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Economy of Netherlands vs Slovenia compared: GDP & Debt

Updated on by Georank team

The Netherlands has a GDP of $1.23T compared to $72.5B for Slovenia, ranking 19/197 and 86/197 by economy size, respectively.

The Netherlands has $531B in government debt (43.3% of GDP), compared to $48.6B (68% of GDP) in Slovenia.

The chart below compares the two countries' GDP growth in both current (nominal) and constant dollars, accounting for inflation over time.

Netherlands
GDP, current $

GDP, constant 2015 $
Slovenia
GDP, current $

GDP, constant 2015 $
Year GDP
Netherlands Slovenia
Current $ Constant $ Current $ Constant $
1960 $13,282,979,015 $165,062,637,640 - -
1961 $14,599,836,396 $165,550,474,774 - -
1962 $15,847,582,341 $176,879,933,635 - -
1963 $17,193,744,109 $183,291,161,793 - -
1964 $20,232,048,553 $198,458,329,344 - -
1965 $22,721,869,808 $215,611,271,157 - -
1966 $24,741,480,717 $221,521,401,057 - -
1967 $27,143,828,099 $233,217,763,700 - -
1968 $30,097,635,751 $248,181,328,024 - -
1969 $34,086,038,090 $264,138,020,130 - -
1970 $38,220,884,519 $280,356,573,733 - -
1971 $44,644,730,576 $292,459,511,974 - -
1972 $54,787,070,173 $302,794,664,266 - -
1973 $71,946,639,603 $319,279,481,312 - -
1974 $87,371,810,804 $330,258,601,498 - -
1975 $100,397,061,694 $330,265,301,638 - -
1976 $109,329,386,564 $344,982,946,319 - -
1977 $127,203,923,857 $353,678,035,788 - -
1978 $156,089,077,205 $363,214,067,825 - -
1979 $179,933,827,310 $370,529,803,464 - -
1980 $195,439,301,707 $375,501,994,722 - -
1981 $164,375,775,854 $372,559,517,530 - -
1982 $158,712,765,536 $367,936,960,746 - -
1983 $153,671,294,109 $375,553,101,273 - -
1984 $144,124,462,912 $387,051,331,969 - -
1985 $144,057,523,222 $397,037,952,227 - -
1986 $201,157,708,221 $408,103,304,156 - -
1987 $245,406,949,521 $415,984,792,778 - -
1988 $262,295,966,105 $430,299,740,005 - -
1989 $258,716,904,292 $449,319,496,513 - -
1990 $318,799,003,994 $468,115,532,100 $19,832,029,087 $27,206,132,648
1991 $327,982,316,124 $479,533,499,921 $14,454,495,059 $24,784,757,479
1992 $363,497,050,125 $487,714,681,271 $14,277,261,541 $23,430,593,235
1993 $354,070,495,966 $493,847,948,233 $14,449,298,372 $24,096,823,248
1994 $379,688,232,232 $508,471,242,745 $16,400,767,070 $25,380,578,071
1995 $452,967,334,614 $524,315,389,158 $21,367,422,159 $26,422,998,604
1996 $451,372,549,020 $542,250,002,540 $21,470,699,363 $27,192,863,782
1997 $417,506,211,882 $565,287,382,970 $20,726,878,752 $28,599,098,755
1998 $438,612,530,549 $591,560,723,040 $22,058,635,314 $29,475,325,366
1999 $447,778,514,140 $621,395,031,368 $22,609,669,084 $31,028,087,571
2000 $417,649,282,154 $647,616,371,669 $20,159,190,702 $32,113,425,072
2001 $432,536,219,669 $662,664,228,364 $20,668,868,707 $33,021,812,644
2002 $475,529,972,123 $664,292,962,005 $23,214,593,516 $34,105,781,288
2003 $582,435,617,082 $664,942,855,515 $29,360,575,032 $35,195,471,632
2004 $661,224,886,143 $678,350,164,554 $34,156,553,313 $36,795,465,565
2005 $688,133,699,636 $692,147,558,367 $35,947,936,824 $38,213,609,800
2006 $737,593,995,289 $716,631,413,730 $39,260,368,837 $40,471,568,430
2007 $853,499,460,873 $744,474,740,256 $47,880,266,543 $43,360,927,308
2008 $957,901,566,041 $760,233,900,200 $55,509,332,322 $44,823,161,262
2009 $878,954,223,140 $732,369,119,343 $49,975,540,955 $41,420,820,596
2010 $852,464,982,433 $742,031,413,974 $47,793,117,241 $41,881,476,947
2011 $913,140,741,333 $755,190,192,160 $51,199,194,599 $42,155,984,116
2012 $845,689,017,066 $747,805,361,888 $46,167,053,954 $40,926,910,456
2013 $883,951,539,007 $747,579,281,183 $47,867,056,859 $40,589,764,219
2014 $901,556,501,756 $759,634,819,526 $49,514,466,380 $41,711,191,731
2015 $775,743,675,303 $775,743,675,303 $42,709,468,275 $42,709,468,275
2016 $797,163,949,290 $794,549,918,521 $44,290,685,824 $44,005,450,730
2017 $848,233,537,846 $816,650,691,532 $48,153,200,135 $46,282,469,721
2018 $929,733,599,797 $835,096,710,413 $53,689,067,640 $48,309,217,703
2019 $928,903,005,576 $854,304,699,527 $53,909,922,736 $50,002,578,163
2020 $932,560,861,701 $821,260,592,383 $53,384,760,135 $47,959,972,370
2021 $1,054,472,123,450 $872,809,729,133 $61,529,280,461 $51,983,646,951
2022 $1,046,540,797,549 $916,513,359,460 $59,927,702,746 $53,386,809,690
2023 $1,154,361,305,398 $917,196,719,472 $69,148,468,417 $54,514,654,619
2024 $1,227,543,925,316 $926,182,265,714 $72,485,008,929 $55,381,990,841

