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Economy of South Africa vs United Arab Emirates compared: GDP & Debt

Updated on by Georank

South Africa has a GDP of $427B compared to $552B for the United Arab Emirates, ranking 40/197 and 31/197 by economy size, respectively.

South Africa has $336B in government debt (78.6% of GDP), compared to $193B (34.3% of GDP) in the United Arab Emirates.

South Africa vs United Arab Emirates GDP by year

South Africa
United Arab Emirates
1x
Year GDP, current $
South Africa UAE
2025 $427,184,325,997 -
2024 $401,144,998,374 $552,324,919,096
2023 $381,440,724,491 $522,622,268,401
2022 $407,596,043,068 $511,403,404,642
2021 $419,986,284,375 $422,441,282,436
2020 $337,974,655,408 $357,161,776,271
2019 $389,330,032,224 $433,926,218,686
2018 $405,260,723,893 $440,560,003,161
2017 $381,448,814,653 $403,365,056,079
2016 $323,585,509,674 $381,717,208,621
2015 $346,709,790,459 $381,973,135,513
2014 $381,198,869,776 $424,935,834,104
2013 $400,886,013,596 $409,632,574,703
2012 $434,400,545,086 $392,793,559,051
2011 $458,199,494,831 $368,881,033,963
2010 $417,363,822,802 $307,736,348,527
2009 $329,754,060,647 $253,547,358,747
2008 $316,131,258,616 $315,474,615,741
2007 $333,077,117,254 $257,916,148,767
2006 $303,858,675,364 $222,116,532,963
2005 $288,867,217,197 $180,617,467,954
2004 $255,806,908,595 $147,824,249,958
2003 $197,018,965,309 $124,346,476,180
2002 $129,087,556,612 $109,816,091,079
2001 $135,429,905,923 $103,311,631,797
2000 $151,752,757,215 $104,337,463,730
1999 $151,516,957,079 $84,445,399,335
1998 $152,982,984,557 $75,674,384,205
1997 $168,978,057,328 $78,838,886,862
1996 $163,234,925,381 $73,571,217,377
1995 $171,735,933,897 $65,743,604,966
1994 $153,512,712,382 $59,305,111,228
1993 $147,194,747,566 $55,625,269,485
1992 $146,956,150,987 $54,239,188,746
1991 $135,203,698,238 $51,552,058,250
1990 $126,048,140,142 $50,701,374,187
1989 $108,055,624,082 $41,464,966,302
1988 $103,976,831,871 $36,275,613,877
1987 $96,535,763,418 $36,384,802,310
1986 $73,354,771,399 $33,943,568,481
1985 $64,459,376,087 $40,603,631,079
1984 $84,870,163,366 $41,807,931,453
1983 $96,204,110,942 $42,803,373,390
1982 $85,904,057,409 $46,622,715,281
1981 $93,141,472,164 $49,333,471,895
1980 $89,411,864,402 $43,599,134,193
1979 $63,038,658,089 $31,225,557,022
1978 $51,607,412,902 $23,775,718,541
1977 $45,328,411,332 $24,871,660,292
1976 $41,150,460,288 $19,213,212,475
1975 $42,906,905,672 $14,720,729,969
1974 $41,389,186,095 $11,651,505,689
1973 $33,262,772,008 $4,231,243,616
1972 $24,515,919,217 $1,415,086,929
1971 $23,411,076,638 $939,893,600
1970 $21,218,391,513 $685,986,701
1969 $19,256,992,297 -
1968 $17,124,793,150 -
1967 $15,821,393,671 -
1966 $14,211,394,315 -
1965 $13,068,994,772 -
1964 $11,955,995,218 -
1963 $10,854,195,658 -
1962 $9,813,996,074 -
1961 $9,225,996,310 -
1960 $8,748,596,501 -

Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).

