Gross national product (GNP) is a measure of economic growth and determines the volume of production in the country during the period.

Gross national product

Gross national product also called. Gross National Product, GNP.

It is the measure of all final goods and services produced in a given period by the national factors of production in all countries in which these factors were involved in production process.

Gross national product GNP is gross domestic product GDP completed by the balance of property income flow between the country and abroad.

GDP = K + I + G + En + Dn ;

Where

K – consumption

I – Investments

G - Government spending

En - Net exports, or export-import

Dn - Net income citizens abroad

The term "gross" means that the size of the meter GNP is not disabled values used in the process of creating buildings, machinery and equipment, etc.

Gross national product takes into account the open nature of the economy.

The gross national product is used in macroeconomic analysis, which concern not only economic growth, but also the standard of living of the country.

GNP converted into per capita, ie. The value of this indicator is divided by the number of inhabitants of a given country.