O Gross Domestic Product (GDP) is one of the main indicators used to analyze and classify the economic situation of a country, state, municipality or region. This indicator is nothing more than the sum of all goods and services, that is, all the wealth generated in a given period.
O Gross National Product (GNP) refers to the sum of all the wealth produced by a nation/country during a given period, in national territory or not. Companies that have branches abroad are also considered by this indicator.
→ GDP x GNP
The GNP differs from the GDP especially by the Net Income Sent Abroad (RLEE), which is considered in the GNP calculation and excluded from the GDP calculation. The RLEE is the difference between amounts sent abroad and amounts received from abroad from production factors.
It is also worth noting that GDP is not used only as an economic indicator for countries. The Brazilian Institute of Geography and Statistics (IBGE) releases data on the GDP of states and municipalities annually. This indicator can also be used to assess the amount of wealth produced by a region of a country or a set of countries, such as a
economic block.The calculation of the GNP is done as follows:
Developed countries tend to have GNP greater than GDP. In the Brazilian case, the GNP is smaller than the GDP, since the RLEE is negative, that is, more resources are sent abroad than received.
Another economic indicator used, especially to assess the quality of life of a population, is the GDP per capita, which is the sum of the wealth of a country or region divided by the number of inhabitants. There are countries that have a high Gross Domestic Product, however, because they are very populous, they have a low GDP per capita, compared to other countries.
By Amarolina Ribeiro
Graduated in Geography
Source: Brazil School - https://brasilescola.uol.com.br/economia/qual-diferenca-entre-pib-pnb.htm
