The Marshall Islands has a GDP of $280M compared to $26.4B for Trinidad and Tobago, ranking 194/197 and 114/197 by economy size, respectively.
The Marshall Islands has $46.8M in government debt (15.3% of GDP), compared to $17B (67.2% of GDP) in Trinidad and Tobago.
The chart below compares the two countries' GDP growth in both current (nominal) and constant dollars, accounting for inflation over time.
| Year | GDP | |||
|---|---|---|---|---|
Marshall Islands
|
Trinidad
|
|||
| Current $ | Constant $ | Current $ | Constant $ | |
| 1960 | - | - | $535,673,252 | $3,630,222,802 |
| 1961 | - | - | $584,964,621 | $4,139,799,750 |
| 1962 | - | - | $619,322,810 | $4,253,332,232 |
| 1963 | - | - | $678,239,329 | $4,491,714,373 |
| 1964 | - | - | $711,897,520 | $4,834,454,628 |
| 1965 | - | - | $736,573,159 | $4,867,998,505 |
| 1966 | - | - | $723,739,857 | $5,065,484,518 |
| 1967 | - | - | $761,981,912 | $5,168,947,937 |
| 1968 | - | - | $758,899,950 | $5,438,515,892 |
| 1969 | - | - | $779,200,000 | $5,587,024,608 |
| 1970 | $8,408,486 | $45,931,280 | $821,850,000 | $5,784,449,703 |
| 1971 | $9,116,810 | $46,992,252 | $896,765,215 | $5,844,627,406 |
| 1972 | $9,973,652 | $47,500,634 | $1,083,391,758 | $6,182,467,140 |
| 1973 | $11,607,366 | $63,614,160 | $1,308,785,431 | $6,284,874,810 |
| 1974 | $15,217,532 | $73,361,848 | $2,042,001,071 | $6,524,177,955 |
| 1975 | $16,691,301 | $73,406,056 | $2,442,669,825 | $6,620,603,046 |
| 1976 | $18,153,647 | $73,671,297 | $2,500,424,955 | $7,044,662,296 |
| 1977 | $20,210,069 | $75,461,688 | $3,138,666,667 | $7,687,261,624 |
| 1978 | $22,209,370 | $79,705,581 | $3,562,333,458 | $8,457,254,686 |
| 1979 | $25,545,346 | $81,407,557 | $4,602,416,625 | $8,761,662,363 |
| 1980 | $26,710,653 | $75,550,102 | $6,235,833,333 | $9,672,070,064 |
| 1981 | $31,020,000 | $80,412,894 | $6,992,083,333 | $10,114,780,883 |
| 1982 | $34,918,000 | $84,297,825 | $8,140,416,667 | $10,499,073,581 |
| 1983 | $41,749,000 | $97,370,735 | $7,763,750,000 | $9,417,634,514 |
| 1984 | $45,144,000 | $101,135,112 | $7,757,083,333 | $8,876,035,190 |
| 1985 | $43,879,000 | $94,806,793 | $7,375,918,367 | $8,510,394,061 |
| 1986 | $55,989,000 | $118,074,749 | $4,794,444,444 | $8,231,324,363 |
| 1987 | $62,983,000 | $129,130,978 | $4,797,777,778 | $7,855,829,575 |
| 1988 | $70,688,000 | $139,189,050 | $4,496,910,569 | $7,547,902,734 |
| 1989 | $72,798,000 | $136,834,516 | $4,323,058,824 | $7,485,261,616 |
| 1990 | $78,476,000 | $140,496,545 | $5,068,000,000 | $7,598,226,778 |
| 1991 | $82,507,000 | $140,619,900 | $5,307,905,882 | $7,834,714,586 |
| 1992 | $91,063,000 | $150,661,400 | $5,439,552,941 | $8,625,470,724 |
| 1993 | $99,461,000 | $159,710,500 | $4,669,491,134 | $8,567,756,425 |
| 1994 | $108,071,000 | $169,097,800 | $4,947,181,646 | $8,873,383,771 |
| 1995 | $120,230,000 | $182,986,300 | $5,329,217,747 | $9,211,451,985 |
| 1996 | $110,858,000 | $164,133,300 | $5,759,570,336 | $9,868,640,951 |
| 1997 | $109,884,700 | $153,553,800 | $5,737,771,523 | $10,611,044,464 |
| 1998 | $112,070,100 | $152,518,700 | $6,043,686,654 | $11,473,145,562 |
| 1999 | $113,352,100 | $150,483,000 | $6,808,982,521 | $12,393,844,571 |
| 2000 | $114,838,500 | $154,176,500 | $8,154,342,116 | $13,249,188,352 |
