1. Hello everyone! Today I will tell you about «Nation’s economy. GNP». This is plan of the presentation. 2. GNP stands for Gross National Product. It is an economic indicator that measures the total value of all goods and services produced by the residents of a country, including both domestic and international production. GNP is a useful measure for assessing the economic health and performance of a country. It provides insights into the level of economic activity and productivity. GNP can be compared over time to analyze economic growth. 3. The main difference between Gross National Product (GNP) and Gross Domestic Product (GDP) lies in how they measure economic activity and who is included in the calculation. Here are the key distinctions: 1) Scope of Measurement. GNP measures the total economic output produced by the citizens of a country, regardless of their location. It includes the income earned by the country's residents both domestically and abroad. GDP, on the other hand, measures the total economic output produced within country's borders, regardless of the nationality of the producers. It includes the income generated by both residents and non-residents within the country. 2) Components Considered. GNP includes all the components of GDP (such as consumption, investment, government spending, and net exports) but adds an additional component called net income from abroad. We will now talk about this. 4. There are components of GNP: Personal Consumption Expenditures (C): This component represents the total amount spent by individuals on goods and services within a country. Government Spending (G): It includes all government expenditures on goods and services. Investments (I): Investments in GNP refer to spending on capital goods, which are used to produce goods and services in the future. Net Exports (X - M): Net exports represent the difference between a country's exports (X) and imports (M). Net Income: This component reflects the income earned by the country's residents from their investments, employment, or business activities abroad, minus the income earned by foreign residents within the country. To calculate GNP, all these components have to be added up. 5. This is the top of 10 countries with the highest GNP (in 2022). As we can see, the USA tops the ranking and Canada finishes it. 6. Economic Performance: GNP helps measure a country's economic performance, providing insights into growth and productivity, International Comparison: GNP allows for comparisons of economic performance between countries. Policy Formulation: GNP data helps policymakers design effective strategies and monitor progress towards economic goals. Economic Forecasting: GNP data is utilized in economic forecasting models, enabling predictions about future economic trends, inflation, and potential risks. This is the end of my speech.
