gross national product

noun

Definition of gross national product 

: the total value of the goods and services produced by the residents of a nation during a specified period (such as a year)

Examples of gross national product in a Sentence

Recent Examples on the Web

Indeed, the Mexican Institute for Competitiveness estimates corruption eats away 2 to 10 percent of gross national product and reduces foreign investment by 5 percent a year. The Christian Science Monitor, "An impending revolution in Mexico," 3 July 2018 In addition, military spending as a percentage of gross national product is also in a decline. The Christian Science Monitor, "Why North Korea may be primed for a deal," 6 June 2018 The new plan projects that Maria will spur increased inflation and nearly triple a contraction in gross national product this fiscal year, as well as drive some 600,000 more people from the island in the next five years. NBC News, "Puerto Rico governor projects no payment on island’s debt until 2022," 25 Jan. 2018 The economy has been in recession for 12 years; gross national product has fallen by 15% in that time. The Economist, "America has let down its Puerto Rican citizens," 12 Apr. 2018 With the economy heavily dependent on chaebol — Samsung alone generates revenues equivalent to one-fifth of South Korea’s gross national product — some South Koreans are wary of disrupting them too much. Choe Sang-hun, New York Times, "A South Korean President Is Jailed for Graft, but Few Expect Major Change," 7 Apr. 2018 The new fiscal plan comes as island officials estimate its gross national product will contract deeply in the year ending in June, officials told reporters today in San Juan. Bloomberg.com, "Puerto Rico Governor Says Storm Deeply Cut Ability to Pay Debts," 25 Jan. 2018 Ministers believe the new airport will support 225,000 jobs and contribute about $19.5 billion to the economy — equivalent to 5 percent of the country’s gross national product. Alastair Jamieson, NBC News, "Erdogan flexes political muscle with new $11B airport in Istanbul," 27 Jan. 2018 This rising annual amount brought their total overseas ante to $64.8 billion, more than the gross national product of many a nation, and eight times the amount foreign businessmen have invested in the U.S. in the 191 years of the Republic. Lily Rothman, Time, "50 Years Ago This Week: 1967 in Review," 25 Dec. 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'gross national product.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of gross national product

1923, in the meaning defined above

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grossen

Grossflöte

Grossglockner

gross national product

grosso modo

gross out

gross-out

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The first known use of gross national product was in 1923

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More Definitions for gross national product

gross national product

noun

Financial Definition of gross national product

What It Is

Gross national product (GNP) is a broad measure of a nation's total economic activity. GNP is the value of all finished goods and services produced in a country in one year by its nationals.

How It Works

GNP includes income earned by citizens and companies abroad, but does not include income earned by foreigners within the country.

The figures used to assess GNP include the manufacturing of tangible goods (cars, furniture and agricultural products) and the provision of services (education, healthcare, and business services). GNP does not include the services used to produce manufactured goods because their value is included in the price of the finished product.  However, GNP does include depreciation and indirect business taxes like sales tax.

The formula for GNP is:

Consumption + Government Expenditures + Investments + Exports + Foreign Production by U.S. Companies – Domestic Production by Foreign Companies = Gross National Product

GNP can be adjusted to make valid comparisons year-to-year or among countries. For year-to-year comparisons, GNP needs to be adjusted for inflation.  For country-to-country comparisons, GNP needs to be stated on a per capita basis (i.e. GNP divided by the population of the country).

The difference between GNP and gross domestic product (GDP) is that GNP includes the value of products made by a country's citizens and companies abroad, while GDP only accounts for products made within a country's borders. However, GNP excludes the value of products made by foreign companies within the reporting country.

Why It Matters

Due to the increasingly global nature of national economies and the interdependence of labor forces, supply chains and sales channels, the U.S. Bureau of Economic Analysis uses GDP instead of GNP as its measure of output for the United States.

GNP is still an interesting economic indicator. For example, the larger the difference between a country's GNP and GDP, the more a country is involved in international trade, finance and production.

Source: Investing Answers

gross national product

noun

English Language Learners Definition of gross national product

: the total value of the goods and services produced by the people of a nation during a year

gross national product

noun

Legal Definition of gross national product 

: the total value of the goods and services produced by the residents of a nation during a specified period (as a year)

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