Gross National Product - GNP

Gross National product is a measure of national income and output, and is used to estimate the welfare of an economy by totaling the value of goods and services produced in an economy. GNP, along with GDP are the primary measures of national income and output. The key difference between the two is that GDP is the total output of a region, eg. America, and GNP is the total output of all nationals of a region, eg. Americans.

There are three main ways of calculating the GNP: the output approach, the income approach and the expenditure approach. The Expenditure Approach is the most popular method. It focuses on finding the total output of a nation by finding the total amount of money spent.