Gross national income
Gross national income measures the income accruing to an economy’s residents, including net primary income from abroad, using national-accounts definitions. It differs from GDP, which concerns domestic production. Gross national product is older terminology for the corresponding national aggregate. Residence in national accounts is an economic concept and should not simply be replaced with citizenship.
Worked example
If GDP is $600 billion and residents’ primary income received from abroad exceeds primary income paid abroad by $15 billion, GNI is $615 billion, assuming those are the relevant net adjustments.
Common mistake
Do not define GNI as the output of every citizen wherever they live, or add all foreign trade receipts to GDP. Net primary income is different from exports minus imports.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |