The differences are as follows:
1. The concepts of GDP and GNP are different
GDP refers to all the final results of production activities of all permanent units in a country or region in a certain period, which is equal to the sum of the added value created by all permanent units. It can be seen that GDP emphasizes domestic production and reflects the creation of added value.
GNP refers to the final result of the initial income distribution of all permanent units in a country or region within a certain period, which is equal to the sum of the initial income distribution of all permanent units. Because it is a gross index to measure income, the name of "production" is not true. Therefore, five international organizations, such as the United Nations, renamed it Gross National Income (GNI) in the 1993 SNA revised.
2. The calculation caliber of GDP is different from GNP.
GDP is a concept that reflects the production results. It measures the total economic output of a country or region from the perspective of production. As long as the added value created by the production activities of its permanent units, whether created by domestic-funded enterprises or foreign-invested enterprises, it should be included in its GDP.
GNI is a concept that reflects the total income. It measures the total economic output of a country or region from the perspective of initial income distribution, that is, on the basis of GDP, foreign investment and labor income in the country are deducted, plus investment and labor income obtained from abroad.
3. GDP and GNP have different emphases
GNP emphasizes the original income obtained.
GDP emphasizes the added value of creation and is the concept of "production". Relatively speaking, under the condition of open economy, GDP is more and more superior to GNP in the statistics of a country's total wealth.
Extended information:
The role of GDP and GNI:
When analyzing the economic growth of various countries, we generally pay more attention to GDP; When analyzing the difference between the rich and the poor in different countries, we generally pay more attention to GNI or GNI per capita. For example, the United Nations, the World Bank and the International Monetary Fund generally use GDP or per capita GDP when evaluating the overall economic performance of countries; The Maastricht Treaty (EU Treaty) stipulates that the upper limit of the public debt ratio is 6%, that is, GDP is used as the benchmark for comparison. The United Nations determines a country's regular membership fee according to its GNI and per capita GNI for six consecutive years. The World Bank regards per capita GNI as the standard for dividing high-income, middle-income and low-income economies.
Resources: Baidu Encyclopedia-What's the difference between -GDP and GNP?