Tuesday, November 23, 2010

Gross National Product (GNP)

Similar as GDP, the Gross National Product (GNP) is also a macroeconomic indicator. The GNP measures the economic performance of the economy and it is released on quarterly basis. The GNP is the total income earned by a nation's resident and it measures all the goods and services made by nation's resident throughout the world.

Although the nation's products are made in foreign country plants, it is counted toward that nation's GNP. The GNP does not include the investments from foreigner. Thus, the formula for calculating GNP differs from GDP in the way of including income earned by citizen outside the country and excluding income earned by foreigner within the country.

Source: http://ikofx.com/en/fundamentalanalysis.php

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