GDP (or Gross Domestic Product) and GNP (Gross National Product) represent the size and strength of the economy. While both concepts are similar, their definition, calculation and applications are different from each other. Comparison chart
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Definition:| An estimated value of the total worth of a country’s production and services, calculated over the course on one year| GDP (+) total capital gains from overseas investment (-) income earned by foreign nationals domestically| Stands for:| Gross Domestic Product| Gross National Product| Formula for Calculation:| GDP = consumption + investment + (government spending) + (exports − imports)| GNP = GDP + NR (Net income from assets abroad (Net Income Receipts))| Layman Usage:| Total value of products & Services produced within the territorial boundary of a country| Total value of Goods and Services produced by all nationals of a country (whether within or outside the country)| Uses:| Business, Economic Forecasting| Business, Economic Forecasting| Country with Highest Per Capita (US$):| Luxembourg ($87,400)| Luxembourg ($45,360)| Country with Lowest Per Capita (US$):| Liberia ($16)| Mozambique ($80)| Country with Highest (Cumulative):| USA ($13.06 Trillion in 2006)| USA (~ $11.5 Trillion in 2005)| edit GDP and GNP Definitions
GDP stands for Gross Domestic Product, the total worth estimated in currency values of a nation’s production in a given year, including service sector, research, and development. That translates to a sum of all industrial production, work, sales, business and service sector activity in the country. Usually this is calculated over a period of one year, but there may be analysis of short and long term trends to be used for economic forecast. Gross Domestic Product can also be calculated on a per capita (or per person) basis to give a relative example of the economic...