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gross national product

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Gross National Product


Measure of a country's total economic activity, or the wealth of the country. GNP is usually assessed quarterly or yearly, and is defined as the total value of all goods and services produced by firms owned by the country concerned. It is measured as the gross domestic product plus income earned by domestic residents from foreign investments, minus income earned during the same period by foreign investors in the country's domestic market. GNP does not allow for inflation or for the overall value of production. It is an important indicator of an economy's strength.

The estimated 1997 GNP of all the world's nations is approximately $18 trillion.

National income is equal to gross national product, minus an allowance for replacement of ageing capital stock.

© Research Machines plc 2008. All rights reserved. Helicon Publishing is a division of Research Machines plc.


 
 

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