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Economy of Netherlands vs Taiwan compared: GDP & Debt

Updated on by Georank

The Netherlands has a GDP of $1.33T compared to $802B for Taiwan, ranking 18/197 and 22/197 by economy size, respectively.

The Netherlands has $578B in government debt (43.3% of GDP), compared to $215B (22.4% of GDP) in Taiwan.

Netherlands vs Taiwan GDP by year

Netherlands
Taiwan
1x
Year GDP, current $
Netherlands Taiwan
2025 $1,332,767,651,100 -
2024 $1,213,936,238,063 $801,529,000,000
2023 $1,135,475,867,551 $757,328,000,000
2022 $1,046,540,797,549 $765,529,000,000
2021 $1,054,472,123,450 $777,062,000,000
2020 $932,560,861,701 $676,935,000,000
2019 $928,903,005,576 $613,453,000,000
2018 $929,733,599,797 $610,744,000,000
2017 $848,233,537,846 $591,734,000,000
2016 $797,163,949,290 $543,002,000,000
2015 $775,743,675,303 $534,474,000,000
2014 $901,556,501,756 $535,332,000,000
2013 $883,951,539,007 $512,957,000,000
2012 $845,689,017,066 $495,536,000,000
2011 $913,140,741,333 $483,957,000,000
2010 $852,464,982,433 $444,245,000,000
2009 $878,954,223,140 $390,788,000,000
2008 $957,901,566,041 $415,824,000,000
2007 $853,499,460,873 $406,940,000,000
2006 $737,593,995,289 $386,492,000,000
2005 $688,133,699,636 $374,042,000,000
2004 $661,224,886,143 $346,881,000,000
2003 $582,435,617,082 $317,374,000,000
2002 $475,529,972,123 $307,429,000,000
2001 $432,536,219,669 $299,303,000,000
2000 $417,649,282,154 $330,725,000,000
1999 $447,778,514,140 $303,827,000,000
1998 $438,612,530,549 $279,926,000,000
1997 $417,506,211,882 $303,315,000,000
1996 $451,372,549,020 $292,473,000,000
1995 $452,967,334,614 $279,013,000,000
1994 $379,688,232,232 $256,213,000,000
1993 $354,070,495,966 $234,943,000,000
1992 $363,497,050,125 $222,947,000,000
1991 $327,982,316,124 $187,100,000,000
1990 $318,799,003,994 $166,392,000,000
1989 $258,716,904,292 $152,687,000,000
1988 $262,295,966,105 $126,378,000,000
1987 $245,406,949,521 $104,956,000,000
1986 $201,157,708,221 $78,347,000,000
1985 $144,057,523,222 $63,599,000,000
1984 $144,124,462,912 $61,036,000,000
1983 $153,671,294,109 $54,155,000,000
1982 $158,712,765,536 $49,540,000,000
1981 $164,375,775,854 $49,047,000,000
1980 $195,439,301,707 $42,292,000,000
1979 $179,933,827,310 $33,875,000,000
1978 $156,089,077,205 $27,373,000,000
1977 $127,203,923,857 $22,252,000,000
1976 $109,329,386,564 $18,988,000,000
1975 $100,397,061,694 $15,836,000,000
1974 $87,371,810,804 $14,739,000,000
1973 $71,946,639,603 $10,940,000,000
1972 $54,787,070,173 $8,063,000,000
1971 $44,644,730,576 $6,727,000,000
1970 $38,220,884,519 $5,785,000,000
1969 $34,086,038,090 $5,017,000,000
1968 $30,097,635,751 $4,325,000,000
1967 $27,143,828,099 $3,709,000,000
1966 $24,741,480,717 $3,207,000,000
1965 $22,721,869,808 $2,869,000,000
1964 $20,232,048,553 $2,592,000,000
1963 $17,193,744,109 $2,218,000,000
1962 $15,847,582,341 $1,960,000,000
1961 $14,599,836,396 $1,778,000,000
1960 $13,282,979,015 $1,743,000,000
1959 - $1,444,000,000
1958 - $1,836,000,000
1957 - $1,636,000,000
1956 - $1,399,000,000
1955 - $1,940,000,000
1954 - $1,628,000,000
1953 - $1,481,000,000
1952 - $1,677,000,000
1951 - $1,197,000,000

Data sources: National Statistics, Taiwan (1951–2024, retrieved 2026-07-08); World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).

