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Economy of Netherlands vs Saint Lucia compared: GDP & Debt

Updated on by Georank

The Netherlands has a GDP of $1.33T compared to $2.66B for Saint Lucia, ranking 18/197 and 173/197 by economy size, respectively.

The Netherlands has $578B in government debt (43.3% of GDP), compared to $2.05B (77.1% of GDP) in Saint Lucia.

Netherlands vs Saint Lucia GDP by year

Netherlands
Saint Lucia
1x
Year GDP, current $
Netherlands Saint Lucia
2025 $1,332,767,651,100 $2,656,444,444
2024 $1,213,936,238,063 $2,605,148,148
2023 $1,135,475,867,551 $2,441,259,259
2022 $1,046,540,797,549 $2,319,888,889
2021 $1,054,472,123,450 $1,871,111,111
2020 $932,560,861,701 $1,521,740,741
2019 $928,903,005,576 $2,090,074,074
2018 $929,733,599,797 $2,060,955,556
2017 $848,233,537,846 $1,998,503,704
2016 $797,163,949,290 $1,868,544,444
2015 $775,743,675,303 $1,807,640,741
2014 $901,556,501,756 $1,749,185,185
2013 $883,951,539,007 $1,660,392,593
2012 $845,689,017,066 $1,598,207,407
2011 $913,140,741,333 $1,568,370,370
2010 $852,464,982,433 $1,482,385,185
2009 $878,954,223,140 $1,401,507,889
2008 $957,901,566,041 $1,437,731,111
2007 $853,499,460,873 $1,336,088,815
2006 $737,593,995,289 $1,268,319,185
2005 $688,133,699,636 $1,135,555,556
2004 $661,224,886,143 $1,066,666,667
2003 $582,435,617,082 $987,407,407
2002 $475,529,972,123 $900,000,000
2001 $432,536,219,669 $892,592,593
2000 $417,649,282,154 $932,592,593
1999 $447,778,514,140 $921,851,852
1998 $438,612,530,549 $877,407,407
1997 $417,506,211,882 $805,925,926
1996 $451,372,549,020 $788,888,889
1995 $452,967,334,614 $762,962,963
1994 $379,688,232,232 $713,703,704
1993 $354,070,495,966 $684,814,815
1992 $363,497,050,125 $674,074,074
1991 $327,982,316,124 $613,703,704
1990 $318,799,003,994 $579,629,630
1989 $258,716,904,292 $486,666,667
1988 $262,295,966,105 $429,629,630
1987 $245,406,949,521 $375,555,556
1986 $201,157,708,221 $340,000,000
1985 $144,057,523,222 $284,444,444
1984 $144,124,462,912 $251,481,481
1983 $153,671,294,109 $197,037,037
1982 $158,712,765,536 $183,333,333
1981 $164,375,775,854 $194,444,444
1980 $195,439,301,707 $170,370,370
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 (1960–2025, retrieved 2026-07-08).

GeoRank.org/economy/netherlands/saint-lucia | CC BY

GDP per capita in Netherlands vs Saint Lucia by year

Netherlands
GDP per capita

GDP per capita, PPP
Saint Lucia
GDP per capita

GDP per capita, PPP
1x
Year Current $
Netherlands Saint Lucia
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $73,684 - $14,746 -
2024 $67,465 $86,174 $14,494 $27,567
2023 $63,516 $81,729 $13,617 $25,975
2022 $59,123 $78,630 $12,976 $24,599
2021 $60,142 $68,574 $10,481 $19,101
2020 $53,468 $62,597 $8,537 $14,912
2019 $53,555 $62,345 $11,764 $18,710
2018 $53,955 $58,819 $11,643 $17,433
2017 $49,514 $56,038 $11,333 $16,131
2016 $46,809 $53,162 $10,638 $15,307
2015 $45,794 $50,957 $10,335 $14,353
2014 $53,457 $49,751 $10,045 $14,403
2013 $52,602 $49,622 $9,577 $14,010
2012 $50,474 $47,653 $9,260 $13,443
2011 $54,702 $47,004 $9,129 $13,471
2010 $51,306 $45,301 $8,674 $12,718
2009 $53,172 $44,959 $8,251 $12,600
2008 $58,247 $46,714 $8,517 $12,969
2007 $52,101 $44,203 $7,964 $12,199
2006 $45,124 $41,208 $7,611 $11,758
2005 $42,165 $37,778 $6,863 $10,818
2004 $40,611 $35,961 $6,495 $10,610
2003 $35,897 $34,286 $6,059 $9,707
2002 $29,447 $34,568 $5,568 $9,205
2001 $26,956 $33,259 $5,570 $9,106
2000 $26,225 $31,895 $5,880 $9,314
1999 $28,319 $29,316 $5,883 $9,214
1998 $27,924 $27,749 $5,673 $8,965
1997 $26,745 $26,062 $5,282 $8,456
1996 $29,064 $24,564 $5,244 $8,490
1995 $29,301 $23,480 $5,148 $8,222
1994 $24,683 $22,414 $4,892 $8,041
1993 $23,156 $21,443 $4,765 $7,865
1992 $23,939 $20,831 $4,760 $7,753
1991 $21,764 $20,177 $4,399 $7,127
1990 $21,322 $19,203 $4,205 $6,951
1989 $17,423 - $3,565 -
1988 $17,771 - $3,182 -
1987 $16,734 - $2,819 -
1986 $13,804 - $2,591 -
1985 $9,941 - $2,202 -
1984 $9,992 - $1,979 -
1983 $10,696 - $1,576 -
1982 $11,089 - $1,489 -
1981 $11,537 - $1,605 -
1980 $13,812 - $1,428 -
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 (1960–2025, retrieved 2026-07-08).

