GNP stands for Gross National Product, which is an economic measure of the total value of all the final products and services produced by a countrys residents, regardless of their location, in a given period of time. It is calculated by adding up personal consumption expenditures, private domestic investment, government expenditure, net exports, and any income earned by residents from overseas investments, and then subtracting income earned by foreign residents.

GNP is related to another important economic measure called Gross Domestic Product (GDP), which measures the total output produced within a countrys borders regardless of who owns the means of production. GNP starts with GDP and adds residents investment income from overseas investments, and subtracts foreign residents investment income earned within a country.

Some key takeaways about GNP include:

• GNP measures the output of a countrys residents regardless of the location of the actual underlying economic activity.
• Income from overseas investments by a countrys residents counts in GNP, and foreign investment within a countrys borders does not.
• GNP considers the manufacturing of goods like equipment, machinery, agricultural products, vehicles, and some services like consulting, education, and healthcare.
• GNP per capita is used for the calculation of GNP on a country-to-country comparison, while it becomes problematic when a citizen holds a dual citizenship.

GNP is considered an important economic indicator by economists, as it helps them find out the economic growth of a country. However, since 1991, the United States has started using GDP instead of GNP as its main way to measure economic output.