GDP and GNP are two of the most commonly used economic indicators. They both measure a country's economic performance, but there is an important distinction between them. This article will explain the difference between GDP and GNP and why they are so important in understanding a nation's economy.
About Difference Between Gdp And Gnp
| GDP | GNP |
|---|---|
| Measures the value of goods & services produced within a country's borders | Measures the total income earned by citizens and companies abroad |
| Includes domestic production, regardless of ownership | Include only production owned by nationals |
| Calculated from all economic activity in a country | Calculated from the sum of all incomes generated overseas |
| Affected by imports/exports | Unaffected by imports/exports |
| Considered to be a more accurate measure of economic growth | Used as an indicator of a nation's financial standing |
| Focus on output | Focus on income |
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