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 labor 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 ownership.

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]

Basically, GNP is the total value of all final goods and services produced within a country in a particular year, plus income earned by its citizens (including income of those located abroad)(no need to minus income of non resident as income includes of only its citizen). GNP measures the value of goods and services that the country's citizens produced regardless of their location. GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of living, all other things being equal.

Gross National Product (GNP) is often contrasted with Gross Domestic Product (GDP). While GNP measures the output generated by a country's enterprises (whether physically located domestically or abroad) GDP measures the total output produced within a country's borders - whether produced by that country's own local firms or by foreign firms.

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 before 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]

List of countries by GNP (GNI) (nominal, Atlas method) (millions of 2014 US$)[5] (Top 10)[edit]

Rank 2013 2012 2011 2010 2009 2008
1  United States 17,057,500  United States 16,514,500  United States 15,848,300  United States 15,121,100  United States 14,492,900  United States 14,794,200
2  China 9,196,167  China 8,187,349  China 7,251,603  China 5,904,605  Japan 5,174,905  Japan 5,011,656
3  Japan 5,078,764  Japan 6,126,320  Japan 6,089,513  Japan 5,643,192  China 4,981,701  China 4,550,407
4  Germany 3,735,969  Germany 3,507,763  Germany 3,710,155  Germany 3,376,487  Germany 3,380,541  Germany 3,665,918
5  France 2,784,573  France 2,656,034  France 2,841,425  France 2,617,166  France 2,668,048  France 2,881,676
6  United Kingdom 2,491,086  United Kingdom 2,451,713  United Kingdom 2,495,390  United Kingdom 2,312,957  United Kingdom 2,235,349  United Kingdom 2,282,140
7  Brazil 2,203,224  Brazil 2,213,546  Brazil 2,429,989  Brazil 2,104,398  Italy 2,101,406  Italy 2,282,140
8  Italy 2,058,857  Italy 2,003,234  Italy 2,183,267  Italy 2,045,659  Brazil 1,588,139  Russia 1,614,444
9  Russia 2,017,058  Russia 1,949,304  India 1,864,067  India 1,690,503  Spain 1,427,045  Brazil 1,614,369
10  India 1,855,591  India 1,837,283  Russia 1,844,460  Canada 1,582,763  India 1,357,362  Spain 1,550,791
  • as can be seen almost all European countries couldn't get their GNP at pre 2009 levels back, with the exception for Germany and Russia who could increase their GDP level of that before the crisis. Britain's Crisis started earlier therefore the UK's peak was in 2007, accounting for a GNP of about 2.891 Trillion Dollars in that year.[6]

GNP Growth[edit]

GNP Growth
2008 2009 2010 2011
 USA - 0.14% Decline - 4.49% Decline + 4.16% Growth + 1.87% Growth
 United Kingdom - 0.10% Decline - 4.81% Decline + 1.42% Growth + 0.90% Growth

Source: Helgi Library,[7] World Bank

See also[edit]


  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. 
  5. ^ GNI, Atlas method
  6. ^
  7. ^ | | 2014-02-11


External links[edit]