GeoRank.org/economy/south-africa/united-arab-emirates | CC BY

GDP per capita in South Africa vs United Arab Emirates by year

South Africa
GDP per capita

GDP per capita, PPP
United Arab Emirates
GDP per capita

GDP per capita, PPP
1x
Year Current $
South Africa UAE
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2025 $6,598 - - -
2024 $6,267 $15,456 $50,274 $79,229
2023 $6,034 $15,200 $49,851 $77,955
2022 $6,534 $14,749 $50,760 $75,072
2021 $6,829 $13,682 $44,118 $68,580
2020 $5,581 $12,671 $37,992 $66,791
2019 $6,534 $13,361 $45,939 $79,816
2018 $6,914 $13,347 $47,135 $77,446
2017 $6,618 $13,738 $43,734 $70,282
2016 $5,651 $13,519 $42,721 $69,987
2015 $6,112 $13,398 $44,910 $73,986
2014 $6,857 $13,359 $52,725 $87,478
2013 $7,332 $13,369 $53,247 $87,526
2012 $8,077 $12,987 $53,142 $89,198
2011 $8,646 $13,143 $51,922 $89,665
2010 $7,973 $12,637 $44,795 $85,120
2009 $6,375 $12,261 $37,803 $84,780
2008 $6,185 $12,525 $50,054 $94,628
2007 $6,592 $12,047 $45,855 $100,813
2006 $6,077 $11,250 $44,343 $106,814
2005 $5,837 $10,441 $38,719 $101,301
2004 $5,221 $9,714 $33,377 $98,661
2003 $4,062 $9,139 $29,660 $92,636
2002 $2,688 $8,792 $27,754 $88,467
2001 $2,847 $8,428 $27,745 $90,370
2000 $3,218 $8,095 $29,866 $92,899
1999 $3,242 $7,667 $25,856 $87,658
1998 $3,310 $7,463 $24,889 $90,229
1997 $3,700 $7,433 $27,983 $96,009
1996 $3,618 $7,208 $28,323 $94,620
1995 $3,856 $6,875 $27,003 $93,702
1994 $3,489 $6,611 $25,473 $89,959
1993 $3,400 $6,375 $25,033 $86,330
1992 $3,462 $6,275 $25,648 $87,509
1991 $3,243 $6,383 $25,691 $87,250
1990 $3,093 $6,382 $26,710 $88,455
1989 $2,727 - $23,167 -
1988 $2,702 - $21,570 -
1987 $2,586 - $23,113 -
1986 $2,027 - $23,132 -
1985 $1,839 - $29,468 -
1984 $2,504 - $32,012 -
1983 $2,938 - $34,650 -
1982 $2,717 - $39,972 -
1981 $3,050 - $44,855 -
1980 $3,029 - $42,925 -
1979 $2,202 - $34,238 -
1978 $1,852 - $29,379 -
1977 $1,671 - $35,020 -
1976 $1,559 - $31,197 -
1975 $1,670 - $27,117 -
1974 $1,656 - $23,823 -
1973 $1,369 - $9,696 -
1972 $1,038 - $3,675 -
1971 $1,020 - $2,805 -
1970 $952 - $2,394 -
1969 $891 - - -
1968 $817 - - -
1967 $779 - - -
1966 $722 - - -
1965 $685 - - -
1964 $646 - - -
1963 $605 - - -
1962 $563 - - -
1961 $546 - - -
1960 $532 - - -

Data sources: World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08).

GeoRank.org/economy/south-africa/united-arab-emirates | CC BY

South Africa's GDP per capita is $6,598, ranking 109/197, compared to $50,274 in the United Arab Emirates, ranking 25/197. Adjusted for purchasing power (GDP per capita PPP), South Africa ranks 112th at $15,456, while the United Arab Emirates ranks 16th at $79,229.

Economic indicators

South Africa UAE
Gross domestic product
$427B
2025
$552B
2024
GDP rank
40/197
2025
31/197
2024
GDP growth
1.11%
2024-2025
3.99%
2023-2024
GDP per capita
$6,598
2025
$50,274
2024
GDP per capita rank
109/197
2025
25/197
2024
GDP per capita, PPP
$15,456
2024
$79,229
2024
GDP per capita PPP rank
112/197
2024
16/197
2024
Government debt
$336B
2025
$193B
2024
Debt-to-GDP ratio
78.6%
2025
34.3%
2025
Government debt per person
$5,189
2025
$17,568
2024
Government debt per person rank
84/185
2025
37/185
2024
Average annual personal income after taxes
$4,738
2026
$40,096
2026
Market capitalization of domestic companies
$1.4T
2025
$1.11T
2025
Number of millionaires
97,000
2026
183,000
2026
Number of billionaires
7
2026
6
2026
Income share by richest 10%
42.1%
2022
20.5%
2018
Income share by poorest 10%
1.4%
2022
2.8%
2018
Government expenditure, % of GDP
34.2%
2025
22.6%
2025
Consumer prices inflation
3.21%
2024-2025
1.3%
2024-2025
Central bank interest rate
7%
2026
3.65%
2025
Unemployment rate
32.3%
2024
1.88%
2024
Population
65829368
11885001

