Romania has a GDP of $383B compared to $142B for Slovakia, ranking 43/197 and 61/197 by economy size, respectively.
Romania has $219B in government debt (61.6% of GDP), compared to $82.3B (60.1% of GDP) in Slovakia.
The chart below compares the two countries' GDP growth in both current (nominal) and constant dollars, accounting for inflation over time.
| Year | GDP | |||
|---|---|---|---|---|
Romania
|
Slovakia
|
|||
| Current $ | Constant $ | Current $ | Constant $ | |
| 1987 | $38,067,567,568 | - | - | - |
| 1988 | $40,424,528,302 | - | - | - |
| 1989 | $41,450,777,202 | - | - | - |
| 1990 | $38,247,882,300 | $116,460,149,705 | $12,915,046,978 | $45,559,569,013 |
| 1991 | $28,850,634,900 | $101,415,582,149 | $14,459,924,589 | $38,919,807,326 |
| 1992 | $25,121,666,667 | $92,524,246,376 | $15,699,327,209 | $36,303,816,918 |
| 1993 | $26,361,160,450 | $93,938,788,973 | $16,737,973,764 | $36,994,071,827 |
| 1994 | $30,072,805,104 | $97,632,408,356 | $20,428,139,756 | $39,289,750,245 |
| 1995 | $37,430,162,103 | $103,718,335,743 | $26,180,022,222 | $41,585,644,561 |
| 1996 | $36,937,074,278 | $107,771,339,314 | $28,197,790,875 | $44,130,510,843 |
| 1997 | $35,575,214,078 | $102,545,439,457 | $27,844,628,979 | $46,551,440,141 |
| 1998 | $41,696,091,974 | $100,463,958,893 | $29,976,207,629 | $48,332,548,393 |
| 1999 | $35,953,156,754 | $100,085,550,636 | $30,496,272,225 | $48,103,809,190 |
| 2000 | $37,253,739,511 | $102,548,872,692 | $29,215,726,005 | $48,483,456,227 |
| 2001 | $40,395,116,581 | $107,900,062,083 | $30,726,659,551 | $49,901,675,269 |
| 2002 | $46,065,502,703 | $114,053,593,614 | $35,243,658,399 | $52,105,958,758 |
| 2003 | $57,806,384,143 | $116,723,756,275 | $46,616,149,117 | $54,636,588,084 |
| 2004 | $74,973,656,852 | $128,895,841,499 | $57,215,475,076 | $57,581,226,217 |
| 2005 | $98,454,380,120 | $134,912,890,211 | $62,547,753,148 | $61,315,329,711 |
| 2006 | $122,023,735,993 | $145,744,791,283 | $70,751,813,443 | $66,788,144,153 |
| 2007 | $174,588,782,939 | $156,287,689,281 | $86,587,749,518 | $74,013,706,024 |
| 2008 | $214,315,932,061 | $170,834,114,653 | $100,830,060,553 | $77,983,340,267 |
| 2009 | $174,110,532,659 | $161,409,698,529 | $89,342,984,698 | $73,690,093,872 |
| 2010 | $170,064,350,672 | $155,105,339,844 | $91,112,160,801 | $78,694,079,821 |
| 2011 | $192,623,977,894 | $162,078,238,595 | $99,705,104,723 | $80,710,556,385 |
| 2012 | $179,117,323,107 | $165,163,587,446 | $94,724,394,278 | $81,977,043,068 |
| 2013 | $189,798,603,751 | $165,624,017,080 | $99,134,277,850 | $82,553,606,913 |
| 2014 | $199,722,319,676 | $172,441,103,432 | $101,713,075,599 | $84,789,118,562 |
| 2015 | $177,885,131,240 | $177,885,131,240 | $89,178,548,717 | $89,178,548,717 |
| 2016 | $185,290,759,249 | $182,972,525,962 | $90,347,173,229 | $90,915,584,912 |
| 2017 | $210,147,385,855 | $197,967,999,561 | $95,978,130,735 | $93,529,165,483 |
