What is GNI?
includes the value of all goods
Gross National Income is and services produced by
the total amount of nationals whether inside the
country or outside
income earned by a
nation's citizens. It is Includes net receipts from
abroad of compensation of
also a tool used to employees, property, income,
and net taxes
identify the growth of a
country in terms of
wealth
FORMULA:
GNI = C + I + G + X + NFFI
How to Calculate Gross National Income
To calculate GNI for a country, add up the following:
Consumption (C). Consumption (or personal consumption expenditure) is the value of
all goods and services acquired and consumed by the country’s households.
Investment (I). This is any domestic capital spending by a country’s citizen-run
businesses.
Government spending (G). This is all consumption and investments made by the
government. Government spending does not include any transfer payments (such as
social security paid to citizens), since they are not actually government spending, but a
transfer of money.
Net exports (X). This is the country’s exports MINUS the country’s imports. In order for
this number to increase NNI, a country needs to export more than it imports.
Net foreign factor income (NFFI). This is income that the country’s citizens earn
abroad MINUS the income that foreign residents earn in the country and send out of
the country.
includes the value of all goods
Gross National Income is and services produced by
the total amount of nationals whether inside the
country or outside
income earned by a
nation's citizens. It is Includes net receipts from
abroad of compensation of
also a tool used to employees, property, income,
and net taxes
identify the growth of a
country in terms of
wealth
FORMULA:
GNI = C + I + G + X + NFFI
How to Calculate Gross National Income
To calculate GNI for a country, add up the following:
Consumption (C). Consumption (or personal consumption expenditure) is the value of
all goods and services acquired and consumed by the country’s households.
Investment (I). This is any domestic capital spending by a country’s citizen-run
businesses.
Government spending (G). This is all consumption and investments made by the
government. Government spending does not include any transfer payments (such as
social security paid to citizens), since they are not actually government spending, but a
transfer of money.
Net exports (X). This is the country’s exports MINUS the country’s imports. In order for
this number to increase NNI, a country needs to export more than it imports.
Net foreign factor income (NFFI). This is income that the country’s citizens earn
abroad MINUS the income that foreign residents earn in the country and send out of
the country.
