What is the Gross National Product?

The Gross National Product (GNP) is an estimate of the total final value of all products and services generated by the residents of a country in a given period. For its calculation, unlike what happens with the Gross Domestic Product, foreigners living in the country are excluded, but what is produced by nationals residing in other countries is taken into account.

The most common way to calculate the Gross National Product is by adding total family spending, domestic private investment, total government spending, net exports and any income that nationals residing abroad have obtained by subtracting the local economy from foreign residents. .

The Gross National Product is related to another economic term that is the Gross Domestic Product, although it is not exactly the same.

 

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