| 2001 | $122,406,100 | $164,861,000 | $8,824,849,191 | $13,801,483,946 |
| 2002 | $131,960,000 | $170,855,000 | $9,008,298,229 | $14,896,867,659 |
| 2003 | $131,128,500 | $168,186,800 | $11,305,459,802 | $17,048,122,760 |
| 2004 | $132,900,000 | $167,500,000 | $13,280,291,990 | $18,403,457,301 |
| 2005 | $138,000,000 | $170,500,000 | $15,982,389,018 | $19,546,116,532 |
| 2006 | $143,200,000 | $170,800,000 | $18,369,361,094 | $22,127,779,059 |
| 2007 | $150,500,000 | $177,100,000 | $21,641,620,050 | $23,179,780,078 |
| 2008 | $146,600,000 | $163,700,000 | $27,871,587,350 | $23,965,977,273 |
| 2009 | $151,200,000 | $169,700,000 | $19,172,165,226 | $22,913,456,440 |
| 2010 | $161,100,000 | $179,100,000 | $22,157,920,592 | $23,674,922,086 |
| 2011 | $172,300,000 | $178,200,000 | $25,433,007,437 | $23,605,233,909 |
| 2012 | $180,700,000 | $175,900,000 | $27,147,349,937 | $25,189,164,853 |
| 2013 | $186,400,000 | $182,600,000 | $28,560,536,917 | $26,031,643,292 |
| 2014 | $186,000,000 | $180,300,000 | $29,474,180,442 | $26,993,607,567 |
| 2015 | $183,700,000 | $183,700,000 | $26,841,143,095 | $26,841,143,095 |
| 2016 | $201,800,000 | $188,300,000 | $23,624,333,664 | $24,853,971,610 |
| 2017 | $213,700,000 | $195,000,000 | $23,847,765,529 | $23,656,360,891 |
| 2018 | $220,000,000 | $205,700,000 | $23,888,910,152 | $23,423,221,520 |
| 2019 | $232,900,000 | $227,200,000 | $23,588,037,787 | $23,533,735,415 |
| 2020 | $241,800,000 | $220,900,000 | $20,991,339,707 | $21,438,575,322 |
| 2021 | $258,900,000 | $223,600,000 | $24,177,305,760 | $21,243,057,044 |
| 2022 | $253,400,000 | $221,100,000 | $28,510,328,245 | $21,472,954,153 |
| 2023 | $259,300,000 | $212,400,000 | $25,489,373,405 | $21,779,397,559 |
| 2024 | $280,357,844 | $218,285,536 | $26,428,963,758 | $22,138,889,024 |
Economic indicators
|
Marshall Islands
|
Trinidad
|
|
|---|---|---|
| Gross domestic product |
$280M
2024 |
$26.4B
2024 |
| GDP rank |
194/197
2024 |
114/197
2024 |
| GDP growth |
8.12%
2023-2024 |
3.69%
2023-2024 |
| GDP per capita |
$7,467
2024 |
$19,315
2024 |
| GDP per capita rank |
100/197
2024 |
60/197
2024 |
| GDP per capita, PPP |
$8,198
2024 |
$36,021
2024 |
| Government debt |
$46.8M
2024 |
$17B
2024 |
| Debt-to-GDP ratio |
15.3%
2025 |
67.2%
2025 |
| Government debt per person |
$1,245
2024 |
$12,454
2024 |
| Government debt per person rank |
136/185
2024 |
45/185
2024 |
| Average annual personal income after taxes |
$5,868
2025 |
$11,432
2025 |
| Market capitalization of domestic companies | n/a |
$3.89B
2001 |
| Income share by richest 10% |
27.5%
2019 |
29.9%
1992 |
| Income share by poorest 10% |
2.8%
2019 |
2.1%
1992 |
| Government expenditure, % of GDP |
71.9%
2025 |
32.4%
2025 |
| Consumer prices inflation |
5.2%
2024-2025 |
0.53%
2023-2024 |
| Central bank interest rate | n/a |
3.5%
2020 |
| Unemployment rate |
9.82%
2021 |
3.36%
2023 |
| Population |
36281
|
1372940
|
GDP per capita in Marshall Islands vs Trinidad and Tobago
The Marshall Islands' GDP per capita is $7,467, ranking 100/197, compared to $19,315 in Trinidad and Tobago, ranking 60/197. Adjusted for purchasing power (GDP per capita PPP), the Marshall Islands ranks 137th at $8,198, while Trinidad and Tobago ranks 62nd at $36,021.
