The Gross National Product (“GNP”)  refers to the sum of goods and services that are produced by nationals of a country. It is highly similar to the Gross Domestic Product (“GDP”) with a critical difference in how it treats foreign residents and domestic residents abroad. GDP is the sum of all goods and services that are produced within the borders of a country. The economic activity of a German resident in South Carolina, for instance, would count in US GDP. However, since it is produced by a German resident, it would not count in US GNP. On the flip side, a US citizen working in Mexico would count in US GNP but not US GDP.

More From Capital

No posts found