Gross National Income

Statement

Gross national income (GNI) is the market value of all final goods and services newly produced anywhere in the world with resources belonging to residents of a country in a given period of time (usually a year).

Notes

Where GDP counts by location of production, GNI counts by ownership of the resources used. The two are linked by net factor income from abroad (NFIA): $\text{Nominal GNI} = \text{Nominal GDP} + \text{NFIA}$, where $\text{NFIA} = \text{FIFA} - \text{FIPA}$ — factor income earned abroad by residents, less factor income earned domestically by foreigners and paid out. An economy with large foreign-owned firms operating within its borders (so high GDP) but few residents earning abroad will have a GNI below its GDP, since the foreigners’ income is repatriated rather than retained.