| Year | Current $ | |||
|---|---|---|---|---|
|
Marshall Islands
|
Trinidad
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 1960 | - | - | $634 | - |
| 1961 | - | - | $678 | - |
| 1962 | - | - | $704 | - |
| 1963 | - | - | $756 | - |
| 1964 | - | - | $780 | - |
| 1965 | - | - | $793 | - |
| 1966 | - | - | $768 | - |
| 1967 | - | - | $797 | - |
| 1968 | - | - | $783 | - |
| 1969 | - | - | $795 | - |
| 1970 | $373 | - | $829 | - |
| 1971 | $390 | - | $894 | - |
| 1972 | $416 | - | $1,067 | - |
| 1973 | $472 | - | $1,273 | - |
| 1974 | $602 | - | $1,962 | - |
| 1975 | $638 | - | $2,319 | - |
| 1976 | $672 | - | $2,345 | - |
| 1977 | $724 | - | $2,907 | - |
| 1978 | $771 | - | $3,258 | - |
| 1979 | $859 | - | $4,155 | - |
| 1980 | $868 | - | $5,559 | - |
| 1981 | $969 | - | $6,160 | - |
| 1982 | $1,046 | - | $7,091 | - |
| 1983 | $1,199 | - | $6,690 | - |
| 1984 | $1,245 | - | $6,613 | - |
| 1985 | $1,162 | - | $6,212 | - |
| 1986 | $1,425 | - | $3,985 | - |
| 1987 | $1,543 | - | $3,941 | - |
| 1988 | $1,670 | - | $3,656 | - |
| 1989 | $1,670 | - | $3,482 | - |
| 1990 | $1,758 | $2,102 | $4,047 | $6,878 |
| 1991 | $1,811 | $2,131 | $4,205 | $7,274 |
| 1992 | $1,963 | $2,293 | $4,277 | $8,129 |
| 1993 | $2,112 | $2,452 | $3,647 | $8,209 |
| 1994 | $2,265 | $2,617 | $3,840 | $8,631 |
| 1995 | $2,491 | $2,858 | $4,115 | $9,099 |
| 1996 | $2,273 | $2,583 | $4,427 | $9,883 |
| 1997 | $2,231 | $2,434 | $4,394 | $10,769 |
| 1998 | $2,254 | $2,422 | $4,613 | $11,735 |
| 1999 | $2,258 | $2,400 | $5,179 | $12,812 |
| 2000 | $2,265 | $2,490 | $6,179 | $13,953 |
| 2001 | $2,394 | $2,700 | $6,657 | $14,797 |
| 2002 | $2,566 | $2,825 | $6,763 | $16,141 |
| 2003 | $2,539 | $2,824 | $8,445 | $18,743 |
| 2004 | $2,566 | $2,880 | $9,871 | $20,674 |
| 2005 | $2,659 | $3,017 | $12,346 | $23,536 |
| 2006 | $2,754 | $3,110 | $14,153 | $27,393 |
| 2007 | $2,892 | $3,309 | $16,607 | $29,355 |
| 2008 | $2,818 | $3,118 | $21,299 | $30,807 |
| 2009 | $2,907 | $3,253 | $14,634 | $29,602 |
| 2010 | $3,095 | $3,473 | $16,815 | $30,778 |
| 2011 | $3,319 | $3,537 | $19,151 | $31,078 |
| 2012 | $3,514 | $3,590 | $20,332 | $31,883 |
| 2013 | $3,678 | $3,845 | $21,305 | $31,746 |
| 2014 | $3,735 | $3,931 | $21,908 | $32,027 |
| 2015 | $3,764 | $4,125 | $19,887 | $29,825 |
| 2016 | $4,230 | $4,366 | $17,449 | $28,232 |
| 2017 | $4,593 | $4,719 | $17,579 | $28,505 |
| 2018 | $4,858 | $5,232 | $17,576 | $28,680 |
