Here are five differences between gross domestic product (GDP) and gross national product (GNP):

1. Different definitions

GDP refers to the sum of all final products and services produced by all permanent units in a country (or region) in a certain period of time, and is often considered as an indicator to measure the economic situation of the country (or region).

gross national product is the final result of the initial income distribution of all permanent units in a country (or region) within a certain period (usually one year). It is the total value of the final products and services owned by the owners of domestic production factors in a certain period of time.

2. Different accounting methods

Gross domestic product: In China's statistical practice, GDP calculated by production method is divided into four items, and GDP= remuneration of workers+net production tax+depreciation of fixed assets+operating surplus.

GNP = GDP+net factor income from abroad = GDP+production tax and import tax minus production and import subsidies (net from abroad)+employee compensation (net from abroad)+property income (net from abroad)

3. Different emphases

GDP emphasizes the added value created and is the concept of "production".

the gross national product emphasizes the original income obtained.

4. Different ways of economic growth

If a country or region pays more attention to GDP in economic policy, it will pay more attention to the maturity and development of its own industries, regardless of whether domestic enterprises or foreign enterprises support the development of these industries.

if we pay more attention to GNP in economic policy, not only domestic industries should develop, but also domestic enterprises should support the development of domestic industries, not only to increase taxes, but also to make real profits.

5. Used in different international organizations

The International Monetary Fund only focuses on GDP to analyze the economic growth of countries around the world.

The World Bank pays attention to both GDP and GNI(GNP), and pays more attention to GNI(GNP) to some extent, so as to analyze the differences between the rich and the poor in the world.