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

GDP per capita in Netherlands vs Taiwan by year

Netherlands
GDP per capita

GDP per capita, PPP
Taiwan
GDP per capita

GDP per capita, PPP
1x
Year Current $
Netherlands Taiwan
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $73,684 - - -
2024 $67,465 $86,174 $34,238 -
2023 $63,516 $81,729 $32,444 -
2022 $59,123 $78,630 $32,827 -
2021 $60,142 $68,574 $33,111 -
2020 $53,468 $62,597 $28,705 -
2019 $53,555 $62,345 $25,998 -
2018 $53,955 $58,819 $25,901 -
2017 $49,514 $56,038 $25,121 $50,500
2016 $46,809 $53,162 $23,091 -
2015 $45,794 $50,957 $22,780 $46,800
2014 $53,457 $49,751 $22,874 -
2013 $52,602 $49,622 $21,973 $39,600
2012 $50,474 $47,653 $21,295 $39,400
2011 $54,702 $47,004 $20,866 $38,200
2010 $51,306 $45,301 $19,197 $35,700
2009 $53,172 $44,959 $16,933 $32,000
2008 $58,247 $46,714 $18,081 $31,100
2007 $52,101 $44,203 $17,757 $30,100
2006 $45,124 $41,208 $16,934 $29,500
2005 $42,165 $37,778 $16,456 $27,500
2004 $40,611 $35,961 $15,317 $25,300
2003 $35,897 $34,286 $14,066 $23,400
2002 $29,447 $34,568 $13,686 $18,000
2001 $26,956 $33,259 $13,397 $17,200
2000 $26,225 $31,895 $14,908 $17,400
1999 $28,319 $29,316 $13,804 $16,100
1998 $27,924 $27,749 $12,820 -
1997 $26,745 $26,062 $14,020 -
1996 $29,064 $24,564 $13,641 -
1995 $29,301 $23,480 $13,119 -
1994 $24,683 $22,414 $12,150 -
1993 $23,156 $21,443 $11,242 -
1992 $23,939 $20,831 $10,768 -
1991 $21,764 $20,177 $9,125 -
1990 $21,322 $19,203 $8,205 -
1989 $17,423 - $7,613 -
1988 $17,771 - $6,370 -
1987 $16,734 - $5,350 -
1986 $13,804 - $4,036 -
1985 $9,941 - $3,314 -
1984 $9,992 - $3,224 -
1983 $10,696 - $2,903 -
1982 $11,089 - $2,699 -
1981 $11,537 - $2,720 -
1980 $13,812 - $2,389 -
1979 $12,817 - $1,950 -
1978 $11,196 - $1,606 -
1977 $9,180 - $1,330 -
1976 $7,937 - $1,158 -
1975 $7,346 - $985 -
1974 $6,450 - $934 -
1973 $5,353 - $706 -
1972 $4,110 - $530 -
1971 $3,384 - $451 -
1970 $2,931 - $397 -
1969 $2,647 - $357 -
1968 $2,364 - $319 -
1967 $2,155 - $280.8 -
1966 $1,986 - $249.1 -
1965 $1,848 - $229.3 -
1964 $1,668 - $213.6 -
1963 $1,437 - $188.6 -
1962 $1,342 - $172 -
1961 $1,254 - $161.2 -
1960 $1,156 - $163.4 -
1959 - - $140.4 -
1958 - - $185.1 -
1957 - - $170.5 -
1956 - - $150.6 -
1955 - - $216.3 -
1954 - - $188.3 -
1953 - - $177.7 -
1952 - - $208.4 -
1951 - - $154.3 -

Data sources: National Statistics, Taiwan (1951–2024, retrieved 2026-07-08); World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08); Central Intelligence Agency (CIA) (1999–2017, retrieved 2026-07-08).

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

The Netherlands' GDP per capita is $73,684, ranking 12/197, compared to $34,238 in Taiwan, ranking 38/197. Adjusted for purchasing power (GDP per capita PPP), the Netherlands ranks 11th at $86,174, while Taiwan ranks 44th at $50,500.

Economic indicators

Netherlands Taiwan
Gross domestic product
$1.33T
2025
$802B
2024
GDP rank
18/197
2025
22/197
2024
GDP growth
1.78%
2024-2025
2.16%
2023-2024
GDP per capita
$73,684
2025
$34,238
2024
GDP per capita rank
12/197
2025
38/197
2024
GDP per capita, PPP
$86,174
2024
$50,500
2017
GDP per capita PPP rank
11/197
2024
44/197
2017
Government debt
$578B
2025
$215B
2024
Debt-to-GDP ratio
43.3%
2025
22.4%
2025
Government debt per person
$31,942
2025
$9,170
2024
Government debt per person rank
23/185
2025
64/185
2024
Average annual personal income after taxes
$46,674
2026
$18,863
2026
Market capitalization of domestic companies
$1.1T
2017
n/a
Number of millionaires
1,294,000
2026
772,000
2026
Number of billionaires
13
2026
66
2026
Income share by richest 10%
21.4%
2021
n/a
Income share by poorest 10%
3.6%
2021
n/a
Government expenditure, % of GDP
45.1%
2025
15.8%
2024
Consumer prices inflation
3.26%
2024-2025
1.7%
2024-2025
Central bank interest rate n/a
2%
2024
Unemployment rate
3.9%
2025
3.35%
2025
Population
18243998
23229461