| 2019 | $5,292 | $6,045 | $17,293 | $29,454 |
| 2020 | $5,662 | $6,137 | $15,359 | $26,863 |
| 2021 | $6,259 | $6,706 | $17,679 | $30,425 |
| 2022 | $6,323 | $7,332 | $20,874 | $32,989 |
| 2023 | $6,678 | $7,532 | $18,639 | $34,620 |
| 2024 | $7,467 | $8,198 | $19,315 | $36,021 |
Spending and national debt comparison
In 2024, the Marshall Islands' government spending was $201M, accounting for 71.9% of its GDP, while Trinidad and Tobago's spent $8.51B, or 32.4% of GDP.
Debt-to-GDP ratio is 15.3% in the Marshall Islands and 67.2% in Trinidad and Tobago, ranking 176/185 and 63/185, respectively.
| Year | % of GDP | |||
|---|---|---|---|---|
|
Marshall Islands
|
Trinidad
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 1988 | - | - | 45.3% | 65.3% |
| 1989 | - | - | 30.9% | 51.9% |
| 1990 | - | - | 26.9% | 47.7% |
| 1991 | - | - | 29.6% | 49.5% |
| 1992 | - | - | 28.6% | 49.2% |
| 1993 | - | - | 26.9% | 58.8% |
| 1994 | - | - | 25.4% | 52.6% |
| 1995 | - | - | 26.2% | 50.1% |
| 1996 | - | - | 27.6% | 47% |
| 1997 | 55% | 8.73% | 27.2% | 46.1% |
| 1998 | 50.5% | 18.1% | 26.9% | 42.8% |
| 1999 | 48.7% | 26.1% | 24.1% | 42.2% |
| 2000 | 56.5% | 27.3% | 23.1% | 38.9% |
| 2001 | 58.8% | 32.7% | 24.8% | 36.6% |
| 2002 | 55.2% | 37.2% | 24.4% | 37% |
| 2003 | 52.9% | 43.7% | 22.2% | 30.2% |
| 2004 | 54.5% | 46.8% | 22.5% | 24.2% |
| 2005 | 85.3% | 45.8% | 26.7% | 19.8% |
| 2006 | 61.2% | 44.4% | 31.6% | 16.9% |
| 2007 | 67.2% | 42.2% | 25.7% | 16.2% |
| 2008 | 64.3% | 44.1% | 26.7% | 13.5% |
| 2009 | 63.1% | 41.2% | 37% | 20.7% |
| 2010 | 59.2% | 38.8% | 30.4% | 16.8% |
| 2011 | 55.9% | 35.9% | 29.4% | 26.4% |
| 2012 | 53.2% | 37.6% | 29.5% | 21.8% |
| 2013 | 55% | 33.4% | 31.3% | 21.6% |
| 2014 | 49.2% | 34.9% | 32.8% | 23.5% |
| 2015 | 56.3% | 33.9% | 35% | 27.1% |
| 2016 | 56.8% | 29.2% | 31.9% | 35.4% |
| 2017 | 63.7% | 26.5% | 30.7% | 39.8% |
| 2018 | 60.5% | 24.7% | 30.2% | 41.5% |
| 2019 | 65.5% | 25.1% | 31% | 46% |
| 2020 | 67.8% | 21.7% | 36% | 62.2% |
| 2021 | 69.8% | 20.1% | 30.4% | 58.5% |
| 2022 | 67.7% | 19.8% | 27.1% | 51% |
| 2023 | 66% | 18.7% | 32.9% | 61.1% |
| 2024 | 71.8% | 16.7% | 32.2% | 64.5% |
| 2025 | 71.9% | 15.3% | 32.4% | 67.2% |
Government deficit by year
In 2024, the Marshall Islands' government surplus, the difference between spending and revenue, was $1.65M, equivalent to 0.59% of GDP. This compares to Trinidad and Tobago's deficit of -$1.57B, or -5.92% of GDP.