| 2018 | $243,468,683,030 | $210,085,482,251 | $106,611,673,365 | $97,328,432,250 |
| 2019 | $251,677,082,534 | $218,327,690,029 | $105,843,498,304 | $99,543,529,164 |
| 2020 | $252,033,792,712 | $210,305,491,426 | $107,732,602,896 | $96,969,818,857 |
| 2021 | $286,578,196,368 | $221,968,423,308 | $120,560,912,621 | $102,496,703,509 |
| 2022 | $296,354,358,293 | $230,770,154,207 | $115,884,262,198 | $102,944,982,588 |
| 2023 | $350,775,856,415 | $236,318,495,899 | $133,896,931,490 | $105,176,983,317 |
| 2024 | $382,767,571,329 | $238,241,389,260 | $141,775,733,420 | $107,345,393,746 |
Economic indicators
|
Romania
|
Slovakia
|
|
|---|---|---|
| Gross domestic product |
$383B
2024 |
$142B
2024 |
| GDP rank |
43/197
2024 |
61/197
2024 |
| GDP growth |
9.12%
2023-2024 |
5.88%
2023-2024 |
| GDP per capita |
$20,072
2024 |
$26,148
2024 |
| GDP per capita rank |
58/197
2024 |
46/197
2024 |
| GDP per capita, PPP |
$48,712
2024 |
$47,181
2024 |
| Government debt |
$219B
2024 |
$82.3B
2024 |
| Debt-to-GDP ratio |
61.6%
2025 |
60.1%
2025 |
| Government debt per person |
$11,490
2024 |
$15,170
2024 |
| Government debt per person rank |
49/185
2024 |
40/185
2024 |
| Average annual personal income after taxes |
$13,200
2025 |
$17,365
2025 |
| Market capitalization of domestic companies |
$47.4B
2024 |
$5.38B
2014 |
| Number of billionaires |
6
2025 |
2
2025 |
| Income share by richest 10% |
21.8%
2023 |
18.8%
2023 |
| Income share by poorest 10% |
2.4%
2023 |
3.3%
2023 |
| Government expenditure, % of GDP |
39.2%
2025 |
48.6%
2025 |
| Consumer prices inflation |
7.3%
2024-2025 |
2.76%
2023-2024 |
| Central bank interest rate |
6.5%
2024 |
n/a |
| Unemployment rate |
5.43%
2024 |
5.34%
2024 |
| Population |
18962595
|
5390674
|
GDP per capita in Romania vs Slovakia
Romania's GDP per capita is $20,072, ranking 58/197, compared to $26,148 in Slovakia, ranking 46/197. Adjusted for purchasing power (GDP per capita PPP), Romania ranks 46th at $48,712, while Slovakia ranks 50th at $47,181.
| Year | Current $ | |||
|---|---|---|---|---|
|
Romania
|
Slovakia
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 1987 | $1,659 | - | - | - |
| 1988 | $1,753 | - | - | - |
| 1989 | $1,790 | - | - | - |
| 1990 | $1,648 | $5,277 | $2,437 | $8,633 |
| 1991 | $1,254 | $4,792 | $2,727 | $7,618 |
| 1992 | $1,102 | $4,512 | $2,959 | $7,266 |
| 1993 | $1,158 | $4,696 | $3,143 | $7,564 |
| 1994 | $1,323 | $4,992 | $3,821 | $8,173 |
| 1995 | $1,650 | $5,425 | $4,883 | $8,806 |
| 1996 | $1,633 | $5,744 | $5,248 | $9,496 |
| 1997 | $1,577 | $5,563 | $5,172 | $10,135 |
| 1998 | $1,853 | $5,544 | $5,561 | $10,666 |
| 1999 | $1,600 | $5,596 | $5,652 | $10,726 |
| 2000 | $1,660 | $5,849 | $5,422 | $11,368 |
| 2001 | $1,825 | $6,521 | $5,712 | $12,369 |
| 2002 | $2,120 | $7,162 | $6,555 | $13,292 |
| 2003 | $2,679 | $7,560 | $8,675 | $14,090 |
| 2004 | $3,495 | $8,991 | $10,650 | $15,168 |
| 2005 | $4,618 | $9,602 | $11,642 | $16,570 |
