[This is part of the series: The Complete Guide To Economics 101.]
What is the difference between GDP and GNP?
The difference between Gross Dometic Product (GDP) and Gross National Product (GNP) is that the former concerns itself with where goods and services are produced, the latter with whom they are produced by.
See, GDP looks at what is produced within a nation’s borders. This includes citizens of that country, immigrants, people on business trips, etc. If it is produced within the given time frame, within the nation being counted, then it is counted towards GDP.
Conversely, GNP does not care where a good or service is produced, only who produces it. For instance, calculating the GNP of Germany would look at the production of German citizens, even if they lived in Singapore or Saudi Arabia.