For example, it's possible that GDP is going up but median income going down and poverty rate increasing. E.g. GNP = GDP + NR (Net income inflow from assets abroad or Net Income Receipts) - NP (Net payment outflow to foreign assets). Gross Domestic Product can also be calculated on a per capita (or per person) basis to give a relative example of the economic development of nations. If economic activity occurs in the country but the income from this activity accrues to foreigners, it will still be counted in GDP but not in GNP.

The three methods yield the same result because total expenditures on goods and services (GNE) is equal to the value of goods and services produced (GNP) which is equal to the total income paid to the factors that produced the goods and services (GNI). On the other hand, Gross National Product or GNP is the aggregate market value of all goods and services created or produced during a particular period and net factor income from abroad.

GDP is perhaps the most widely used metric to measure the health of economies. There is a fight between the two measures, regarding which one is a better indicator of economic strength.

The income approach and the closely related output approach sum wages, rents,interest, profits, non income charges, and net foreign factor income earned. GDP (Gross Domestic Product) is a measure of (national income = national output = national expenditure) produced in a particular country. To see how the nationals of a country are doing economically. Another example contrasts Brazil and UAE. if Microsoft Corporation has a 100% owned subsidiary in India, and that office exports US$2 Billion worth of services out of India, then US$2 Billion will be added to the GDP of India. Right now, GNP is around 101 percent of GDP, and since the 1950s, that ratio has only varied between 100 and 102 percent. GNP and GDP both reflect the national output and income of an economy. The significant differences between GDP and GNP are discussed in this article excerpt. In general, the higher the per capita GDP, the higher the SPI. Other important metrics include health of the population, infant mortality rates, and malnutrition rates, none of which are captured by GDP. GDP = Consumption + Investment + Government Spending + Net Export. The most common approach to measuring and understanding GDP is the expenditure method: GDP = consumption + investment + (government spending) + (exports − imports) "Gross" means depreciation … The expenditure approach determines aggregate demand, or Gross National Expenditure, by summing consumption, investment, government expenditure and net exports. However, it will not be added to the GNP figure since the export is done by a US company and not an Indian company. GDP (or Gross Domestic Product) may be compared directly with GNP (or Gross National Product), to see the relationship between a country's export business and local economy. The exact relationship will depend on the nationality status of the company doing the export or import. GDP outlines the strength of the domestic economy of a country. These figures can also be used to analyze the distribution of wealth throughout a society, or the average purchasing power of an individual in the country etc. A region's GDP is one of the ways of measuring the size of its local economy whereas the GNP measures the overall economic strength of a country. Usually this is calculated over a period of one year, but there may be analysis of short and long term trends to be used for economic forecast. A region's GDP is one of the ways of measuring the size of its local economy whereas the GNP measures the overall economic strength of a country. On the other hand, Ireland GDP in 2010 was $211.39 billion[3] and GNP $149.54 billion.[4].

The main difference is that GNP (Gross National Product) takes into account net income receipts from abroad. [2] The numbers for the U.S. are not very divergent because U.S. income receipts and payments are roughly in balance.

An estimated value of the total worth of a country’s production and services, within its boundary, by its nationals and foreigners, calculated over the course on one year. The strength of the country's domestic economy. Expenditure Approach to calculating GNP:GNP = GDP + NR (Net income from assets abroad (Net Income Receipts)). However, Costa Rica performs significantly better than Iran on measures of social progress. Web. And at about the 4:45 mark, he talks about the difference between GDP and GNP: Stiglitz says that around 1990, GDP supplanted GNP as the primary measure of economic progress. GDP (or Gross Domestic Product) may be compared directly with GNP (or Gross National Product), to see the relationship between a country's export business and local economy. However, you look somewhat more profound, you will come into know that both the terms hold distinctive implications. GNP stands for Gross National Product.

GDP and GNP figures are both calculated on a per capita basis to give a portrait of a country's economic development.

It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time. Increase in exports of a country will lead to increase in both GDP and GNP of the country. GDP also does not measure environmental impact of growth, nor sustainability. Total value of products & Services produced within the territorial boundary of a country.

However, sometimes increase in exports might only lead to increase in GDP and not GNP.

8 Major Limitations of Gross National Product (GNP) Article Shared by M. Agarwal. That translates to a sum of all industrial production, work, sales, business and service sector activity in the country. The monetary value of all the goods and services produced within the geographical limits of the country is known as GDP.