| 2006 | $5,758 | $11,557 | $13,168 | $18,910 |
| 2007 | $8,360 | $13,703 | $16,110 | $21,233 |
| 2008 | $10,435 | $16,782 | $18,744 | $23,714 |
| 2009 | $8,548 | $16,632 | $16,587 | $23,065 |
| 2010 | $8,400 | $17,357 | $16,899 | $25,384 |
| 2011 | $9,561 | $18,804 | $18,469 | $26,202 |
| 2012 | $8,930 | $19,807 | $17,517 | $27,023 |
| 2013 | $9,498 | $19,678 | $18,313 | $28,075 |
| 2014 | $10,032 | $20,633 | $18,771 | $29,108 |
| 2015 | $8,977 | $21,630 | $16,442 | $30,156 |
| 2016 | $9,405 | $23,905 | $16,636 | $29,868 |
| 2017 | $10,728 | $26,943 | $17,646 | $30,246 |
| 2018 | $12,502 | $29,586 | $19,573 | $31,510 |
| 2019 | $12,992 | $33,638 | $19,406 | $33,986 |
| 2020 | $13,082 | $34,386 | $19,735 | $35,328 |
| 2021 | $14,987 | $37,733 | $22,132 | $38,346 |
| 2022 | $15,558 | $42,218 | $21,335 | $41,096 |
| 2023 | $18,404 | $45,777 | $24,674 | $43,950 |
| 2024 | $20,072 | $48,712 | $26,148 | $47,181 |
Spending and national debt comparison
In 2024, Romania's government spending was $152B, accounting for 39.2% of its GDP, while Slovakia's spent $66.6B, or 48.6% of GDP.
Debt-to-GDP ratio is 61.6% in Romania and 60.1% in Slovakia, ranking 74/185 and 80/185, respectively.
| Year | % of GDP | |||
|---|---|---|---|---|
|
Romania
|
Slovakia
|
|||
| Government spending | Government debt | Government spending | Government debt | |
| 1962 | 43.4% | - | - | - |
| 1963 | 23.1% | - | - | - |
| 1964 | 25.1% | - | - | - |
| 1965 | 25.6% | - | - | - |
| 1966 | 27.3% | - | - | - |
| 1967 | 30.6% | - | - | - |
| 1968 | 31.8% | - | - | - |
| 1969 | 32.1% | - | - | - |
| 1970 | 28.1% | - | - | - |
| 1971 | 27.2% | - | - | - |
| 1972 | 29.9% | - | - | - |
| 1973 | 32.6% | - | - | - |
| 1974 | 37.6% | - | - | - |
| 1975 | 40.6% | - | - | - |
| 1976 | 37.5% | - | - | - |
| 1977 | 39.9% | - | - | - |
| 1978 | 42.1% | - | - | - |
| 1979 | 42% | - | - | - |
| 1980 | 33.6% | - | - | - |
| 1981 | 30.4% | - | - | - |
| 1982 | 28.5% | - | - | - |
| 1983 | 25.8% | - | - | - |
| 1984 | 28.6% | - | - | - |
| 1985 | 41.6% | - | - | - |
| 1986 | 42.5% | - | - | - |
| 1987 | 40.7% | - | - | - |
| 1988 | 36.6% | - | - | - |
| 1989 | 40.1% | - | - | - |
| 1990 | 38.4% | - | - | - |
| 1991 | 38.3% | - | - | - |
| 1992 | 41.5% | - | - | - |
| 1993 | 33.5% | - | - | - |
| 1994 | 33.1% | - | - | - |
| 1995 | 34.4% | 6.91% | 47.7% | 21.3% |
| 1996 | 33.5% | 11% | 52.8% | 30.3% |
| 1997 | 33.5% | 15% | 48.5% | 32.8% |
| 1998 | 34.7% | 16.5% | 45.7% | 33.8% |
| 1999 | 35.1% | 21.7% | 47.9% | 47% |
| 2000 | 35% | 29.6% | 52.8% | 50.5% |
| 2001 | 33.2% | 27.4% | 45.4% | 51.2% |
| 2002 | 32.1% | 27.4% | 45.5% | 45.4% |
| 2003 | 31.8% | 24.9% | 40.6% | 43.5% |
| 2004 | 33.7% | 21.3% | 38.1% | 41.9% |
| 2005 | 32.3% | 17.8% | 39.9% | 34.9% |
| 2006 | 33.9% | 12.7% | 38.8% | 31.4% |
| 2007 | 34.6% | 12.4% | 36.4% | 30.3% |
| 2008 | 35.3% | 13% | 37% | 28.6% |
| 2009 | 36.3% | 22.5% | 44.4% | 36.4% |