Spending and national debt comparison by year

Netherlands
Spending

Debt
Taiwan
Spending

Debt
1x
Year % of GDP
Netherlands Taiwan
Government spending Government debt Government spending Government debt
2025 45.1% 43.3% - 22.4%
2024 44.4% 43.7% 15.8% 26.8%
2023 44% 45.8% 17.1% 29%
2022 43.3% 48.4% 16% 29.5%
2021 45.9% 50.5% 15.4% 30.1%
2020 47.8% 53.4% 16.2% 32%
2019 42.1% 47.7% 15.3% 32.6%
2018 42.4% 51.6% 15.4% 33.8%
2017 42.8% 56% 15.4% 34.5%
2016 43.9% 60.9% 15.6% 35.4%
2015 45.3% 63.8% 15.5% 35.9%
2014 46.7% 67.2% - 37.5%
2013 47.5% 67.2% - 38.9%
2012 47.6% 65.7% - 39.2%
2011 47.8% 61.2% 18.3% 38.3%
2010 48.9% 58.9% - 36.9%
2009 48.4% 56.3% - 36.7%
2008 44.3% 54.4% - 33.4%
2007 43.3% 42.7% - 32.2%
2006 44% 45% - 33.3%
2005 43.4% 49.6% - 34.1%
2004 44.7% 50.1% - 33.4%
2003 45.8% 49.8% - 32.1%
2002 44.8% 48.7% - 29.8%
2001 44.1% 49.4% 22.4% 30.1%
2000 43.2% 52.2% - 26.2%
1999 44.3% 58.6% - 23.7%
1998 44.6% 62.7% - 23.7%
1997 45.7% 65.7% - 25%
1996 47.3% 71.2% - -
1995 53.9% 73% - -
1994 49.4% 73.5% - -
1993 50.9% 76.7% - -
1992 50.2% 75.6% - -
1991 49.6% 74.8% 25.4% -
1990 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% 23.6% -
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% 20.3% -
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); National Statistics, Taiwan (1976–2024, retrieved 2026-07-08).

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

In 2025, the Netherlands' government spending was $602B, accounting for 45.1% of its GDP, while Taiwan spent $127B, or 15.8% of GDP.

Debt-to-GDP ratio is 43.3% in the Netherlands and 22.4% in Taiwan, ranking 121/185 and 170/185, respectively.

Government deficit by year

Deficit/surplus
Netherlands

Taiwan
1x
Year Deficit/surplus, % of GDP
Netherlands Taiwan
2025 -1.84% -
2024 -0.94% 0.43%
2023 -0.37% -0.61%
2022 0.002% 0.17%
2021 -2.26% -0.18%
2020 -3.72% -1.03%
2019 1.91% 0.11%
2018 1.49% 0.02%
2017 1.35% -0.14%
2016 0.23% -0.31%
2015 -1.84% 0.1%
2014 -2.17% -
2013 -2.87% -
2012 -3.83% -
2011 -4.42% -2.15%
2010 -5.3% -
2009 -5.06% -
2008 -0.06% -
2007 -0.16% -
2006 0.04% -
2005 -0.51% -
2004 -1.82% -
2003 -3.19% -
2002 -2.23% -
2001 -0.47% -3.7%
2000 1.14% -
1999 0.28% -
1998 -1.34% -
1997 -1.6% -
1996 -1.91% -
1995 -8.72% -
1994 -3.53% -
1993 -3.13% -
1992 -3.12% -
1991 -2.05% -4.5%
1990 -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% -0.78%
1980 -3.95% -
1979 -2.46% -
1978 -2.09% -
1977 -0.75% -
1976 -2.02% 1.32%
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); National Statistics, Taiwan (1976–2024, retrieved 2026-07-08).

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

In 2024, the Netherlands' government deficit, the difference between spending and revenue, was $11.5B, equivalent to 0.94% of GDP. This compares to Taiwan's surplus of $3.45B, or 0.43% of GDP.

Over the past 49 years, the Netherlands recorded a fiscal deficit in 41 of those years, while Taiwan ran a deficit in 9 years. On average, the Netherlands posted an annual deficit equal to 2.45% of GDP, compared to deficit of 0.75% of GDP for Taiwan.

