---
title: "What is GNP? How is it calculated?"  
description: "What is GNP? How is it calculated?"  
author: "nitya singh"  
published: 2018-03-05  
canonical: https://answers.mindstick.com/qa/36523/what-is-gnp-how-is-it-calculated  
category: "business & finance"  
tags: ["business finance"]  
reading_time: 2 minutes  

---

# What is GNP? How is it calculated?

What is GNP? How is it [calculated](https://answers.mindstick.com/qa/31699/what-is-sensex-and-how-it-is-calculated)?

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## Answers

### Answer by Subhamay Ganai

## Gross National Product (GNP): Definition and Calculation

[**Gross National Product (GNP)**](https://answers.mindstick.com/qa/36523/what-is-gnp-how-is-it-calculated) is a measure of the total income earned by a country's residents and businesses, including those located abroad. GNP provides a comprehensive view of a country's economic output and is used as a key indicator of a country's economic health and development.

### Definition

**Gross National Product (GNP)** is defined as the total income earned by a country's residents and businesses, regardless of their location. GNP includes the income earned by a country's citizens and [**businesses**](https://answers.mindstick.com/qa/97994/what-are-some-good-businesses-to-start) abroad, as well as the income earned by foreign citizens and businesses within the country.

GNP is often used as a key indicator of a country's economic health and development. It provides a comprehensive view of a country's economic output, including its production of goods and services, investments, and net income from abroad.

![What is GNP How is it calculated](https://answers.mindstick.com/QuestionAnswer/4827bf34-81b8-4e9e-aa34-ffcb999f8932/images/4870152c-2532-4e8f-b312-2af01bf21d03.png)

### Calculation of GNP

GNP is calculated by adding up the total income earned by a country's residents and businesses, including those located abroad. This includes the value of all goods and services produced within the country, as well as the net income received from abroad.

**The calculation of GNP is based on the following formula: GNP = GDP + Net income received from abroad**

Where **GDP** is the [**Gross Domestic Product**](https://en.wikipedia.org/wiki/Gross_domestic_product), which measures the total income earned by a country's residents and businesses within the country, the net income received from abroad is the difference between the income earned by a country's citizens and businesses abroad and the income earned by foreign citizens and businesses within the country.

**Gross National Product (GNP)** measures the total income earned by a country's residents and businesses, including those located abroad. GNP provides a comprehensive view of a country's economic output and is used as a key indicator of a country's economic health and development. Understanding GNP is essential for analyzing a country's economic trends and making informed decisions about investments and trade. Whether you are a business owner, investor, or analyst, GNP is an important metric to track and understand.


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