| 2010 | 37.4% | 30.2% | 42.2% | 40.6% |
| 2011 | 35% | 32.6% | 41.4% | 43.3% |
| 2012 | 33.5% | 36.2% | 41.1% | 51.7% |
| 2013 | 34.2% | 39.3% | 42.4% | 54.6% |
| 2014 | 33.8% | 40.5% | 43.1% | 53.3% |
| 2015 | 34.2% | 39.4% | 45.4% | 51.5% |
| 2016 | 31.8% | 39.5% | 42.4% | 52% |
| 2017 | 31% | 37.1% | 39.4% | 51.3% |
| 2018 | 31.7% | 36.2% | 39.5% | 49.2% |
| 2019 | 33.2% | 36.5% | 40.5% | 47.9% |
| 2020 | 38.1% | 49.3% | 44.3% | 58.3% |
| 2021 | 37% | 51.5% | 44.6% | 60.1% |
| 2022 | 37.4% | 51.7% | 42.2% | 57.6% |
| 2023 | 36.6% | 52.1% | 47.9% | 56% |
| 2024 | 39.8% | 57.2% | 47% | 58% |
| 2025 | 39.2% | 61.6% | 48.6% | 60.1% |
Government deficit by year
In 2024, Romania's government deficit, the difference between spending and revenue, was -$33.1B, equivalent to -8.65% of GDP. This compares to Slovakia's deficit of -$8.27B, or -5.84% of GDP.
Over the past 30 years, Romania recorded a fiscal deficit in 30 of those years, while Slovakia ran a deficit in 30 years. On average, Romania posted an annual deficit equal to -4.05% of GDP, compared to deficit of -4.6% of GDP for Slovakia.
| Year | Deficit/surplus, % of GDP | |
|---|---|---|
|
Romania
|
Slovakia
|
|
| 1962 | -4.86% | - |
| 1963 | -1.61% | - |
| 1964 | -3.11% | - |
| 1965 | -1.29% | - |
| 1966 | 0.91% | - |
| 1967 | 1.23% | - |
| 1968 | 1.65% | - |
| 1969 | 0.93% | - |
| 1970 | 0.52% | - |
| 1971 | 0.89% | - |
| 1972 | 1.21% | - |
| 1973 | 1.53% | - |
| 1974 | 0.51% | - |
| 1975 | 0.41% | - |
| 1976 | 0.66% | - |
| 1977 | 0.23% | - |
| 1978 | 0% | - |
| 1979 | 0% | - |
| 1980 | -1.95% | - |
| 1981 | 0.61% | - |
| 1982 | 0.36% | - |
| 1983 | 9.35% | - |
| 1984 | 15.2% | - |
| 1985 | 6.36% | - |
| 1986 | 5.72% | - |
| 1987 | 2.37% | - |
| 1988 | 8.4% | - |
| 1989 | -2.87% | - |
| 1990 | 1.03% | - |
| 1991 | 3.23% | - |
| 1992 | -4.55% | - |
| 1993 | -0.35% | - |
| 1994 | -2.2% | - |
| 1995 | -3.32% | -3.43% |
| 1996 | -4.74% | -9.72% |
| 1997 | -5.19% | -6.24% |
| 1998 | -5.33% | -5.28% |
| 1999 | -3.58% | -7.17% |
| 2000 | -3.99% | -12.6% |
| 2001 | -3.2% | -7.23% |
| 2002 | -2.59% | -8.23% |
| 2003 | -2.29% | -3.14% |
| 2004 | -3.39% | -2.32% |
| 2005 | -0.69% | -2.89% |
| 2006 | -1.36% | -3.58% |
| 2007 | -3.05% | -2.05% |
| 2008 | -4.6% | -2.52% |
| 2009 | -6.86% | -8.15% |
| 2010 | -6.22% | -7.48% |
| 2011 | -4.14% | -4.31% |
| 2012 | -2.39% | -4.35% |
| 2013 | -2.44% | -2.87% |
| 2014 | -1.76% | -3.1% |
| 2015 | -1.35% | -2.66% |
| 2016 | -2.5% | -2.56% |
| 2017 | -2.86% | -0.98% |
| 2018 | -2.74% | -1.01% |
| 2019 | -4.55% | -1.21% |
| 2020 | -9.54% | -5.3% |
| 2021 | -6.7% | -5.09% |
| 2022 | -5.83% | -1.63% |
| 2023 | -5.61% | -5.16% |
| 2024 | -8.65% | -5.84% |
| 2025 | -7.83% | -5.24% |
Inflation comparison by year
Over the past 29 years, Romania has recorded an average annual inflation rate of 18.2%, compared with 4.5% in Slovakia. In 2024, inflation was 7.3% in Romania and 2.76% in Slovakia.
