What does GNP stand for?

Gross National Product

GNP, or Gross National Product, is a way to gauge a nation’s overall economic health. It’s a tally of all the products, services, and investment income created by a country’s citizens within a single year.

Its calculation involves a two-step process. Initially, a country’s GDP, or Gross Domestic Product, is added to any income its residents earned from investments made overseas.

In the second step, any income that foreigners have made within the country is subtracted from the total. The final result is the GNP.

Example for using ‘GNP’ in a conversation

Hey! Did you hear about the new report on GNP?

Yeah, I saw it! GNP stands for Gross National Product.

Right! It’s a measure of a country’s economic performance.

Exactly! It includes products, services, and investment income produced by a country’s citizens in one year.