Over the past 28 years, the Marshall Islands recorded a fiscal deficit in 5 of those years, while Trinidad and Tobago ran a deficit in 17 years. On average, the Marshall Islands posted an annual surplus equal to +2.43% of GDP, compared to deficit of -2.29% of GDP for Trinidad and Tobago.
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Marshall Islands
|
Trinidad
|
|
| 1988 | - | -9.34% |
| 1989 | - | -4.46% |
| 1990 | - | -1.27% |
| 1991 | - | -0.21% |
| 1992 | - | -2.74% |
| 1993 | - | 0.23% |
| 1994 | - | -0.02% |
| 1995 | - | 0.17% |
| 1996 | - | -0.45% |
| 1997 | 7.91% | 0.11% |
| 1998 | 13.5% | -1.8% |
| 1999 | 9.01% | -0.88% |
| 2000 | 7.84% | 0.17% |
| 2001 | 7.83% | 0.61% |
| 2002 | 5.12% | -0.2% |
| 2003 | 10.5% | 1.8% |
| 2004 | -1.6% | 1.84% |
| 2005 | -22.3% | 2.36% |
| 2006 | 0.24% | 1.56% |
| 2007 | 0.27% | 3.12% |
| 2008 | 3.68% | 5.39% |
| 2009 | 1.51% | -5.42% |
| 2010 | 3.51% | 0.13% |
| 2011 | 2.13% | -0.67% |
| 2012 | -0.76% | -1.26% |
| 2013 | -0.23% | -2.67% |
| 2014 | 3.2% | -4.31% |
| 2015 | 2.81% | -7.56% |
| 2016 | 3.88% | -10.1% |
| 2017 | 4.38% | -10.4% |
| 2018 | 2.55% | -5.89% |
| 2019 | -1.8% | -3.72% |
| 2020 | 2.54% | -12.1% |
| 2021 | 0.18% | -8.1% |
| 2022 | 0.68% | 0.92% |
| 2023 | 0.69% | -1.19% |
| 2024 | 0.59% | -5.92% |
| 2025 | 0.51% | -3.39% |
Inflation comparison by year
Over the past 21 years, the Marshall Islands has recorded an average annual inflation rate of 2.72%, compared with 5.09% in Trinidad and Tobago. In 2024, inflation was 5.2% in the Marshall Islands and 0.53% in Trinidad and Tobago.