| Year | Inflation | ||
|---|---|---|---|
|
Romania
|
Slovakia
|
Romania
|
Slovakia
|
| 1996 | 38.8% | 5.78% | |
| 1997 | 154.8% | 6.14% | |
| 1998 | 59.1% | 6.67% | |
| 1999 | 45.8% | 10.6% | |
| 2000 | 45.7% | 12% | |
| 2001 | 34.5% | 7.33% | |
| 2002 | 22.5% | 3.13% | |
| 2003 | 15.4% | 8.55% | |
| 2004 | 11.9% | 7.55% | |
| 2005 | 9% | 2.71% | |
| 2006 | 6.6% | 4.48% | |
| 2007 | 4.8% | 2.76% | |
| 2008 | 7.8% | 4.6% | |
| 2009 | 5.6% | 1.62% | |
| 2010 | 6.1% | 0.96% | |
| 2011 | 5.8% | 3.92% | |
| 2012 | 3.3% | 3.61% | |
| 2013 | 4% | 1.4% | |
| 2014 | 1.1% | -0.08% | |
| 2015 | -0.6% | -0.33% | |
| 2016 | -1.6% | -0.52% | |
| 2017 | 1.3% | 1.31% | |
| 2018 | 4.6% | 2.51% | |
| 2019 | 3.8% | 2.66% | |
| 2020 | 2.6% | 1.94% | |
| 2021 | 5% | 3.15% | |
| 2022 | 13.8% | 12.8% | |
| 2023 | 10.4% | 10.5% | |
| 2024 | 5.6% | 2.76% | |
| 2025 | 7.3% | - | |
Top exports between countries
|
Romania
|
|
|---|---|
| Export category | Export value |
| Machinery & equipment | $1.33B |
| Textiles & consumer goods | $276M |
| Metals | $218M |
| Transport & tourism services | $151M |
| Raw materials & minerals | $146M |
| Chemicals & pharma | $91.2M |
| Processed food, beverages & tobacco | $65.1M |
| Business & finance services | $30.3M |
| Wood & paper products | $29.4M |
| Raw agricultural goods | $23.8M |
|
Slovakia
|
|
|---|---|
| Export category | Export value |
| Machinery & equipment | $1.68B |
| Metals | $344M |
| Textiles & consumer goods | $230M |
| Chemicals & pharma | $200M |
| Raw materials & minerals | $188M |
| Wood & paper products | $120M |
| Processed food, beverages & tobacco | $116M |
| Transport & tourism services | $73M |
| Animal & marine products | $29.8M |
| Miscellaneous | $27.5M |
Balance of trade
|
Romania
|
Slovakia
|
|
|---|---|---|
Current account balance
|
-$32B
2024 |
-$3.89B
2024 |
| Current account balance ranking |
184/189
2024 |
159/189
2024 |
| Current account balance, % of GDP |
-8.36%
2024 |
-2.75%
2024 |
| Goods imports |
$129B
2024 |
$107B
2024 |
| Goods exports |
$93.3B
2024 |
$107B
2024 |
| Service imports |
$30.6B
2024 |
$13.1B
2024 |
| Service exports |
$42.9B
2024 |
$13.6B
2024 |
| Imports of goods and services, % of GDP |
41.7%
2024 |
85%
2024 |
| Exports of goods and services, % of GDP |
35.6%
2024 |
85.2%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Romania
|