Inflation comparison by year

Inflation
Netherlands

Taiwan
1x
Year Consumer prices inflation
Netherlands Taiwan
2025 3.26% 1.7%
2024 3.35% 2.2%
2023 3.84% 2.5%
2022 10% 2.9%
2021 2.68% 2%
2020 1.27% -0.2%
2019 2.63% 0.6%
2018 1.7% 1.4%
2017 1.38% 0.6%
2016 0.32% 1.4%
2015 0.6% -0.3%
2014 0.98% 1.2%
2013 2.51% 0.8%
2012 2.46% 1.9%
2011 2.34% 1.4%
2010 1.28% 1%
2009 1.19% -0.9%
2008 2.49% 3.5%
2007 1.61% 1.8%
2006 1.1% 0.6%
2005 1.69% 2.3%
2004 1.26% 1.6%
2003 2.09% -0.3%
2002 3.29% -0.2%
2001 4.16% 0%
2000 2.36% 1.2%
1999 2.16% 0.2%
1998 1.96% 1.7%
1997 2.11% 0.9%

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/netherlands/taiwan | CC BY

Over the past 29 years, the Netherlands has recorded an average annual inflation rate of 2.35%, compared with 1.16% in Taiwan. In 2025, inflation was 3.26% in the Netherlands and 1.7% in Taiwan.

Balance of trade

Netherlands Taiwan
Current account balance
$111B
2024
$113B
2024
Current account balance ranking
6/190
2024
5/190
2024
Current account balance, % of GDP
+9.14%
2024
+14.1%
2024
Goods imports
$606B
2024
n/a
Goods exports
$693B
2024
n/a
Service imports
$262B
2024
n/a
Service exports
$308B
2024
n/a
Imports of goods and services, % of GDP
69.5%
2025
54.5%
2025
Exports of goods and services, % of GDP
80.7%
2025
73.6%
2025

Economic freedom indices

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

Netherlands Taiwan
Economic freedom 78.5 79.8
Economic freedom ranking 11/197 6/197
Property rights 96 83.4
Government integrity 86.8 74.3
Judicial effectiveness 96.1 94.3
Tax burden 54 78.9
Government spending 42.2 90
Fiscal health 95.9 92.9
Business freedom 85 78.6
Labor freedom 59.3 69
Monetary freedom 77 80.3
Trade freedom 79.4 86
Investment freedom 90 70
Financial freedom 80 60

Economic freedom comparison by year

Netherlands
Taiwan
1x
Year Economic freedom index
Netherlands Taiwan
2026 78.5 79.8
2025 78.2 79.7
2024 77.3 80
2023 78 80.7
2022 79.5 80.1
2021 76.8 78.6
2020 77 77.1
2019 76.8 77.3
2018 76.2 76.6
2017 75.8 76.5
2016 74.6 74.7
2015 73.7 75.1
2014 74.2 73.9
2013 73.5 72.7
2012 73.3 71.9
2011 74.7 70.8
2010 75 70.4
2009 77 69.5
2008 77.4 70.3
2007 75.5 69.4
2006 75.4 69.7
2005 72.9 71.3
2004 74.5 69.6
2003 74.6 71.7
2002 75.1 71.3
2001 73 72.8
2000 70.4 72.5
1999 70.2 71.5
1998 69.2 70.4
1997 70.4 70
1996 69.7 74.1
1995 - 74.2

Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08).

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

The Economic Freedom Index for the Netherlands is 78.5, ranking 11/197, compared to 79.8 for Taiwan, ranking 6/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Netherlands Taiwan
Services, % of GDP
70.4%
2025
58.1%
2024
Industry, % of GDP
17.7%
2025
40.4%
2024
Agriculture, forestry, and fishing, % of GDP
1.68%
2025
1.46%
2024
GNI, Atlas method
$1.24T
2025
$832B
2024
GNI per capita, PPP
$85,480
2025
n/a
Total reserves including gold
$118B
2025
n/a
Total reserves ranking
27/177
2025
n/a
Net foreign direct investment
$11.1B
2024
n/a
Net inflows of foreign direct investment
-$17.1B
2024
n/a
Net outflows of foreign direct investment
-$5.93B
2024
n/a
Poverty at national poverty lines
14.5%
2021
1.5%
2020
Gross capital formation, % of GDP
19.8%
2025
26.9%
2024

GDP per capita map

1x

Data sources: World Bank | Economy & Growth (1985–2025, retrieved 2026-07-08); National Statistics, Taiwan (1985–2024, retrieved 2026-07-08); U.S. Census Bureau (1985–2025, retrieved 2026-07-08).

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

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. National Statistics, Taiwan (1951–2026, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Public Finances in Modern History (1880–1989, retrieved 2026-07-08)
  4. International Monetary Fund (IMF) | Fiscal Monitor (1990–2025, retrieved 2026-07-08)
  5. The Heritage Foundation | Economic Freedom Index (1995–2026, 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.