What is GNP?

The gross national product is an estimation worth of all final products and services produced by the means of production held by a country’s people in a particular period. Personal consumption expenditures, private domestic investment, government spending, net exports, and any income made by locals from overseas investments, minus income earned inside the domestic economy by foreign residents, are frequently used to compute GNP. Net exports are the difference between what a country exports and whatever products and services it imports.
GNP= GDP + NFIA(net factor income from abroad)
Where C= consumption, I= investment, G= government spending, X=export, M=import

GNP is known as Gross National Product, and it represents the total value of goods and services produced by the residents of a country during a financial year.

GNP takes into consideration the income earned by the citizens of the country present within or outside the country. It excludes the income generated by foreign nationals who are residing in the country. GNP can be calculated as



GDP = Gross Domestic Product

NR = Net Income Receipts

NP = Net outflow to foreign assets