What's the difference between GNP and GDP?

Question

can anyone explain the significance of each too? :P

Answer 1

  GNP minus GDP = NET FOREIGN REMMTANCES FROM ABROAD.

GNP --- gross national product ,

GDP --- gross doestic product.

Net foreign remmitances = total income of goods and services from abroad minus total income of goods and services to abroad.

GNP --- Total Income of goods and services produced in the national territory by its nationals plus the net income from goods and services from its nationals from abroad.

GDP--- Total income of goods and services produced in the national territory by its nationals  only.

If GNP is less than its GDP than the country is having a

negative trade balance. More income is going out of the country than coming in. Bad for the country's economy.

Answer 2

GNP = Total value of all goods and services produced within a nation during a specified period, plus income earned by citizens abroad, minus income earned by foreign citizens in that country.

GDP = Total value of all goods and services produced within a nation during a specified period.  It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services.

The difference?  GDP is the output of a region, whereas GNP is the output of all the citizens (nationals) of that region.

GDP and GNP are important tools that are used to estimate the welfare of a country's economy.  If GNP and GDP go up, that generally means the economy is doing well.  If they go down, it generally means the economy is not doing well.  For example, a "recession" is defined as two consecutive periods (usually three-month periods, or "quarters") where a country's GDP declines.