Gross National Product (GNP)

Gross national product is a measure of the total value of goods and services produced by a nation in a given period of time by that nation’s residents. It is a sum of personal consumption expenditure (PCE), private domestic investment (PDI), government expenditure (GE), net exports (NE) of a nation and the total income earned by a nation’s residents’ income from investments outside of the country, less the income earned by investments within the domestic economy. It ultimately is a measure of the output of a country’s residents and is very similar to gross domestic product (GDP). GDP seeks to measure a similar level of activity but excludes the difference of investment income earned on investments outside the domestic economy and within it.

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