Spending and national debt comparison by year

South Africa
Spending

Debt
United Arab Emirates
Spending

Debt
1x
Year % of GDP
South Africa UAE
Government spending Government debt Government spending Government debt
2025 34.2% 78.6% 22.6% 34.3%
2024 33% 76% 21.4% 34.9%
2023 32.5% 73.2% 22.7% 31.9%
2022 31.9% 70.7% 22.7% 31.5%
2021 32.7% 68.8% 25.9% 35.7%
2020 34.6% 68.9% 30.5% 30.1%
2019 31.4% 56.1% 27.4% 25.8%
2018 30.2% 51.5% 25.9% 20.7%
2017 29.9% 48.6% 27.2% 21.2%
2016 29.9% 47.1% 31.7% 18.6%
2015 30.2% 45.2% 26.4% 15.6%
2014 29.3% 43.3% 31.4% 13.5%
2013 28.9% 40.4% 28.9% 15.3%
2012 28.6% 37.4% 27.8% 20.2%
2011 28.1% 34.7% 29.6% 20.4%
2010 28.3% 31.2% 30.4% 18.3%
2009 28.5% 27% 35% 21.1%
2008 26% 24% 22% 8.95%
2007 24.4% 24.3% 17.7% 8.89%
2006 24.7% 28% 15.6% 5.05%
2005 25.1% 29.6% 15.7% 4.48%
2004 22.7% 30.7% 17.7% 4.08%
2003 22.6% 31.5% 20% 3.33%
2002 22.2% 31.8% 21.3% 3.43%
2001 22.6% 38% 25.2% 2.69%
2000 22.6% 37.9% 21.8% 3.12%
1999 26.7% 45.9% 24.3% 4.73%
1998 27.1% 45.8% 25.8% 4.18%
1997 27.9% 45.8% 22.6% 2.86%
1996 28.5% 44.3% 27.6% 3.48%
1995 27.2% 47% 26.1% 5.06%
1994 31.3% 46.4% 30.1% 5.58%
1993 29.1% 39.8% 31.5% 6.01%
1992 29.8% 34.8% 29.6% 5.31%
1991 27.8% 34.7% 36% 4.97%
1990 28.7% 31.8% - -
1989 29.6% 33.3% - -
1988 23.9% 30.6% - -
1987 28% 33.5% - -
1986 27.8% 32.5% - -
1985 26.8% 26.3% - -
1984 25.2% 23.2% - -
1983 25.1% 28.7% - -
1982 23.8% 31.3% - -
1981 23.3% 27.4% - -
1980 21.8% 33.3% - -
1979 26.5% 41.9% - -
1978 26.8% 44.7% - -
1977 27.3% 45.3% - -
1976 23% 35% - -
1975 21.2% 32.8% - -
1974 19.1% 33.7% - -
1973 21% 38.2% - -
1972 22.9% 41.1% - -
1971 19.9% 41.1% - -
1970 20% 43.3% - -
1969 18.8% 44.4% - -
1968 19.4% 42.7% - -
1967 18.8% 41.1% - -
1966 18.3% 41.4% - -
1965 18.2% 42.7% - -
1964 11.3% 30% - -
1963 15.9% 43.4% - -
1962 15.9% 45.7% - -
1961 15.7% 52.8% - -
1960 16.7% 52.9% - -

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1991–2025, retrieved 2026-07-08); International Monetary Fund (IMF) | Public Finances in Modern History (1960–1999, retrieved 2026-07-08).

GeoRank.org/economy/south-africa/united-arab-emirates | CC BY

In 2025, South Africa's government spending was $146B, accounting for 34.2% of its GDP, while the United Arab Emirates spent $118B, or 22.6% of GDP.

Debt-to-GDP ratio is 78.6% in South Africa and 34.3% in the United Arab Emirates, ranking 46/185 and 146/185, respectively.

