Product Code Database
The gross national income ( GNI), previously known as gross national product ( GNP), is the total amount of earned by the residents of a country. It is equal to gross domestic product (GDP), plus factor incomes received from non-resident by residents, minus factor income paid by residents to non-resident. (2025). 9780138013882, Addison-Wesley. ISBN 9780138013882
In contrast to GDP, GNI is not a concept of value added, but a concept of income. GNI is the basis of calculation of the largest part of contributions to the Budget of the European Union. In February 2017, Ireland's GDP became so distorted from the base erosion and profit shifting ("BEPS") tax planning tools of U.S. multinationals, that the Central Bank of Ireland replaced Irish GDP with a new metric, Irish Modified GNI (or "GNI*"). In 2017, Irish GDP was 162% of Irish Modified GNI.
GNI contrast with net national income : NNI = GNI - Depreciation
The Atlas method can be applied to correct for fluctuating .
GNP was defined in the 1953 SNA as :
"the market value of product before deduction of provisions of consumption of fixed capital, attributable to factors of production supplied by normal residents of the given country"
Despite framing GNP as a concept of production, the attribution of the value was defined by the income earned by the owner of the factor of production.
In the 1993 revision to the SNA, the GNP definition was reframed from the point of view of the residents receiving income rather than the point of view of the factor of production. To reflect this, GNP was renamed GNI; the "national" part was kept as it is embedded in economic usage, even though the same concept of residence is used to define both GDP and GNI.
GNP continues to be used in the National income and product accounts to refer to GNI calculated for expenditure data.
GNI also includes the propriety income: rent, interest, and "profit". The "profit" included both distributed income of corporations (dividends) and reinvested earnings on foreign direct investment, those are profit retained by the corporation. Like in the IMF balance of payments manual they are treated as if they were distributed to foreign direct investors in proportion to their ownership of the equity of the enterprise and then reinvested by them using additions in equity.
The GNI of European Union countries also included subsidies received from the EU and excluded as the EU receives those.
GNI contrasts with Gross national disposable income which includes all current transfer income like international cooperation and remittance.
| + Comparison of GNI (Atlas method). GNI and GDP 2023 World Bank (millions of current US$) ! rowspan="2" | Atlas method) !! colspan="2" >GNI !! GDP |
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 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".Daly, Herman E. (1996), Beyond Growth. Beacon Press
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.
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 US$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 US$13.8 billion in 2019 to a record low of US$1.06 billion in 1992. Regarding interest rates on GNI expressed in USD, Armenia is ranked 119th out of the 155 monitored nations.
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.
Lists of GNI per capita
See also
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