Gross National Product (GNP)

Related to GDP, gross national product (GNP) is another important economic measure used to assess a country’s growth or depreciation. It’s an estimate of the total value of all the final goods and services produced by a country’s residents. Usually, it’s calculated by taking the sum of all personal consumption expenditures: private domestic investment, government spend, net exports, and any income earned by residents who invest overseas, away from the income earned within the country’s economy by foreign residents. Put more simply, GNP begins with GDP, adds a country’s residents’ investment income from overseas investing, and then subtracts foreign residents’ investment income which is earned within a country. depreciation =a decrease in the value of a currency relative to other currencies consumption expenditures = spending on goods and services domestic/overseas investment = a measure of the amount of money that businesses invest within their own country/a foreign country government spend = the total amount of money that the government spends in a particular period on education, healthcare, defense, and social protections net exports = the value of a country's total exports minus the value of its total imports See also Gross Domestic Product