GeoRank.org/economy/netherlands/saint-lucia | CC BY

The Netherlands' GDP per capita is $73,684, ranking 12/197, compared to $14,746 in Saint Lucia, ranking 72/197. Adjusted for purchasing power (GDP per capita PPP), the Netherlands ranks 11th at $86,174, while Saint Lucia ranks 75th at $27,567.

Economic indicators

Netherlands Saint Lucia
Gross domestic product
$1.33T
2025
$2.66B
2025
GDP rank
18/197
2025
173/197
2025
GDP growth
1.78%
2024-2025
-0.57%
2024-2025
GDP per capita
$73,684
2025
$14,746
2025
GDP per capita rank
12/197
2025
72/197
2025
GDP per capita, PPP
$86,174
2024
$27,567
2024
GDP per capita PPP rank
11/197
2024
75/197
2024
Government debt
$578B
2025
$2.05B
2025
Debt-to-GDP ratio
43.3%
2025
77.1%
2025
Government debt per person
$31,942
2025
$11,365
2025
Government debt per person rank
23/185
2025
53/185
2025
Average annual personal income after taxes
$46,674
2026
$12,464
2026
Market capitalization of domestic companies
$1.1T
2017
n/a
Number of millionaires
1,294,000
2026
n/a
Number of billionaires
13
2026
n/a
Income share by richest 10%
21.4%
2021
34.1%
2015
Income share by poorest 10%
3.6%
2021
2.1%
2015
Government expenditure, % of GDP
45.1%
2025
25.2%
2025
Consumer prices inflation
3.26%
2024-2025
2.03%
2024-2025
Unemployment rate
3.9%
2025
7.66%
2025
Population
18243998
180676

Spending and national debt comparison by year

Netherlands
Spending

Debt
Saint Lucia
Spending

Debt
1x
Year % of GDP
Netherlands Saint Lucia
Government spending Government debt Government spending Government debt
2025 45.1% 43.3% 25.2% 77.1%
2024 44.4% 43.7% 24.4% 76.7%
2023 44% 45.8% 25.3% 75.2%
2022 43.3% 48.4% 23.8% 73.9%
2021 45.9% 50.5% 26.7% 81.9%
2020 47.8% 53.4% 33.1% 94.4%
2019 42.1% 47.7% 24.6% 62.1%
2018 42.4% 51.6% 23.2% 60.3%
2017 42.8% 56% 23% 59.9%
2016 43.9% 60.9% 22.6% 60.2%
2015 45.3% 63.8% 22.1% 60.6%
2014 46.7% 67.2% 22.6% 61.9%
2013 47.5% 67.2% 24.3% 61.2%
2012 47.6% 65.7% 27.1% 60.2%
2011 47.8% 61.2% 26.9% 54.9%
2010 48.9% 58.9% 25.6% 52.2%
2009 48.4% 56.3% 24.2% 50.2%
2008 44.3% 54.4% 22.3% 46.9%
2007 43.3% 42.7% 22.2% 48.2%
2006 44% 45% 24.4% 48%
2005 43.4% 49.6% 25.3% 50.4%
2004 44.7% 50.1% 22.5% 48.8%
2003 45.8% 49.8% 22.5% 44.7%
2002 44.8% 48.7% 23% 47.7%
2001 44.1% 49.4% 22% 38%
2000 43.2% 52.2% 20.9% 32.8%
1999 44.3% 58.6% 20.9% 28.8%
1998 44.6% 62.7% 18.6% 29.1%
1997 45.7% 65.7% 19% 26.6%
1996 47.3% 71.2% 18.8% 23.9%
1995 53.9% 73% 19% 22.7%
1994 49.4% 73.5% 18.7% 23.4%
1993 50.9% 76.7% 21.6% 22.7%
1992 50.2% 75.6% 18.3% 22.1%
1991 49.6% 74.8% 18% 19.3%
1990 48.8% 75% 16.5% 16.7%
1989 54.5% 73.7% 19% 18.1%
1988 56.4% 73.7% 18.2% 18.6%
1987 58.5% 71.3% 19.9% 19.6%
1986 57% 68.9% 21.1% 17.2%
1985 57.3% 67.1% 20.4% 17.1%
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 (1990–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1989, retrieved 2026-07-08).

