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Gross National Product

Gross National Income (GNI) is a measure of wealth that calculates income instead of output, defined as GNI = GDP + Net Primary Income + Net Secondary Income. Certain countries, particularly small island nations and those with high remittances or foreign aid, may have a GNI higher than their GDP. The document also lists countries with the highest real GNI per capita, highlighting significant figures for nations like Liechtenstein and Singapore.

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25 views5 pages

Gross National Product

Gross National Income (GNI) is a measure of wealth that calculates income instead of output, defined as GNI = GDP + Net Primary Income + Net Secondary Income. Certain countries, particularly small island nations and those with high remittances or foreign aid, may have a GNI higher than their GDP. The document also lists countries with the highest real GNI per capita, highlighting significant figures for nations like Liechtenstein and Singapore.

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Gross National Product

WHAT IS GROSS NATIONAL INCOME (GNI?)

• Gross national income (GNI) is an alternative to gross domestic product


(GDP) as a measure of wealth. It calculates income instead of output.
• GNI = GDP + Net Primary Income + Net Secondary Income
• Net Primary Income: This includes wages, salaries, and other income
earned by a country's residents working abroad, as well as earnings from
foreign investments, such as dividends and interest.
• Net Secondary Income: This refers to transfers of money between
countries, such as remittances from foreign workers to their families in
their home countries or international aid.
COUNTRIES GNI HIGHER THAN THEIR GDP
• Small Island Nations: Some small island nations with significant financial services
sectors may have a GNI higher than GDP due to the large inflow of foreign income
earned through financial services, investments, or offshore banking.
• Countries with High Remittances: Countries that receive substantial remittances
from their citizens working abroad may also experience a situation where GNI
surpasses GDP.
• Countries with Foreign Aid: Nations receiving substantial foreign aid might have
GNI exceeding GDP temporarily.
• Countries with Expatriate Communities: Countries with large expatriate
communities sending money back to their home country may also experience a
temporary situation where GNI is higher than GDP.
NET INFLOWS OF REMITTANCES ADDS TO GNI
Value of remittances received in Latin
America 2021, by country, US $ million
Nicaragua 2147
Venezuela 2916
Jamaica 3497
Peru 3558
Haiti 3656
Ecuador 4362
Honduras 7376
El Salvador 7517
Colombia 8597 Agricultural seasonal immigrant farm workers harvest
Dominican Republic 10402 and package in the fields of Salinas Valley of central
Guatemala 15296 California. In 2021, the number of Mexican migrants in
the United States increased by 400,000. Currently, they
Mexico 51471
are concentrated in Construction (19%) and Hospitality
0 10000 20000 30000 40000 50000 60000 and Leisure (14%) sectors. (Source: BBVA Research)
COUNTRIES WITH HIGHEST REAL GNI PER CAPITA
GNI per capita
Korea (Republic of)
United Kingdom ❑ Liechtenstein: $146,830
France
Saudi Arabia
Canada
Australia
❑ Singapore: $90,919
Finland
Andorra
Belgium ❑ Qatar: $87,134
San Marino
Kuwait
Austria ❑ Luxembourg: $84,649
Sweden
Germany
Iceland
Netherlands
❑ Ireland: $76,169
Denmark
United Arab Emirates
Hong Kong, China (SAR) ❑ Switzerland: $66,933
Norway

❑ United States:
United States
Switzerland
Ireland
$64,765
Luxembourg
Qatar
Singapore
❑ Norway: $64,660
Liechtenstein

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000


Real GNI at constant 2017 prices

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