What does Gross National Product (GNP) measure?

Gross National Product (GNP) measures the total economic output produced by the residents of a country, including the value of all goods and services generated by its companies, regardless of whether those companies operate domestically or abroad. It reflects the economic performance in terms of production and gives a more comprehensive view of the nation's economic activity by including the income earned by residents from overseas investments.

Understanding GNP in this way highlights its focus not solely on domestic production but also on the economic contributions of a nation’s citizens and companies operating internationally. This makes it an important indicator for assessing the economic health and productivity of a nation as a whole.