Economic indicators

Netherlands Slovenia
Gross domestic product
$1.23T
2024
$72.5B
2024
GDP rank
19/197
2024
86/197
2024
GDP growth
6.34%
2023-2024
4.83%
2023-2024
GDP per capita
$68,219
2024
$34,089
2024
GDP per capita rank
13/197
2024
33/197
2024
GDP per capita, PPP
$84,218
2024
$56,531
2024
Government debt
$531B
2024
$48.6B
2024
Debt-to-GDP ratio
43.3%
2025
68%
2025
Government debt per person
$29,494
2024
$22,853
2024
Government debt per person rank
25/185
2024
29/185
2024
Average annual personal income after taxes
$45,699
2025
$21,364
2025
Market capitalization of domestic companies
$1.1T
2017
$11.4B
2024
Number of millionaires
1,231,625
2024
n/a
Number of billionaires
13
2025
n/a
Income share by richest 10%
21.4%
2021
20.6%
2023
Income share by poorest 10%
3.6%
2021
4.1%
2023
Government expenditure, % of GDP
44.7%
2025
47.5%
2025
Consumer prices inflation
3.35%
2023-2024
1.97%
2023-2024
Unemployment rate
3.64%
2024
3.7%
2024
Population
18191638
2124696

GDP per capita in Netherlands vs Slovenia

The Netherlands' GDP per capita is $68,219, ranking 13/197, compared to $34,089 in Slovenia, ranking 33/197. Adjusted for purchasing power (GDP per capita PPP), the Netherlands ranks 12th at $84,218, while Slovenia ranks 35th at $56,531.