GeoRank.org/economy/netherlands/saint-lucia | CC BY

In 2025, the Netherlands' government spending was $602B, accounting for 45.1% of its GDP, while Saint Lucia spent $671M, or 25.2% of GDP.

Debt-to-GDP ratio is 43.3% in the Netherlands and 77.1% in Saint Lucia, ranking 121/185 and 48/185, respectively.

Government deficit by year

Deficit/surplus
Netherlands

Saint Lucia
1x
Year Deficit/surplus, % of GDP
Netherlands Saint Lucia
2025 -1.84% -2.88%
2024 -0.94% -1.81%
2023 -0.37% -3.18%
2022 0.002% -2.48%
2021 -2.26% -5.35%
2020 -3.72% -11.5%
2019 1.91% -2.95%
2018 1.49% -1.22%
2017 1.35% -2.09%
2016 0.23% -1.53%
2015 -1.84% -1.18%
2014 -2.17% -2.29%
2013 -2.87% -3.98%
2012 -3.83% -6.93%
2011 -4.42% -5.35%
2010 -5.3% -4.11%
2009 -5.06% -2.63%
2008 -0.06% -0.72%
2007 -0.16% -1.59%
2006 0.04% -5.01%
2005 -0.51% -6%
2004 -1.82% -2.58%
2003 -3.19% -3.17%
2002 -2.23% -3.03%
2001 -0.47% -3.07%
2000 1.14% -1.17%
1999 0.28% 1.61%
1998 -1.34% 2.22%
1997 -1.6% -1.1%
1996 -1.91% -0.57%
1995 -8.72% -0.13%
1994 -3.53% -0.02%
1993 -3.13% -0.25%
1992 -3.12% -0.66%
1991 -2.05% -0.42%
1990 -4.08% 0.29%
1989 -5% 0.89%
1988 -4.23% 2.02%
1987 -5.39% 0.56%
1986 -4.62% -1.61%
1985 -3.6% -1.5%
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 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08).

GeoRank.org/economy/netherlands/saint-lucia | CC BY

In 2025, the Netherlands' government deficit, the difference between spending and revenue, was $24.5B, equivalent to 1.84% of GDP. This compares to Saint Lucia's deficit of $76.5M, or 2.88% of GDP.

Over the past 41 years, the Netherlands recorded a fiscal deficit in 33 of those years, while Saint Lucia ran a deficit in 35 years. On average, the Netherlands posted an annual deficit equal to 2.17% of GDP, compared to deficit of 2.11% of GDP for Saint Lucia.

Inflation comparison by year

Inflation
Netherlands

Saint Lucia
1x
Year Consumer prices inflation
Netherlands Saint Lucia
2025 3.26% 2.03%
2024 3.35% -0.67%
2023 3.84% 3.82%
2022 10% 9.65%
2021 2.68% 2.41%
2020 1.27% -1.76%
2019 2.63% 0.54%
2018 1.7% 1.94%
2017 1.38% 0.1%
2016 0.32% -3.08%
2015 0.6% -0.98%
2014 0.98% 3.52%
2013 2.51% 1.47%
2012 2.46% 4.18%
2011 2.34% 2.77%
2010 1.28% 3.25%
2009 1.19% -0.16%
2008 2.49% 5.55%
2007 1.61% 2.82%
2006 1.1% 2.4%
2005 1.69% 3.9%
2004 1.26% 1.46%
2003 2.09% 1.03%
2002 3.29% -0.26%
2001 4.16% 5.31%
2000 2.36% 3.71%
1999 2.16% 3.5%
1998 1.96% 3.2%
1997 2.11% -0.006%

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

GeoRank.org/economy/netherlands/saint-lucia | CC BY

Over the past 29 years, the Netherlands has recorded an average annual inflation rate of 2.35%, compared with 2.13% in Saint Lucia. In 2025, inflation was 3.26% in the Netherlands and 2.03% in Saint Lucia.

