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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

GNP  

Definition 1.

Gross National Product. GDP plus the income accruing to domestic residents from productive activities abroad, minus the income earned in domestic markets accruing to foreigners abroad. GDP includes only goods and services produced within the geographic boundaries of the U.S., regardless of the producer's nationality. GNP doesn't include goods and services produced by foreign producers, but does include goods and services produced by U.S. firms operating in foreign countries. For example, if a U.S. firm was operating a chain of stores in France, the goods and services produced by those stores would not be included in the GDP, but would be included in the GNP. As the global economy grows, the difference in GDP and GNP is falling for developed countries like the U.S., but for smaller, developing countries, the difference can be substantial.
 
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