Question

How does gross domestic product (GDP) differ from gross national income (GNI)?

Answer 1

Answer: GDP measures the money that a country makes in its own land, while GNI measures the money it makes in other countries and at home.

Answer 2

Gross Domestic Product (GDP) and Gross National Income (GNI) are closely related, but are not the same:

• Gross Domestic Product (GDP) is a monetary value that measures a nation's overall economic activity, including all the finished goods and services produced in a specific time period.

• Gross National Income (GNI) is the sum of a nation's GDP and the net income it receives from overseas. GNI measures all income of a country's residents and businesses, regardless of where it's produced, since it measures the income earned -including income from investments- that flows back into the country.