Netherlands
GDP per capita

GDP per capita, PPP
Slovenia
GDP per capita

GDP per capita, PPP
Year Current $
Netherlands Slovenia
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
1960 $1,156 - - -
1961 $1,254 - - -
1962 $1,342 - - -
1963 $1,437 - - -
1964 $1,668 - - -
1965 $1,848 - - -
1966 $1,986 - - -
1967 $2,155 - - -
1968 $2,364 - - -
1969 $2,647 - - -
1970 $2,931 - - -
1971 $3,384 - - -
1972 $4,110 - - -
1973 $5,353 - - -
1974 $6,450 - - -
1975 $7,346 - - -
1976 $7,937 - - -
1977 $9,180 - - -
1978 $11,196 - - -
1979 $12,817 - - -
1980 $13,812 - - -
1981 $11,537 - - -
1982 $11,089 - - -
1983 $10,696 - - -
1984 $9,992 - - -
1985 $9,941 - - -
1986 $13,804 - - -
1987 $16,734 - - -
1988 $17,771 - - -
1989 $17,423 - - -
1990 $21,322 $19,190 $9,925 $13,482
1991 $21,764 $20,164 $7,229 $12,689
1992 $23,939 $20,817 $7,151 $12,287
1993 $23,156 $21,428 $7,255 $12,967
1994 $24,683 $22,399 $8,244 $13,966
1995 $29,301 $23,465 $10,738 $13,628
1996 $29,064 $24,555 $10,797 $14,279
1997 $26,745 $26,056 $10,437 $15,253
1998 $27,924 $27,747 $11,132 $15,992
1999 $28,319 $29,316 $11,401 $17,007
2000 $26,225 $31,888 $10,136 $17,888
2001 $26,956 $33,263 $10,376 $18,765
2002 $29,447 $34,568 $11,639 $20,004
2003 $35,897 $34,291 $14,712 $20,918
2004 $40,611 $35,966 $17,104 $22,591
2005 $42,165 $37,778 $17,970 $23,682
2006 $45,124 $41,217 $19,563 $25,577
2007 $52,101 $44,205 $23,725 $27,469
2008 $58,247 $46,714 $27,462 $29,461
2009 $53,172 $44,936 $24,502 $27,214
2010 $51,306 $45,306 $23,330 $27,582
2011 $54,702 $47,004 $24,941 $28,716
2012 $50,474 $47,653 $22,442 $28,787
2013 $52,602 $49,622 $23,237 $29,634
2014 $53,457 $49,751 $24,013 $30,572
2015 $45,794 $50,970 $20,697 $31,345
2016 $46,809 $53,162 $21,448 $33,575
2017 $49,514 $56,038 $23,303 $36,180
2018 $53,955 $58,819 $25,888 $38,620
2019 $53,555 $62,345 $25,814 $42,373
2020 $53,468 $62,597 $25,392 $41,767
2021 $60,142 $68,574 $29,187 $45,914
2022 $59,123 $77,152 $28,374 $51,079
2023 $64,572 $78,305 $32,610 $53,952
2024 $68,219 $84,218 $34,089 $56,531

Spending and national debt comparison

In 2024, the Netherlands' government spending was $541B, accounting for 44.7% of its GDP, while Slovenia's spent $33.9B, or 47.5% of GDP.

Debt-to-GDP ratio is 43.3% in the Netherlands and 68% in Slovenia, ranking 124/185 and 61/185, respectively.

