THE gross national income, together with the GDP, GNP, per capita income, economic growth rate and income distribution is an indicator used to assess the socioeconomic conditions of a country. It is calculated from the sum of all income for a country during the year: wages, profits, interest, fees, rent, etc.
Although it is used in the assessment of socioeconomic conditions, gross national income does not always reflect the real conditions of the space analyzed, as it is necessary, in addition to knowing the national income, to assess how this income is distributed. Thus, a country that has a high national income, but which is very concentrated in the hands of a few people, will have worse economic and social conditions than a country that has a lower national income, but better distributed.
Brazil, according to the IBGE, has a national income of approximately three trillion dollars. If analyzed individually or compared to other Latin American countries, it can be considered high. However, when we look at the country's economic and social conditions, we see that it still faces several problems, thus demonstrating that the economic growth that the country has achieved in recent decades has not been covered in quality of life for the population. One of the factors that impede the improvement in the Brazilian quality of life is the high concentration of national income. It is estimated¹ that the 2.5 million richest families in Brazil concentrate around 37.4% of all national income.
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Thus, the calculation of national income is an important indicator for the economic situation of a country, but it cannot be used in isolation, because, like any index, it has flaws that can compromise the analysis, evidencing an economic situation that does not match the reality of the analyzed country.
GRADES
¹Estimate by economists Adriano Pitoli, Camila Saito and Ernesto Guedes, as presented in brazilian mail.
By Thamires Olimpia
Graduated in Geography
Would you like to reference this text in a school or academic work? Look:
SILVA, Thamires Olimpia. "What is national income?"; Brazil School. Available in: https://brasilescola.uol.com.br/o-que-e/geografia/o-que-e-renda-nacional.htm. Accessed on June 28, 2021.