Top exports between countries

Netherlands
Export category Export value
Machinery & equipment $4.51M
Processed food, beverages & tobacco $3.72M
Metals $2.11M
Raw agricultural goods $850K
Textiles & consumer goods $701K
Animal & marine products $679K
Chemicals & pharma $517K
Miscellaneous $274K
Raw materials & minerals $243K
Wood & paper products $67K
Saint Lucia
Export category Export value
Processed food, beverages & tobacco $18K
Miscellaneous $13K
Textiles & consumer goods $4K

Balance of trade

Netherlands Saint Lucia
Current account balance
$111B
2024
-$166M
2025
Current account balance ranking
6/190
2024
89/190
2025
Current account balance, % of GDP
+9.14%
2024
-6.26%
2025
Goods imports
$606B
2024
$834M
2025
Goods exports
$693B
2024
$144M
2025
Service imports
$262B
2024
$672M
2025
Service exports
$308B
2024
$1.4B
2025
Imports of goods and services, % of GDP
69.5%
2025
n/a
Exports of goods and services, % of GDP
80.7%
2025
19%
2026

Economic freedom indices

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

Netherlands Saint Lucia
Economic freedom 78.5 67.5
Economic freedom ranking 11/197 57/197
Property rights 96 64.3
Government integrity 86.8 59.7
Judicial effectiveness 96.1 77.3
Tax burden 54 77.7
Government spending 42.2 82.6
Fiscal health 95.9 80
Business freedom 85 71.9
Labor freedom 59.3 65.2
Monetary freedom 77 81
Trade freedom 79.4 60
Investment freedom 90 50
Financial freedom 80 40

Economic freedom comparison by year

Netherlands
Saint Lucia
1x
Year Economic freedom index
Netherlands Saint Lucia
2026 78.5 67.5
2025 78.2 67
2024 77.3 62.2
2023 78 60.7
2022 79.5 64.3
2021 76.8 67.5
2020 77 68.2
2019 76.8 68.7
2018 76.2 67.6
2017 75.8 65
2016 74.6 70
2015 73.7 70.2
2014 74.2 70.7
2013 73.5 70.4
2012 73.3 71.3
2011 74.7 70.8
2010 75 70.5
2009 77 68.8
2008 77.4 -
2007 75.5 -
2006 75.4 -
2005 72.9 -
2004 74.5 -
2003 74.6 -
2002 75.1 -
2001 73 -
2000 70.4 -
1999 70.2 -
1998 69.2 -
1997 70.4 -
1996 69.7 -

Data sources: The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-07-08).

GeoRank.org/economy/netherlands/saint-lucia | CC BY

The Economic Freedom Index for the Netherlands is 78.5, ranking 11/197, compared to 67.5 for Saint Lucia, ranking 57/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Netherlands Saint Lucia
Services, % of GDP
70.4%
2025
73.8%
2025
Industry, % of GDP
17.7%
2025
10.7%
2025
Agriculture, forestry, and fishing, % of GDP
1.68%
2025
1.66%
2025
GNI, Atlas method
$1.24T
2025
$2.42B
2025
GNI per capita, PPP
$85,480
2025
$26,180
2025
Total reserves including gold
$118B
2025
$447M
2025
Total reserves ranking
27/177
2025
160/177
2025
Net foreign direct investment
$11.1B
2024
-$175M
2025
Net inflows of foreign direct investment
-$17.1B
2024
$187M
2024
Net outflows of foreign direct investment
-$5.93B
2024
-$350K
2024
Servicing debt to the IMF, % of GNI n/a
3.35%
2024
Poverty at national poverty lines
14.5%
2021
25%
2016
Gross capital formation, % of GDP
19.8%
2025
n/a

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/netherlands/saint-lucia | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Public Finances in Modern History (1880–1989, retrieved 2026-07-08)
  4. The Heritage Foundation | Economic Freedom Index (1996–2026, retrieved 2026-07-08)
  5. U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
  6. TradeMap (2020–2025, retrieved 2026-07-08)
  7. United Nations | World Population Prospects (2026, retrieved 2026-07-08)
  8. 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.

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.