Netherlands
Government spending

Government debt
Slovenia
Government spending

Government debt
Year % of GDP
Netherlands Slovenia
Government spending Government debt Government spending Government debt
1960 20.4% 66.7% - -
1961 22.2% 65.9% - -
1962 22.1% 63.8% - -
1963 21.9% 61.7% - -
1964 22.3% 57.1% - -
1965 23.4% 55.8% - -
1966 24.4% 55.6% - -
1967 24.1% 55% - -
1968 25.4% 54.4% - -
1969 42.1% 48.2% - -
1970 43.2% 46.1% - -
1971 44.6% 43.7% - -
1972 44.9% 41.3% - -
1973 44.6% 38.1% - -
1974 46.4% 36.3% - -
1975 50.8% 36.1% - -
1976 50.8% 35.2% - -
1977 50.6% 34.9% - -
1978 52.3% 38.1% - -
1979 53.7% 39.5% - -
1980 55.2% 43.6% - -
1981 56.8% 46.9% - -
1982 59.1% 52.4% - -
1983 59.1% 58.4% - -
1984 58.1% 61.9% - -
1985 57.3% 67.1% - -
1986 57% 68.9% - -
1987 58.5% 71.3% - -
1988 56.4% 73.7% - -
1989 54.5% 73.7% - -
1990 48.8% 75% - -
1991 49.6% 74.8% - -
1992 50.2% 75.6% - -
1993 50.9% 76.7% - -
1994 49.4% 73.5% - -
1995 53.9% 73% 53% 18.2%
1996 47.3% 71.2% 45.2% 21.6%
1997 45.7% 65.7% 45.4% 22.1%
1998 44.6% 62.7% 46.4% 22.8%
1999 44.3% 58.6% 47.2% 23.8%
2000 43.2% 52.2% 47.8% 26.1%
2001 44.1% 49.4% 49.2% 26.3%
2002 44.8% 48.7% 47.8% 27.7%
2003 45.8% 49.8% 47.6% 27%
2004 44.7% 50.1% 46.9% 27.1%
2005 43.4% 49.6% 46.7% 26.6%
2006 44% 45% 45.7% 26.2%
2007 43.3% 42.7% 43.5% 22.9%
2008 44.3% 54.4% 45.2% 21.9%
2009 48.4% 56.3% 50% 34.9%
2010 48.9% 58.9% 50.7% 38.6%
2011 47.8% 61.2% 51.4% 46.8%
2012 47.6% 65.7% 50% 54.1%
2013 47.5% 67.2% 57.7% 70.8%
2014 46.7% 67.2% 50.6% 81.1%
2015 45.3% 63.8% 49.5% 83.4%
2016 43.9% 60.9% 46.9% 79.4%
2017 42.8% 56% 44.6% 74.9%
2018 42.4% 51.5% 44.1% 71%
2019 42.1% 47.6% 43.8% 66%
2020 47.8% 53.3% 51.8% 80.2%
2021 45.9% 50.4% 49.9% 74.8%
2022 43.2% 48.3% 47.7% 72.7%
2023 43.2% 45.1% 46.5% 68.4%
2024 44.1% 43.2% 46.8% 67%
2025 44.7% 43.3% 47.5% 68%

Government deficit by year

In 2024, the Netherlands' government deficit, the difference between spending and revenue, was -$12.9B, equivalent to -1.05% of GDP. This compares to Slovenia's deficit of -$646M, or -0.89% of GDP.

Over the past 30 years, the Netherlands recorded a fiscal deficit in 22 of those years, while Slovenia ran a deficit in 27 years. On average, the Netherlands posted an annual deficit equal to -1.62% of GDP, compared to deficit of -3.23% of GDP for Slovenia.

