Gross National Product

Gross National Product

"GNP measures the output of the citizens of the U.S. and the income from assets owned by U.S. entities, regardless of where they are located".^[1]

Since GNP includes output from multinational corporations, it may not be a true indication of how the U.S. economy is performing. This has led to the development of GDP, gross domestic product, a refined picture of the economy that is limited to domestic production.

GNP in mature economies such as the United States grows at a much slower rate than in emerging nations. The growth of output is measured in real terms, meaning that increases in output due to inflation have been removed.