Gross national product

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"GNP" redirects here. For other uses, see GNP (disambiguation).

Gross national product (GNP) is the market value of all the products and services produced in one year by labour and property supplied by the citizens of a country. Unlike gross domestic product (GDP), which defines production based on the geographical location of production, GNP allocates production based on location of ownership.

GNP is an economic statistic that is equal to GDP plus any income earned by residents from overseas investments minus income earned within the domestic economy by overseas residents.

GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic growth".[1]

When a country's capital or labour resources are employed outside its borders, or when a foreign firm is operating in its territory, GDP and GNP can produce different measures of total output. In 2009 for instance, the United States estimated its GDP at $14.119 trillion, and its GNP at $14.265 trillion.[2]


The United States used GNP as its primary measure of total economic activity until 1991, when it began to use GDP.[3] In making the switch, the Bureau of Economic Analysis (BEA) noted both that GDP provided an easier comparison of other measures of economic activity in the United States and that "virtually all other countries have already adopted GDP as their primary measure of production."[4]

See also


  1. Daly, Herman E. (1996), Beyond Growth. Beacon Press
  2. "Flow of Funds Accounts of the United States" (PDF). Board of Governors of the Federal Reserve System. 17 September 2010. p. 9. 
  3. "BEA: Glossary "G"". Bureau of Economic Analysis. 5 September 2007. 
  4. "Gross Domestic Product as a Measure of U.S. Production" (PDF). August 1991. 


External links