Comparison between GDP and GNP

Stands for:Gross Domestic ProductGross National Product
Definition:An estimated value of the total worth of a country’s production and services, on its land, by its nationals and foreigners, calculated over the course on one yearAn estimated value of the total worth of production and services, by citizens of a country, on its land or on foreign land, calculated over the course on one year
Formula for Calculation:GDP = consumption + investment + (government spending) + (exports − imports)GNP = GDP + NR (Net income inflow from assets abroad or Net Income Receipts) - NP (Net payment outflow to foreign assets)
Uses:Business, Economic ForecastingBusiness, Economic Forecasting
Application (Context in which these terms are used):To see the strength of a country’s local economyTo see how the nationals of a country are doing economically
Layman Usage:Total value of products & Services produced within the territorial boundary of a countryTotal value of Goods and Services produced by all nationals of a country (whether within or outside the country)
Country with Highest Per Capita (US$):Luxembourg ($87,400)Luxembourg ($45,360)
Country with Lowest Per Capita (US$):Liberia ($16)Mozambique ($80)
Country with Highest (Cumulative):USA ($13.06 Trillion in 2006)USA (~ $11.5 Trillion in 2005)

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