Difference Between GDP and GNP ~ University Notes

Difference Between GDP and GNP

BASIS FOR COMPARISON	GDP	GNP
Meaning	The worth of goods and services produced within the geographical limits of the country is known as Gross Domestic Product (GDP).	The worth of goods and services produced by the country's citizens irrespective of the geographical location is known as Gross National Product (GNP).
What is it?	Production of products within the country's boundary.	Production of products by the enterprises owned by the residents of the country.
Basis	Location	Citizenship
Calculation	GDP = Consumption + Investment + Government Spending + Net Export	GNP = GDP - NFIA
On which scale productivity is measured?	On a local scale	On international scale
Focus on	Domestic production	Production by nationals
Outlines	The strength of the country's domestic economy.	How the residents are contributing towards the country's economy.