Government deficit by year

Deficit/surplus
South Africa

United Arab Emirates
1x
Year Deficit/surplus, % of GDP
South Africa UAE
2025 -5.78% 5.15%
2024 -5.67% 6.41%
2023 -5.6% 5.82%
2022 -4.25% 9.8%
2021 -5.54% 3.96%
2020 -9.62% -2.42%
2019 -5.07% 2.5%
2018 -3.73% 3.65%
2017 -4.02% -0.16%
2016 -3.72% -2.95%
2015 -4.37% -6.35%
2014 -3.93% 1.74%
2013 -3.9% 7.99%
2012 -4.04% 8.59%
2011 -3.7% 5.05%
2010 -4.51% 0.52%
2009 -4.67% -6.13%
2008 -0.49% 17.6%
2007 1.22% 17.1%
2006 0.81% 20.2%
2005 -0.1% 16%
2004 -1.04% 6.4%
2003 -1.59% 2.35%
2002 -0.96% -1.24%
2001 -1.02% 1.21%
2000 -1.38% 10.7%
1999 -2.21% 1.31%
1998 -2.56% 1%
1997 -4.08% 6.71%
1996 -4.53% 0.92%
1995 -4.38% 3.58%
1994 -8.09% -1.78%
1993 -8.54% -2.89%
1992 -7.09% 3.34%
1991 -4.85% 3.89%
1990 -3.82% -
1989 -8.3% -
1988 -3.29% -
1987 -6.36% -
1986 -5.69% -
1985 -4.86% -
1984 -5.24% -
1983 -5.3% -
1982 -3.88% -
1981 -3.72% -
1980 -1.91% -
1979 -4.65% -
1978 -5.42% -
1977 -5.52% -
1976 -4.19% -
1975 -2.62% -
1974 -1.5% -
1973 -4.54% -
1972 -5.39% -
1971 -1.96% -
1970 -3.19% -
1969 -3.94% -
1968 -3.38% -
1967 -3.8% -
1966 -3.04% -
1965 -3.15% -
1964 -1.19% -
1963 -2.26% -
1962 -1.4% -
1961 -3.25% -
1960 -2.36% -
1959 -4.4% -
1958 -3.5% -
1957 -2.8% -
1956 -2.12% -
1955 -2.9% -
1954 -2.53% -
1953 -3.72% -
1952 -4.14% -
1951 -0.4% -
1950 -2.33% -
1949 -6.87% -
1948 -6.03% -
1947 -1.82% -
1946 -4.03% -
1945 -7.41% -
1944 -8.94% -
1943 -8.49% -
1942 -9.08% -
1941 -7.3% -
1940 -10.9% -
1939 -2.96% -
1938 -3.91% -
1937 -2.16% -
1936 -2.58% -
1935 -3.2% -
1934 -3.29% -
1933 -3.31% -
1932 -4.72% -
1931 -5.31% -
1930 -5.19% -
1929 -4.41% -
1928 -3.29% -
1927 -3.79% -
1926 -4.76% -
1925 -4.92% -
1924 -4.72% -
1923 -5.53% -
1922 -4.51% -
1921 -5.38% -
1920 -5.52% -
1919 -2.6% -
1918 -3.7% -
1917 -3.52% -
1916 -2.57% -
1915 -10.7% -
1914 -11.6% -
1913 -4.15% -

Data sources: International Monetary Fund (IMF) | Public Finances in Modern History (1913–1999, retrieved 2026-07-08); International Monetary Fund (IMF) | Fiscal Monitor (1991–2025, retrieved 2026-07-08).

GeoRank.org/economy/south-africa/united-arab-emirates | CC BY

In 2024, South Africa's government deficit, the difference between spending and revenue, was $22.7B, equivalent to 5.67% of GDP. This compares to the United Arab Emirates' surplus of $35.4B, or 6.41% of GDP.

Over the past 34 years, South Africa recorded a fiscal deficit in 32 of those years, while the United Arab Emirates ran a deficit in 8 years. On average, South Africa posted an annual deficit equal to 3.74% of GDP, compared to surplus of 4.25% of GDP for the United Arab Emirates.

Inflation comparison by year

Inflation
South Africa

United Arab Emirates
1x
Year Consumer prices inflation
South Africa UAE
2025 3.21% 1.3%
2024 4.36% 1.7%
2023 6.08% 1.6%
2022 7.04% 4.8%
2021 4.62% -0.1%
2020 3.23% -2.1%
2019 4.1% -1.9%
2018 4.51% 3.1%
2017 5.19% 2%
2016 6.6% 1.6%
2015 4.52% 4.1%
2014 6.13% 2.3%
2013 5.78% 1.1%
2012 5.74% 0.7%
2011 5% 0.9%
2010 4.07% 0.9%
2009 7.24% -4.7%
2008 9.91% 12.3%
2007 6.18% 11.1%
2006 3.24% 9.3%
2005 2.06% 6.2%
2004 -0.69% 5%
2003 5.68% 3.1%
2002 9.49% 2.9%
2001 5.7% 2.8%
2000 5.34% 1.3%
1999 5.18% 2.1%
1998 6.88% 2%
1997 8.6% 3%

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/south-africa/united-arab-emirates | CC BY

Over the past 29 years, South Africa has recorded an average annual inflation rate of 5.34%, compared with 2.7% in the United Arab Emirates. In 2025, inflation was 3.21% in South Africa and 1.3% in the United Arab Emirates.

