Gross National Product (GNP)

The gross national product (GNP) is the market value of the goods and services produced in a given period by the domestically owned factors of production of a country. It is an alternative to the gross domestic product (GDP): Both share the same accounting principles, qualities, and limitations.

The difference between the two indicators has to do with the scope of the calculation. The GDP refers to goods and services produced within the country by factors of production owned by residents and nonresidents alike. In contrast, GNP refers to goods and services produced by factors of production owned by residents, whether the production takes place within the country or abroad. For example, the salary of a U.S. national who works in Belgium without being resident in ...