| Year | Inflation | ||
|---|---|---|---|
|
Marshall Islands
|
Trinidad
|
Marshall Islands
|
Trinidad
|
| 1996 | - | 3.4% | |
| 1997 | - | 3.63% | |
| 1998 | - | 5.61% | |
| 1999 | - | 3.44% | |
| 2000 | - | 3.56% | |
| 2001 | - | 5.54% | |
| 2002 | - | 4.15% | |
| 2003 | - | 3.81% | |
| 2004 | 2% | 3.72% | |
| 2005 | 3.5% | 6.87% | |
| 2006 | 5.3% | 8.33% | |
| 2007 | 2.6% | 7.89% | |
| 2008 | 14.7% | 12% | |
| 2009 | 0.5% | 6.98% | |
| 2010 | 1.8% | 10.5% | |
| 2011 | 5.4% | 5.11% | |
| 2012 | 4.3% | 9.26% | |
| 2013 | 1.9% | 5.2% | |
| 2014 | 1.1% | 5.68% | |
| 2015 | -2.2% | 4.66% | |
| 2016 | -1.5% | 3.07% | |
| 2017 | 0.1% | 1.88% | |
| 2018 | 0.8% | 1.02% | |
| 2019 | -0.1% | 1% | |
| 2020 | -0.7% | 0.6% | |
| 2021 | 2.2% | 2.06% | |
| 2022 | 2.8% | 5.83% | |
| 2023 | 7.4% | 4.63% | |
| 2024 | 5.2% | 0.53% | |
| 2025 | 5.2% | - | |
Top exports between countries
|
Marshall Islands
|
|
|---|---|
| Export category | Export value |
| Metals | $44K |
| Textiles & consumer goods | $34K |
|
Trinidad
|
|
|---|---|
| Export category | Export value |
| Machinery & equipment | $12.8M |
| Raw materials & minerals | $1.33M |
| Chemicals & pharma | $119K |
| Processed food, beverages & tobacco | $15K |
| Animal & marine products | $12K |
| Raw agricultural goods | $7K |
| Textiles & consumer goods | $7K |
| Miscellaneous | $1K |
Balance of trade
|
Marshall Islands
|
Trinidad
|
|
|---|---|---|
Current account balance
|
$76.3M
2021 |
$1.23B
2024 |
| Current account balance ranking |
69/189
2021 |
52/189
2024 |
| Current account balance, % of GDP |
+29.5%
2021 |
+4.67%
2024 |
| Goods imports |
$133M
2021 |
$7.54B
2024 |
| Goods exports |
$121M
2021 |
$10B
2024 |
| Service imports |
$73.1M
2021 |
$2.71B
2024 |
| Service exports |
$9.44M
2021 |
$1.26B
2024 |
| Imports of goods and services, % of GDP |
71.2%
2023 |
n/a |
| Exports of goods and services, % of GDP |
38.9%
2023 |
45%
2025 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Marshall Islands
|
Trinidad
|
|
|---|---|---|
| Economic freedom | 58 | 63.6 |
| Economic freedom ranking | 110/197 | 76/197 |
| Property rights | n/a | 58.3 |
| Government integrity | n/a | 44.7 |
| Judicial effectiveness | n/a | 58.5 |
| Tax burden | n/a | 79.5 |
| Government spending | n/a | 74.5 |
| Fiscal health | n/a | 80.9 |
| Business freedom | n/a | 72.6 |
| Labor freedom | n/a | 60.4 |
| Monetary freedom | n/a | 76.3 |
| Trade freedom | n/a | 67.6 |
| Investment freedom | n/a | 50 |
| Financial freedom | n/a | 40 |
More economic indicators
|
Marshall Islands
|
Trinidad
|
|
|---|---|---|
| Services, % of GDP |
70.5%
2023 |
59.9%
2023 |
| Industry, % of GDP |
11.1%
2023 |
35%
2023 |
| Agriculture, forestry, and fishing, % of GDP |
19.5%
2023 |
0.82%
2023 |
|
GNI, Atlas method
|
$315M
2024 |
$27.4B
2024 |
| GNI per capita, PPP |
$9,720
2024 |
$36,280
2024 |
| Total reserves including gold | n/a |
$5.6B
2024 |
| Total reserves ranking | n/a |
94/177
2024 |
|
Net foreign direct investment
|
-$499K
2021 |
$1.57B
2024 |
|
Net inflows of foreign direct investment
|
$1.7M
2024 |
-$1.04B
2024 |
|
Net outflows of foreign direct investment
|
$2.94M
2006 |
$527M
2024 |
| Poverty at national poverty lines |
7.2%
2019 |
20%
2020 |
|
Gross capital formation, % of GDP
|
19.7%
2023 |
20.1%
2021 |
GDP per capita map
GDP per capita
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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.