Top exports between countries

South Africa
Export category Export value
Precious metals & jewellery $1.25B
Raw agricultural goods $467M
Machinery & equipment $450M
Raw materials & minerals $325M
Chemicals & pharma $143M
Processed food, beverages & tobacco $105M
Metals $93.3M
Animal & marine products $68.2M
Textiles & consumer goods $59.1M
Wood & paper products $20.5M
UAE
Export category Export value
Raw materials & minerals $601M
Machinery & equipment $575M
Metals $561M
Precious metals & jewellery $467M
Chemicals & pharma $120M
Textiles & consumer goods $53.7M
Wood & paper products $48.5M
Processed food, beverages & tobacco $28.4M
Raw agricultural goods $9.48M
Miscellaneous $616K

Balance of trade

South Africa UAE
Current account balance
-$1.81B
2025
$80B
2024
Current account balance ranking
135/190
2025
9/190
2024
Current account balance, % of GDP
-0.42%
2025
+14.5%
2024
Goods imports
$104B
2025
$400B
2024
Goods exports
$116B
2025
$467B
2024
Service imports
$21.8B
2025
$117B
2024
Service exports
$18.1B
2025
$181B
2024
Imports of goods and services, % of GDP
29.5%
2025
92.2%
2023
Exports of goods and services, % of GDP
31.4%
2025
106.8%
2023

Economic freedom indices

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

South Africa UAE
Economic freedom 58.6 71.9
Economic freedom ranking 110/197 29/197
Property rights 48.8 62.9
Government integrity 46.7 65.3
Judicial effectiveness 64.6 34.4
Tax burden 65.4 99.9
Government spending 68.4 85.1
Fiscal health 45.3 97.6
Business freedom 67.9 84.5
Labor freedom 70.8 63.2
Monetary freedom 75.8 81.2
Trade freedom 68.8 78.6
Investment freedom 40 50
Financial freedom 40 60

Economic freedom comparison by year

South Africa
United Arab Emirates
1x
Year Economic freedom index
South Africa UAE
2026 58.6 71.9
2025 57.3 71.6
2024 55.3 71.1
2023 55.7 70.9
2022 56.2 70.2
2021 59.7 76.9
2020 58.8 76.2
2019 58.3 77.6
2018 63 77.6
2017 62.3 76.9
2016 61.9 72.6
2015 62.6 72.4
2014 62.5 71.4
2013 61.8 71.1
2012 62.7 69.3
2011 62.7 67.8
2010 62.8 67.3
2009 63.8 64.7
2008 63.4 62.6
2007 63.5 62.6
2006 63.7 62.2
2005 62.9 65.2
2004 66.3 67.2
2003 67.1 73.4
2002 64 73.6
2001 63.8 74.9
2000 63.7 74.2
1999 63.3 71.5
1998 64.3 72.2
1997 63.2 71.9
1996 62.5 71.6
1995 60.7 -

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

GeoRank.org/economy/south-africa/united-arab-emirates | CC BY

The Economic Freedom Index for South Africa is 58.6, ranking 110/197, compared to 71.9 for the United Arab Emirates, ranking 29/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

South Africa UAE
Services, % of GDP
63.1%
2025
54.9%
2024
Industry, % of GDP
24.1%
2025
44.3%
2024
Agriculture, forestry, and fishing, % of GDP
2.83%
2025
0.77%
2024
GNI, Atlas method
$406B
2025
$566B
2024
GNI per capita, PPP
$15,600
2025
$81,640
2024
Total reserves including gold
$76B
2025
$292B
2025
Total reserves ranking
35/177
2025
14/177
2025
Net foreign direct investment
-$1.85B
2025
$31.5B
2024
Net inflows of foreign direct investment
$2.33B
2024
$45.6B
2024
Net outflows of foreign direct investment
-$1.26B
2024
$77.2B
2024
Servicing debt to the IMF, % of GNI
5.74%
2024
n/a
Poverty at national poverty lines
37.9%
2022
19.5%
2020
Gross capital formation, % of GDP
13.9%
2025
26.6%
2023

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/south-africa/united-arab-emirates | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2025, retrieved 2026-07-08)
  2. International Monetary Fund (IMF) | Public Finances in Modern History (1913–1999, retrieved 2026-07-08)
  3. International Monetary Fund (IMF) | Fiscal Monitor (1991–2025, retrieved 2026-07-08)
  4. The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-07-08)
  5. U.S. Census Bureau (1985–2025, retrieved 2026-07-08)
  6. TradeMap (2024–2025, retrieved 2026-07-08)
  7. United Nations | World Population Prospects (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.