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The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP), plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents (Todaro & Smith, 2011: 44) (all figures in millions of US dollars). Comparing GNI to GDP shows the degree to which a nation's GDP represents domestic or international activity. GNI has gradually replaced GNP in international statistics.^[1][2] While being conceptually identical, it is calculated differently.^[3] GNI is the basis of calculation of the largest part of contributions to the budget of the European Union.^[4] In February 2017, Ireland's GDP became so distorted from the base erosion and profit shifting ("BEPS") tax planning tools of U.S. multinationals, that the Central Bank of Ireland replaced Irish GDP with a new metric, Irish Modified GNI*. In 2017, Irish GDP was 162% of Irish Modified GNI*.

Comparison of GNI and GDP

GNI=GDP+Money flowing from foreign countries−Money flowing to foreign countries{displaystyle GNI=GDP+Money~flowing~from~foreign~countries-Money~flowing~to~foreign~countries}

Comparison of GNI (Atlas method), GNI and GDP
2016 World Bank (millions of current US$)

No.	Country	GNI (Atlas method)[5]		GNI[6]		GDP[7]
		value (a)	a - GDP	value (b)	b - GDP
1	United States	18,357,322	-267,153	18,968,714	344,239	18,624,475
2	China	11,374,227	175,082	11,154,194	-44,951	11,199,145
3	Japan	4,816,892	-123,267	5,096,371	156,212	4,940,159
4	Germany	3,624,638	146,841	3,536,579	58,783	3,477,796
5	United Kingdom	2,778,488	130,590	2,587,657	-60,242	2,647,899
6	France	2,590,030	124,576	2,504,684	39,230	2,465,454
7	India	2,212,306	-51,486	2,235,524	-28,268	2,263,792
8	Italy	1,923,095	64,182	1,863,085	4,172	1,858,913
9	Brazil	1,835,993	39,806	1,758,527	-37,660	1,796,187
10	Canada	1,584,177	54,417	1,508,495	-21,265	1,529,760

GNI (Atlas method) nominal

Nominal, Atlas method – millions of current US$ (top 15)^[1]

Rank	2014		2013		2012		2011		2010		2009		2008		2007		2006
1	United States	17,611,491	United States	17,001,290	United States	16,501,016	United States	15,727,291	United States	15,143,137	United States	14,740,580	United States	15,002,428	United States	14,651,211	United States	14,345,565
2	China	10,096,966	China	9,110,333	China	7,934,721	China	6,726,270	China	5,752,320	China	4,856,999	Japan	4,835,553	Japan	4,812,119	Japan	4,931,413
3	Japan	5,339,076	Japan	5,899,905	Japan	6,101,579	Japan	5,775,633	Japan	5,376,601	Japan	4,797,984	China	4,070,860	Germany	3,348,291	Germany	3,160,529
4	Germany	3,853,623	Germany	3,809,927	Germany	3,754,154	Germany	3,801,607	Germany	3,662,524	Germany	3,588,452	Germany	3,601,765	China	3,283,519	China	2,685,206
5	France	2,844,284	France	2,869,883	France	2,824,713	France	2,889,304	France	2,847,703	France	2,831,553	United Kingdom	2,904,224	United Kingdom	2,835,805	United Kingdom	2,645,489
6	United Kingdom	2,801,499	United Kingdom	2,695,974	United Kingdom	2,612,525	United Kingdom	2,542,593	United Kingdom	2,540,957	United Kingdom	2,666,939	France	2,800,864	France	2,576,642	France	2,414,820
7	Brazil	2,429,720	Brazil	2,486,874	Brazil	2,432,061	Italy	2,237,958	Italy	2,234,508	Italy	2,227,358	Italy	2,222,143	Italy	2,093,640	Italy	1,989,288
8	Italy	2,147,247	Italy	2,130,760	Italy	2,143,583	Brazil	2,207,921	Brazil	1,916,260	Brazil	1,572,431	Spain	1,490,975	Canada	1,356,017	Spain	1,241,641
9	India	2,027,964	Russia	1,981,791	India	1,892,548	India	1,755,712	India	1,555,615	Spain	1,519,339	Canada	1,484,345	Spain	1,353,031	Canada	1,224,994
10	Russia	1,930,634	India	1,952,847	Russia	1,823,299	Canada	1,617,083	Canada	1,511,465	Canada	1,447,937	Brazil	1,427,429	Brazil	1,152,772	South Korea	966,585
11	Canada	1,785,099	Canada	1,848,274	Canada	1,773,264	Russia	1,547,010	Spain	1,496,363	India	1,392,779	Russia	1,368,593	India	1,117,463	India	941,326
12	Australia	1,444,201	Australia	1,514,269	Spain	1,396,221	Spain	1,455,758	Russia	1,425,123	Russia	1,318,495	India	1,229,139	South Korea	1,091,726	Mexico	921,879
13	Spain	1,366,027	Spain	1,376,929	Australia	1,359,417	South Korea	1,125,787	South Korea	1,053,302	South Korea	1,037,381	South Korea	1,118,647	Russia	1,079,991	Brazil	898,063
14	South Korea	1,365,797	South Korea	1,298,958	South Korea	1,232,164	Australia	1,119,902	Mexico	1,026,316	Mexico	988,663	Mexico	1,074,555	Mexico	1,000,700	Russia	830,146
15	Mexico	1,237,533	Mexico	1,202,800	Mexico	1,167,292	Mexico	1,068,140	Australia	1,025,186	Australia	954,754	Australia	900,062	Netherlands	809,106	Netherlands	753,205

GNI (Atlas method) PPP

PPP – millions of international dollars (top 15)^[2]

