GDP vs GNP By Aneek Gupta

1. GDP vs GNP
By Aneek Gupta
Consideration
GDP
GNP
Stands for
Gross Domestic Product
Definition
An estimated value of the total worth
An estimated value of the total worth of a
of production and services, by citizens
country’s production and services, within its
of a country, on its land or on foreign
boundary, by its nationals and foreigners,
land, calculated over the course on
calculated over the course on one year.
one year.
Formula for
Calculation
GNP = GDP + NR (Net income inflow
GDP = consumption + investment + (government from assets abroad or Net Income
spending) + (exports − imports).
Receipts) - NP (Net payment outflow
to foreign assets).
Uses
Application
(Context in which
these terms are
used)
Layman Usage
Gross National Product
Business, Economic Forecasting.
Business, Economic Forecasting.
To see the strength of a country’s local economy.
To see how the nationals of a country
are doing economically.
Total value of Goods and Services
Total value of products & Services produced produced by all nationals of a country
(whether within or outside the
within the territorial boundary of a country.
country).
Country with
Highest Per Capita
(US$)
Qatar ($102,943)
Luxembourg ($45,360).
Country with
Lowest Per Capita
(US$)
Liberia ($16).
Mozambique ($80).
USA ($13.06 Trillion in 2006).
USA (~ $11.5 Trillion in 2005).
Country with
Highest
(Cumulative)
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