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
|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|