What is Gross National Product?

Gross National Product (GNP) refers to the total monetary value of all final goods and services produced by the nationals of a country within a specific time period, usually a year. It includes:

• Domestic production by citizens (including those working abroad).
• Net income from foreign investments (income earned by citizens abroad minus income earned by foreigners within the country).

Unlike Gross Domestic Product (GDP), which measures production within a country’s borders, GNP accounts for economic activity by its citizens, regardless of location. It is calculated as:

GNP = GDP + Net Factor Income from Abroad

This metric helps assess a nation’s overall economic performance, including contributions from its citizens overseas.