0

Most people have heard of Gross Domestic Product (sometimes called Gross Domestic Income) or GDP but few have heard of Gross National Product (GNP). To understand GNP you first have to understand GDP and fuller details can be found elsewhere on this site.

In actual fact there is no internationally agreed definition of terms like these and even in Britain you will find different political parties, media commentators, economists and academics with sometimes rather widely divergent definitions.

However a simple definition of the diference between GNP and GDP is this:

  • GDP is the total monetary value of all goods and services produced domestically by a country. It includes income earned domestically by foreigners, but does not include income earned by domestic residents on foreign ground.
  • GNP is the total monetary value of goods and services produced by domestic residents. It includes income that nationals earn abroad, but does not include income earned within the country by foreigners.

Clear? I thought not!

Related Articles: 

Category: Guide to City Jargon 

 

No comments yet.

Leave a Reply