GDP / GNP / NNP

GDP (Gross Domestic Product)

GNP (Gross National Product)

NNP (Net National Product)  

When we (GDP / GNP / NNP) are asked these questions in Viva exam, many of us say:

GDP ( Gross Domestic Product), GNP ( Gross National Product), NNP ( Net National Product )  

But as an economics student, such an answer is not understandable.

The subject was discussed briefly

• GDP -  refers to the total monetary value of a product produced within a country over a period of time i.e. one year.  Both domestic and foreign investments will be accounted for. 

100 crore domestic investment, 20 crore foreign investment.

In that case the GDP will be 120 crores.

• GNP -  refers to the total monetary value of a product produced by the citizens / people of a country in a year . Indigenous people's investment will be calculated. The point is whether the place of investment is in the country or outside the country. 

Mr. Rahman is a citizen of Bangladesh. Mr. Rahman has invested TK 5 crore in Bangladesh and TK 2 crore outside the country. In that case 7 crore will be added to GNP.

• NNP- GDP dropped from the depreciation . Therefore NNP is calculated by difference between GDP and depreciation.

For example, The value of GDP is 100 crore. And Depreciation is 60 Crore. Therefore NNP will be: (100-60)= 40 Crore.