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Gross National Product is a measurement of the absolute value of all the final products and services [output] through a given period by the means of production through a country’s citizens.The period is variable but typically measured in per year. GNP should not be confused with net national product which implements the factors of depreciation and the consumption of capital. Comparing GNP and GDP there are distinct differences that characterize both individually. Gross domestic product (GDP) is the value of the finished domestic goods and services produced within a nation’s borders. On the other hand, gross national product (GNP) is the value of all finished goods and services produced by a country’s citizens, both domestically and abroad.

 In Depth Comparison of GNP and GDP 

Calculating GDP includes implementing several factors. These include: private consumption or consumer spending, government spending, capital spending by business, and net exports-exports minus imports.

GDP can be broken up into two categories- Real GDP and nominal GDP. A country’s real GDP is output after inflation and nominal excludes the factor of inflation. Nominal GDP is utilized in comparison of different quarters in the same year and more 2+ years typically is measured with real GDP.

GNP is typically calculated by consumption, government spending, capital spending by business, net exports, and net income by domestic residents and business from overseas investments. The differences in factors are shown in bold. While GDP incorporates four of the factors of GNP, GNP acquires and utilizes another factor that distinguishes.

Examples of GDP and GNP

GNI (Atlas method) nominal
Nominal, Atlas method – millions of current US$ (top 15)  Reliability of GDP and GNP 

Gross domestic product is the standard metric for assessing economic growth and development. However, GDP is a narrow, inadequate metric. A factor includes capturing the true, full value of health investments. Fortunately, people are realizing the inadequacy of GDP per capita as a measure of development and wellbeing. Economists recognize the importance of GDP per capita as an aggregate measure of production, but they have long argued that it does not capture important aspects of life that we all value, including health, education, distributive fairness, and the quality of the environment

In 1991, the Bureau of Economic Analysis began reporting gross domestic product as the key measure of U.S. productivity. This replaced gross national product, which had been the default measure since 1934. According to the BEA, this is because GDP was the more "appropriate" measure for aggregative production, because many other countries had adopted it and it had become an international standard. In addition, GDP was more consistent with coverage of other indicators, like employment and productivity. GNP  U.S. Bureau of Economic Analysis. "The Changeover From GNP to GDP."

Gross national product
Gross national product (GNP) is the market value of all the goods and services produced in one year by labor and property supplied by the citizens of a country. Unlike gross domestic product (GDP), which defines production based on the geographical location of production, GNP indicates allocated production based on location of ownership. In fact it calculates income by the location of ownership and residence, and so its name is also the less ambiguous gross national income.

GNP is an economic statistic that is equal to GDP plus any income earned by residents from overseas investments minus income earned within the domestic economy by overseas residents.

GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic growth".

When a country's capital or labour resources are employed outside its borders, or when a foreign firm is operating in its territory, GDP and GNP can produce different measures of total output. In 2009 for instance, the United States estimated its GDP at $14.119 trillion, and its GNP at $14.265 trillion.

The term gross national income (GNI) has gradually replaced the Gross national product(GNP) in international statistics. While being conceptually identical, the precise calculation method has evolved at the same time as the name change.

Use of GNP
The United States used GNP as its primary measure of total economic activity until 1991, when it began to use GDP. In making the switch, the Bureau of Economic Analysis(BEA) noted both that GDP provided an easier comparison of other measures of economic activity in the United States and that "virtually all other countries have already adopted GDP as their primary measure of production". Many economists have questioned how meaningful GNP or GDP is as a measure of a nation's economic well-being, as it does not count most unpaid work and counts much economic activity that is unproductive or actually destructive.

GNI vs GDP
While GDP measures the market value of all final goods and services produced in a given country, GNI measures income generated by the country's citizens, regardless of the geographic location of the income. In many states, those two figures are close, as the difference between income received by the country versus payments made to the rest of the world is not significant. According to the World Bank, the GNI of the US in 2016 was 1.5% higher than GDP.

In developing countries, on the other hand, the difference might be significant due to a large amount of foreign aid and capital inflow. In 2016, the GNI of Armenia was 4.45% higher than GDP. Based on the OECD reports, in 2015 alone, Armenia has received a total of US$409 million development assistance. Over the past 25 years, USAID has provided more than one billion USD to improve the living of the people in Armenia. GNI equals GDP plus wages, salaries, and property income of the country's residents earned abroad that also constitutes the higher GNI figure. According to the UN report on migration from Armenia in 2015–17, every year around 15–20 thousand people leave Armenia permanently, and roughly 47% of those are working migrants that leave the country to earn income and sustain the families left in Armenia. In 2016 Armenian residents received in a total of around $150 million remittances. Armenia's GNI, measured in US dollars, amounted to USD 13.5 billion in 2021, according to the National Statistical Office. This is an 8.23% increase over the prior year. GNI in USD terms in Armenia has historically ranged from a record high of USD 13.8 billion in 2019 to a record low of USD 1.06 billion in 1992. Regarding interest rates on GNI expressed in USD, Armenia is ranked 119th out of the 155 nations we monitor.

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