Deficit/surplus
Netherlands

Slovenia
Year Deficit/surplus, % of GDP
Netherlands Slovenia
1880 0.21% -
1881 -1.06% -
1882 -1.11% -
1883 -2.1% -
1884 0% -
1885 -0.55% -
1886 -0.08% -
1887 -0.37% -
1888 -0.31% -
1889 0.04% -
1890 -0.06% -
1891 -0.06% -
1892 -1.72% -
1893 -0.76% -
1894 0.12% -
1895 -0.06% -
1896 0.08% -
1897 -0.45% -
1898 -0.48% -
1899 -0.13% -
1900 0.06% -
1901 0.03% -
1902 -0.14% -
1903 0.09% -
1904 -0.72% -
1905 0.1% -
1906 0.16% -
1907 0.03% -
1908 -0.57% -
1909 -0.34% -
1910 -0.93% -
1911 -0.13% -
1912 -0.47% -
1913 -0.45% -
1914 -0.45% -
1915 -0.45% -
1916 -0.45% -
1917 -0.45% -
1918 -0.45% -
1919 -0.45% -
1920 -0.45% -
1921 -0.45% -
1922 -0.45% -
1923 -2.62% -
1924 -3.37% -
1925 -2.04% -
1926 -0.78% -
1927 -0.33% -
1928 -0.62% -
1929 -1.16% -
1930 -0.55% -
1931 -1.66% -
1932 -1.97% -
1933 -2.55% -
1934 -0.92% -
1935 -0.69% -
1936 -0.41% -
1937 0.02% -
1938 -0.37% -
1939 -3.19% -
1940 -3.19% -
1941 -3.19% -
1942 -3.19% -
1943 -3.19% -
1944 -3.19% -
1945 -3.19% -
1946 -3.19% -
1947 -3.19% -
1948 -3.19% -
1949 2.3% -
1950 0.81% -
1951 2.13% -
1952 2.19% -
1953 -2.95% -
1954 0.76% -
1955 -0.25% -
1956 -0.83% -
1957 0.3% -
1958 -0.89% -
1959 -0.74% -
1960 0.9% -
1961 -0.38% -
1962 -1.38% -
1963 -0.54% -
1964 -1.2% -
1965 -1.15% -
1966 -2.37% -
1967 -1.97% -
1968 -3.06% -
1969 -1.14% -
1970 -1.52% -
1971 -1.58% -
1972 -0.7% -
1973 0.54% -
1974 -0.26% -
1975 -2.82% -
1976 -2.02% -
1977 -0.75% -
1978 -2.09% -
1979 -2.46% -
1980 -3.95% -
1981 -4.92% -
1982 -6.17% -
1983 -5.47% -
1984 -5.25% -
1985 -3.6% -
1986 -4.62% -
1987 -5.39% -
1988 -4.23% -
1989 -5% -
1990 -4.08% -
1991 -2.05% -
1992 -3.12% -
1993 -3.13% -
1994 -3.53% -
1995 -8.72% -8.19%
1996 -1.91% -1.16%
1997 -1.6% -2.37%
1998 -1.34% -2.39%
1999 0.28% -3.04%
2000 1.14% -3.77%
2001 -0.47% -4.58%
2002 -2.23% -2.47%
2003 -3.19% -2.66%
2004 -1.82% -1.98%
2005 -0.51% -1.38%
2006 0.03% -1.26%
2007 -0.26% -0.08%
2008 -0.004% -1.44%
2009 -5.1% -5.87%
2010 -5.28% -5.56%
2011 -4.42% -6.69%
2012 -3.84% -4.2%
2013 -2.86% -11.2%
2014 -2.24% -4.53%
2015 -1.78% -2.84%
2016 0.23% -2%
2017 1.32% 0.05%
2018 1.47% 0.9%
2019 1.78% 0.68%
2020 -3.61% -7.68%
2021 -2.2% -4.61%
2022 0.01% -3.01%
2023 -0.36% -2.57%
2024 -1.05% -0.89%
2025 -1.9% -2.46%

Inflation comparison by year

Over the past 29 years, the Netherlands has recorded an average annual inflation rate of 2.3%, compared with 3.92% in Slovenia. In 2024, inflation was 3.35% in the Netherlands and 1.97% in Slovenia.

Inflation
Netherlands

Slovenia
Year Inflation
Netherlands Slovenia Netherlands Slovenia
1996 1.95% 9.86%
1997 2.11% 8.36%
1998 1.96% 7.89%
1999 2.16% 6.16%
2000 2.36% 8.91%
2001 4.16% 8.38%
2002 3.29% 7.48%
2003 2.09% 5.54%
2004 1.26% 3.59%
2005 1.69% 2.45%
2006 1.1% 2.46%
2007 1.61% 3.66%
2008 2.49% 5.65%
2009 1.19% 0.84%
2010 1.28% 1.8%
2011 2.34% 1.8%
2012 2.46% 2.6%
2013 2.51% 1.77%
2014 0.98% 0.2%
2015 0.6% -0.53%
2016 0.32% -0.05%
2017 1.38% 1.43%
2018 1.7% 1.74%
2019 2.63% 1.63%
2020 1.27% -0.05%
2021 2.68% 1.92%
2022 10% 8.83%
2023 3.84% 7.45%
2024 3.35% 1.97%

