026 43.1 78.5
2025 44.1 78.2
2024 48.3 77.3
2023 45.6 78
2022 47.3 79.5
2021 51.4 76.8
2020 51.7 77
2019 51.1 76.8
2018 53.2 76.2
2017 53.3 75.8
2016 59.5 74.6
2015 59.3 73.7
2014 59.4 74.2
2013 59.5 73.5
2012 60.1 73.3
2011 60.1 74.7
2010 59.5 75
2009 58.1 77
2008 60 77.4
2007 60.4 75.5
2006 57.5 75.4
2005 57.2 72.9
2004 56.9 74.5
2003 56.7 74.6
2002 57.1 75.1
2001 61 73
2000 56.1 70.4
1999 59.1 70.2
1998 59 69.2
1997 63.9 70.4
1996 63.2 69.7

Data sources: The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-03-09).

GeoRank.org/economy/lebanon/netherlands | CC BY

The Economic Freedom Index for Lebanon is 43.1, ranking 183/197, compared to 78.5 for the Netherlands, ranking 11/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Lebanon Netherlands
Services, % of GDP
42.4%
2023
70.5%
2024
Industry, % of GDP
2.09%
2023
17.5%
2024
Agriculture, forestry, and fishing, % of GDP
0.97%
2023
1.73%
2024
GNI, Atlas method
$21.4B
2023
$1.12T
2024
GNI per capita, PPP
$12,420
2023
$84,970
2024
Total reserves including gold
$33.3B
2024
$79.1B
2024
Total reserves ranking
54/177
2024
34/177
2024
Net foreign direct investment
-$583M
2023
$11.1B
2024
Net inflows of foreign direct investment
$1.84B
2024
-$17.1B
2024
Net outflows of foreign direct investment
$391M
2024
-$5.93B
2024
Servicing debt to the IMF, % of GNI
22%
2023
n/a
Poverty at national poverty lines
27.4%
2012
14.5%
2021
Gross capital formation, % of GDP
1.9%
2023
19.7%
2024

GDP per capita map

1x

Data sources: World Bank | Economy & Growth (1985–2024, retrieved 2026-04-06); U.S. Census Bureau (1985–2024, retrieved 2026-02-08).

GeoRank.org/economy/lebanon/netherlands | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06)
  2. International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20)
  3. International Monetary Fund (IMF) | Public Finances in Modern History (1880–1999, retrieved 2026-02-20)
  4. The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-03-09)
  5. U.S. Census Bureau (1985–2024, retrieved 2026-02-08)
  6. TradeMap (2023–2024, retrieved 2026-02-08)
  7. United Nations | World Population Prospects (2026, retrieved 2026-03-10)
  8. LivingCost (2026, retrieved 2025-10-14)

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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.