GDP vs. GNP

Key Differences
Comparison Chart
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Function
Population
Investment

GDP and GNP Definitions
Gdp
Gnp
Definition of GDP
GDP is known as Gross Domestic Product and is the sign of the total economy of a country. It is defined as the total money collected after all the goods and services are completed within a time span, which usually is one year. It can also be calculated quarterly or after every year depending on the changes. Everything from total investments, the total goods consumed, the spending of the government and the difference of import export in included while calculating the GDP of a country. There are three different ways of calculating the gross domestic product which is called expenditure, output and income basis. All these processes will give the same result and if divided into segments will provide more accuracy. If the GDP is growing at a healthy rate, it results in more foreign investment because of the stability and gradual improvement in the local economy which is the sole criteria for investors who want to spend their money where they can get a good return. It shows the total economic activity that has taken place is a full document which includes the total consumption by the public and private sectors such as services and goods. Total spending of the government in case of defense, construction and education. Foreign and local investments and all the import and exports.
Definition of GNP
GNP is called Gross National Product and is a measure of total economic activity of the residents of a country. It is defined as a detailed explanation of the total value of finished goods and services of a country and its nationals. In broader terms it is the complete description of all the products and services that took place in a country and the total amount of money earned by the people which are then separated from the total income earned by the residents in the country who are not the Nationals. This measurement also includes the state citizens who are not residing in the country but contribute towards its economy. A general estimate is that a real GNP signals towards a good living standard within a country. In simple words, it is the total earning of the citizens and companies of a country minus the total income of the foreign residents and enterprises. There is a particular formula which helps in calculating the total gross national product of a country. It is usually calculated on a yearly basis especially during one budget year.