Top exports between countries

Netherlands
Export category Export value
Chemicals & pharma $517M
Machinery & equipment $514M
Metals $129M
Textiles & consumer goods $127M
Raw materials & minerals $99.5M
Processed food, beverages & tobacco $97.5M
Raw agricultural goods $83.4M
Animal & marine products $70.9M
Business & finance services $68.6M
Transport & tourism services $43.2M
Slovenia
Export category Export value
Machinery & equipment $471M
Chemicals & pharma $154M
Textiles & consumer goods $103M
Metals $66M
Transport & tourism services $59.9M
Wood & paper products $51.6M
Business & finance services $33.7M
Raw materials & minerals $32.9M
Processed food, beverages & tobacco $30M
IT & IP services $17.8M

Balance of trade

Netherlands Slovenia
Current account balance
$111B
2024
$3.23B
2024
Current account balance ranking
5/189
2024
38/189
2024
Current account balance, % of GDP
+9.04%
2024
+4.46%
2024
Goods imports
$606B
2024
$45B
2024
Goods exports
$693B
2024
$45.6B
2024
Service imports
$262B
2024
$9.59B
2024
Service exports
$308B
2024
$13.5B
2024
Imports of goods and services, % of GDP
72%
2024
74.9%
2024
Exports of goods and services, % of GDP
84.1%
2024
81.5%
2024

Economic freedom indices

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

Netherlands Slovenia
Economic freedom 78.2 68.3
Economic freedom ranking 11/197 49/197
Property rights 95.9 88.4
Government integrity 86.8 64.4
Judicial effectiveness 95.7 91.8
Tax burden 54 56.6
Government spending 41.6 30.9
Fiscal health 94.7 72.2
Business freedom 84.8 78.5
Labor freedom 60.1 64.5
Monetary freedom 74.7 72.9
Trade freedom 79.6 79.6
Investment freedom 90 70
Financial freedom 80 50

Economic freedom by year comparison

The Economic Freedom Index for the Netherlands is 78.2, ranking 11/197, compared to 68.3 for Slovenia, ranking 49/197. The chart below displays a comparison of annual changes in economic freedom indexes.

Netherlands
Slovenia
Year Economic freedom index
Netherlands Slovenia
1996 69.7 50.4
1997 70.4 55.6
1998 69.2 60.7
1999 70.2 61.3
2000 70.4 58.3
2001 73 61.8
2002 75.1 57.8
2003 74.6 57.7
2004 74.5 59.2
2005 72.9 59.6
2006 75.4 61.9
2007 75.5 59.6
2008 77.4 60.2
2009 77 62.9
2010 75 64.7
2011 74.7 64.6
2012 73.3 62.9
2013 73.5 61.7
2014 74.2 62.7
2015 73.7 60.3
2016 74.6 60.6
2017 75.8 59.2
2018 76.2 64.8
2019 76.8 65.5
2020 77 67.8
2021 76.8 68.3
2022 79.5 70.5
2023 78 68.5
2024 77.3 65.9
2025 78.2 68.3

More economic indicators

Netherlands Slovenia
Services, % of GDP
70.3%
2024
58.2%
2024
Industry, % of GDP
17.9%
2024
28.8%
2024
Agriculture, forestry, and fishing, % of GDP
1.68%
2024
1.49%
2024
GNI, Atlas method
$1.13T
2024
$67.3B
2024
GNI per capita, PPP
$83,040
2024
$55,870
2024
Total reserves including gold
$79.1B
2024
$2.83B
2024
Total reserves ranking
34/177
2024
118/177
2024
Net foreign direct investment
$11.1B
2024
-$551M
2024
Net inflows of foreign direct investment
-$17.1B
2024
$1.95B
2024
Net outflows of foreign direct investment
-$5.93B
2024
$1.4B
2024
Poverty at national poverty lines
14.5%
2021
12.7%
2022
Gross capital formation, % of GDP
19.3%
2024
21.2%
2024

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.