GNP v GDP definition
GNP v GDP
GNP is related to another crucial economic measure: GDP (gross domestic product). GDP calculates all output produced within a country’s borders regardless of who owns the means of production.
GNP begins with GDP. Residents’ investment income from overseas investments gets added, then foreign residents’ investment income earned within a country is subtracted.
GNP and GDP produce different results for total output. In 2021, the UK GDP was lower than the GNP at €2.5 million to €3.1 million, respectively according to statista.
GDP is the most commonly quoted measure of a country’s economic activity. GNP is valued because major differences between the two measurements could indicate that a country is more engaged in international trade, production and finance operations.