Foreign direct investment, net inflows (% of GDP)

This economic indicator reflects the net investment inflow into a country's economy from foreign investors aiming to exert significant control, typically defined as acquiring at least 10% of voting rights in a local enterprise. It encompasses various components, including equity capital, earnings reinvested into the enterprise, long-term capital, and short-term financial movements, as detailed in the balance of payments. By relating these inflows to the nation's gross domestic product, this measure provides insight into the relative significance of foreign investments within the economy. A high ratio could signify a strong investment climate and economic integration, while lower values may indicate barriers to foreign participation or a less attractive market for international investors. Source: