Foreign direct investment, net outflows (% of GDP)

This economic metric captures the flow of capital invested by domestic entities in foreign enterprises, quantified as a percentage of the nation’s overall economic output. It encompasses various forms of direct investment, including equity stakes, reinvested profits, and supplementary capital contributions, indicating the extent to which residents engage in cross-border ventures. A key feature of this investment is the strategic control or influence exercised by investors over foreign operations, marked by ownership stakes of 10% or more. By analyzing the net outflows, policymakers and analysts gain insights into the outward investment tendencies of an economy, reflecting confidence in international markets, potential profitability, and the economic interdependence of nations. Source: