# Gross national income

(Redirected from Gross National Income)

The Gross national income (GNI) consists of: the personal consumption expenditure, the gross private investment, the government consumption expenditures, the net income from assets abroad (net income receipts), and the gross exports of goods and services, after deducting two components: the gross imports of goods and services, and the indirect business taxes.

The GNI is similar to the gross national product (GNP), except that in measuring the GNP one does not deduct the indirect business taxes.

## GNI versus GDP

For example, the profits of a US-owned company operating in the UK will only count towards US GNI and UK GDP. If a country becomes heavily indebted, and pays large amounts of interest to service this debt, this will be reflected in a decreased GNI but not a decreased GDP. If a country sells off its resources to entities outside their country this will also be reflected over time in decreased GNI, but not decreased GDP. Therefore, the GDP appears more attractive for countries with increasing national debt and decreasing assets.

GNP is a concept that goes hand in hand with GNI, GDP, and NNI. In contrast to the GNI, the GNP does not account for the balance of cross-country income, such as interest and dividends. In contrast to the GDP, the GNP account for the values of products and services based on citizenship of the owners rather than the territory of the activity

## How to Calculate the GNI

As GNI is an add up of Net Income from abroad and the GDP, one can calculate the GNI by the following formula.

$GNI=GDP+(FL-DL)+NCI=C+I+G+(X-M)+(FL-DL)+NCI$

Where FL and DL are respectively the foreign and domestic income from labor, and NCI the net capital inflow. For example, if a country A's nominal GDP is \$20,000, the domestic income from labor \$3,000 and the foreign income from labor \$5,000, and the country received a \$10,000 donation from another country's charity organization, the GNI of country A would be \$32,000.

## List of countries by GNI (nominal, Atlas method, millions of US\$,[1] top 10)

Rank 2012[2] 2010 2009 2008
1  United States 15,734,567  United States 14,600,828  United States 14,223,686  United States 14,506,142
2  China 7,748,903  China 5,700,018  China 4,857,623  Japan 4,853,005
3  Japan 6,105,798  Japan 5,369,116  Japan 4,785,450  China 4,042,883
4  Germany 3,603,895  Germany 3,537,180  Germany 3,473,814  Germany 3,504,510
5  France 2,742,891  France 2,749,821  France 2,750,418  United Kingdom 2,799,960
6  United Kingdom 2,418,464  United Kingdom 2,399,292  United Kingdom 2,538,578  France 2,700,770
7  Brazil 2,311,147  Italy 2,125,845  Italy 2,114,668  Italy 2,115,482
8  Italy 2,061,253  Brazil 1,830,392  Brazil 1,563,126  Spain 1,449,186
9  India 1,890,363  India 1,566,636  Spain 1,472,046  Canada 1,446,669
10  Russia 1,822,654  Spain 1,462,894  India 1,405,064  Brazil 1,433,699