|
GDP |
GNP |
|
|
Stands
for: |
Gross
Domestic Product |
Gross
National Product |
|
Definition: |
An
estimated value of the total worth of a country’s production and services, on
its land, by its nationals and foreigners, calculated over the course on one
year |
An
estimated value of the total worth of production and services, by citizens of
a country, on its land or on foreign land, calculated over the course on one
year |
|
Formula
for Calculation: |
GDP
= consumption + investment + (government spending) +
(exports − imports) |
GNP
= GDP + NR (Net income inflow from assets abroad or Net Income Receipts) - NP
(Net payment outflow to foreign assets) |
|
Uses: |
Business,
Economic Forecasting |
Business,
Economic Forecasting |
|
Application
(Context in which these terms are used): |
To
see the strength of a country’s local economy |
To
see how the nationals of a country are doing economically |
|
Layman
Usage: |
Total
value of products & Services produced within the territorial
boundary of a country |
Total
value of Goods and Services produced by all nationals of a country (whether
within or outside the country) |
|
Country
with Highest Per Capita (US$): |
Luxembourg
($87,400) |
Luxembourg
($45,360) |
|
Country
with Lowest Per Capita (US$): |
Liberia
($16) |
Mozambique
($80) |
|
Country
with Highest (Cumulative): |
USA
($13.06 Trillion in 2006) |
USA
(~ $11.5 Trillion in 2005) |