Slovakia
|
|
|---|---|---|
| Economic freedom | 66.5 | 68.4 |
| Economic freedom ranking | 57/197 | 48/197 |
| Property rights | 81.7 | 84.3 |
| Government integrity | 49.1 | 57.2 |
| Judicial effectiveness | 67 | 69.9 |
| Tax burden | 93.7 | 76.7 |
| Government spending | 59.1 | 38.7 |
| Fiscal health | 36.1 | 69.8 |
| Business freedom | 75.1 | 77 |
| Labor freedom | 67.8 | 58 |
| Monetary freedom | 69.2 | 64.5 |
| Trade freedom | 79.6 | 79.6 |
| Investment freedom | 70 | 75 |
| Financial freedom | 50 | 70 |
Economic freedom by year comparison
The Economic Freedom Index for Romania is 66.5, ranking 57/197, compared to 68.4 for Slovakia, ranking 48/197. The chart below displays a comparison of annual changes in economic freedom indexes.
| Year | Economic freedom index | |
|---|---|---|
|
Romania
|
Slovakia
|
|
| 1995 | 42.9 | 60.4 |
| 1996 | 46.2 | 57.6 |
| 1997 | 50.8 | 55.5 |
| 1998 | 54.4 | 57.5 |
| 1999 | 50.1 | 54.2 |
| 2000 | 52.1 | 53.8 |
| 2001 | 50 | 58.5 |
| 2002 | 48.7 | 59.8 |
| 2003 | 50.6 | 59 |
| 2004 | 50 | 64.6 |
| 2005 | 52.1 | 66.8 |
| 2006 | 58.2 | 69.8 |
| 2007 | 61.2 | 69.6 |
| 2008 | 61.7 | 70 |
| 2009 | 63.2 | 69.4 |
| 2010 | 64.2 | 69.7 |
| 2011 | 64.7 | 69.5 |
| 2012 | 64.4 | 67 |
| 2013 | 65.1 | 68.7 |
| 2014 | 65.5 | 66.4 |
| 2015 | 66.6 | 67.2 |
| 2016 | 65.6 | 66.6 |
| 2017 | 69.7 | 65.7 |
| 2018 | 69.4 | 65.3 |
| 2019 | 68.6 | 65 |
| 2020 | 69.7 | 66.8 |
| 2021 | 69.5 | 66.3 |
| 2022 | 67.1 | 69.7 |
| 2023 | 64.5 | 69 |
| 2024 | 64.4 | 68.1 |
| 2025 | 66.5 | 68.4 |
More economic indicators
|
Romania
|
Slovakia
|
|
|---|---|---|
| Services, % of GDP |
62.5%
2024 |
60%
2024 |
| Industry, % of GDP |
25%
2024 |
28.5%
2024 |
| Agriculture, forestry, and fishing, % of GDP |
3.28%
2024 |
2.03%
2024 |
|
GNI, Atlas method
|
$336B
2024 |
$130B
2024 |
| GNI per capita, PPP |
$47,420
2024 |
$46,110
2024 |
| Total reserves including gold |
$73.4B
2024 |
$14.5B
2024 |
| Total reserves ranking |
35/177
2024 |
68/177
2024 |
|
Net foreign direct investment
|
-$6.21B
2024 |
-$1.27B
2024 |
|
Net inflows of foreign direct investment
|
$7.35B
2024 |
$3.58B
2024 |
|
Net outflows of foreign direct investment
|
$1.15B
2024 |
$2.31B
2024 |
| Poverty at national poverty lines |
19%
2023 |
13.7%
2021 |
|
Gross capital formation, % of GDP
|
24.3%
2024 |
20.1%
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.