Gross national product measures the total value of goods and services produced by a country's residents, wherever they are in the world. It differs from GDP, which counts production within a country's borders regardless of who owns the factors.

The distinction matters for countries with large expatriate workforces or overseas investments. The Philippines, for example, has a GNP higher than its GDP because of remittances and work abroad. A country hosting many foreign factories may have GDP higher than GNP because profits flow out.

Most countries now report GDP as their primary measure. GNP is still used in some contexts, especially when analyzing income flows across borders. The two numbers tell different stories about who benefits from production. Both have limitations as measures of welfare.

GDP vs. GNP

• GDP: production inside the borders
• GNP: production by citizens, anywhere
• GNP = GDP + net income from abroad
• Remittances affect GNP
• Multinational profits affect the gap