Rank	2016		2014		2013		2012		2011		2010		2009		2008		2007		2006
1	China	21,366,057	China	17,966,893	United States	17,091,162	United States	16,596,084	United States	15,802,898	United States	15,121,133	United States	14,494,460	United States	14,791,194	United States	14,585,723	United States	14,140,770
2	United States	18,749,688	United States	17,823,200	China	16,418,959	China	15,112,256	China	13,680,536	China	12,305,378	China	11,017,654	China	10,090,052	China	8,991,462	China	7,637,790
3	India	8,594,226	India	7,292,778	India	6,699,996	India	6,179,567	India	5,794,517	India	5,314,158	India	4,783,856	Japan	4,433,212	Japan	4,408,333	Japan	4,180,595
4	Japan	5,443,842	Japan	4,846,688	Japan	4,844,841	Japan	4,700,740	Japan	4,522,723	Japan	4,437,371	Japan	4,192,471	India	4,376,743	India	4,138,987	India	3,658,435
5	Germany	4,094,786	Germany	3,843,163	Germany	3,707,775	Germany	3,590,009	Germany	3,534,151	Germany	3,305,460	Germany	3,107,922	Germany	3,186,644	Germany	3,070,077	Germany	2,906,891
6	Russia	3,305,725	Russia	3,237,388	Russia	3,108,506	Russia	3,254,184	Russia	3,124,400	Russia	2,837,672	Russia	2,678,150	Russia	2,797,648	United Kingdom	2,325,258	United Kingdom	2,270,766
7	Brazil	3,075,469	Brazil	3,209,390	Brazil	3,081,266	Brazil	2,984,015	Brazil	2,923,559	Brazil	2,757,522	Brazil	2,453,733	Brazil	2,436,486	Russia	2,324,769	Brazil	2,103,694
8	Indonesia	2,929,424	France	2,655,517	France	2,625,346	France	2,494,655	France	2,495,100	France	2,381,563	France	2,291,855	United Kingdom	2,343,012	Brazil	2,288,657	France	2,094,160
9	France	2,835,242	Indonesia	2,592,315	United Kingdom	2,483,802	United Kingdom	2,394,758	United Kingdom	2,343,934	United Kingdom	2,281,280	United Kingdom	2,272,667	France	2,310,555	France	2,224,097	Russia	2,071,669
10	United Kingdom	2,763,382	United Kingdom	2,550,078	Indonesia	2,436,810	Indonesia	2,275,802	Italy	2,124,755	Italy	2,054,019	Italy	2,016,501	Italy	2,050,607	Italy	1,971,909	Italy	1,865,144
11	Italy	2,316,529	Italy	2,155,153	Italy	2,148,502	Italy	2,134,839	Indonesia	2,106,961	Indonesia	1,949,021	Indonesia	1,798,541	Indonesia	1,705,066	Indonesia	1,568,263	Indonesia	1,434,248
12	Mexico	2,262,919	Mexico	2,111,206	Mexico	1,939,753	Mexico	1,941,682	Mexico	1,859,264	Mexico	1,710,132	Mexico	1,597,656	Mexico	1,611,372	Mexico	1,516,236	Mexico	1,432,295
13	Turkey	1,907,486	South Korea	1,696,955	South Korea	1,652,081	South Korea	1,627,812	South Korea	1,568,631	South Korea	1,506,812	Spain	1,492,658	Spain	1,508,412	Spain	1,447,718	Spain	1,346,277
14	South Korea	1,833,914	Canada	1,576,495	Saudi Arabia	1,549,822	Spain	1,497,167	Spain	1,494,181	Spain	1,486,687	South Korea	1,393,108	South Korea	1,405,612	South Korea	1,350,407	South Korea	1,246,382
15	Saudi Arabia	1,799,740	Spain	1,556,600	Canada	1,535,440	Saudi Arabia	1,488,100	Canada	1,401,447	Canada	1,336,646	Canada	1,279,702	Canada	1,313,134	Canada	1,271,027	Canada	1,212,200

Gross national product

Gross national product (GNP) is the market value of all the goods and services produced in one year by labor and property supplied by the citizens of a country. Unlike gross domestic product (GDP), which defines production based on the geographical location of production, GNP indicates allocated production based on location of ownership. In fact it calculates income by the location of ownership and residence, and so its name is also the less ambiguous gross national income.

GNP is an economic statistic that is equal to GDP plus any income earned by residents from overseas investments minus income earned within the domestic economy by overseas residents.

GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic growth".^[8]

When a country's capital or labour resources are employed outside its borders, or when a foreign firm is operating in its territory, GDP and GNP can produce different measures of total output. In 2009 for instance, the United States estimated its GDP at $14.119 trillion, and its GNP at $14.265 trillion.^[9]

The term gross national income (GNI) has gradually replaced the Gross national product (GNP) in international statistics.^[1][2] While being conceptually identical, the precise calculation method has evolved at the same time as the name change.^[10]

Use of GNP

The United States used GNP as its primary measure of total economic activity until 1991, when it began to use GDP.^[11] In making the switch, the Bureau of Economic Analysis (BEA) noted both that GDP provided an easier comparison of other measures of economic activity in the United States and that "virtually all other countries have already adopted GDP as their primary measure of production".^[12] Many economists have questioned how meaningful GNP or GDP is as a measure of a nation's economic well-being, as it does not count most unpaid work and counts much economic activity that is unproductive or actually destructive.^[13]

See also

• Net national income


• Measures of national income and output


• Gross national income in the European Union


• Lists of countries by GNI per capita


• National average salary


• 
  Gross domestic product (GDP)


• 
  Gross national product (GNP)


• Irish modified GNI (or GNI*)

References