What does gross national product (GNP) measure?

Gross National Product (GNP) measures the total production by a country's residents, regardless of where that production takes place. This includes the values of all goods and services produced by the nation’s residents in a given period, whether they are located within the country or abroad. By focusing on residents rather than the geographical boundaries of the country, GNP provides a clearer picture of the economic performance related to the citizens and businesses of a nation.

This is distinct from other measures such as Gross Domestic Product (GDP), which only accounts for production within the geographical boundaries of a country, regardless of whether the producers are citizens or foreign entities. GNP includes income that residents earn from investments abroad and excludes income earned by foreign residents within the country, reinforcing its focus on total production by a country's residents. Thus, it encapsulates the economic contributions of the country's people more comprehensively than just residency-based production figures would.