How to decide the wealth of the contry. Is it through GDP OR GNP?

Question

how to decide the wealth of the contry. Is it through GDP OR GNP?

Answer 1

Neither one measures the wealth of a country. GDP measures the market value of all goods and services produced in a year within the country's borders, while GNP (now obsolete) measures the market value of all goods and services produced in a year by the country's nationals. When GDP is corrected for inflation, it is called real GDP. If it is divided by population, it is called per capita GDP or GDP per person. Even as a measure of economic well-being, GDP has many flaws which are listed in every intro to econ textbook. You can say that countries with a high real GDP per capita are better off economically than those with a low real GDP per capita, but you still don't know if the people are happier in any sense, since GDP does not measure environmental degradation properly, nor does it say anything about how the output is distributed. One final reminder: a $15 switchblade knife is exactly equal to a $15 Beethoven CD in the GDP accounts.

Answer 2

Both are devices to measure wealth (well, not wealth, but output, specifically). GDP is usually a more quoted figure.

"Doc"'s post above is a pretty good description of them actually.