Gross National Income (GNI)
Definition
Gross National Income, or GNI, is the total amount of money earned by a nation's people and businesses. It includes the value of all goods and services produced within a country, plus income earned by its citizens abroad, minus income earned within the domestic economy by foreigners.
Analogy
Think of GNI as a big piggy bank that represents a country's economy. Every time someone in that country earns money - whether they're at home or abroad - it goes into the piggy bank. But if someone from another country earns money while in this country, we take that out of our piggy bank.
Related terms
Gross Domestic Product (GDP): This is the total value of all goods and services produced within a country's borders in a specific time period, regardless of who produces it.
Net National Income (NNI): This is GNI adjusted for depreciation - how much value items lose over time due to wear and tear.
Purchasing Power Parity (PPP): This is an economic theory that compares different countries' currencies through a "basket of goods" approach.
"Gross National Income (GNI)" appears in:
Study guides (1)
Practice Questions (4)
What does the Gross National Income (GNI) account for that the Gross Domestic Product (GDP) does not?
Why do geographers use Gross National Income (GNI) as a measure of development?
Which of the following is a significant limitation of using Gross National Income (GNI) per capita as an indicator of development?
Which two countries best illustrate the difference in Gross National Income (GNI) per capita and its impact on human development?
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