Gross National Product, also known as GNP for its acronym, could be defined as the set of goods and services produced and sold by nationals of a country during a specific period of time (usually 1 year).

GNP is closely related to the concept GDP (Gross Domestic Product). Basically the concept would be the same if it weren’t for the fact that GNP does not include the work of foreigners in the country and does include the work of nationals who live outside of it.

GNP calculation

For the calculation of GNP, the GDP amount will be used as a base and the income that national residents obtain abroad (RRN) will be added and the income obtained by foreign residents within the country (RRE) will be subtracted.

The formula would be the following:

GNP = GDP + RRN - RRE

GNP results

• In open economies, that is, in countries with income exchange with abroad, GNP and GDP will be different.

• In closed economies, that is, in countries without income movement between nationals and foreigners, GNP and GDP will coincide.

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