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Gross National Product (GNP) represents all the finished goods and services produced by the country’s factors of production in monetary value irrespective of their location in a given period of time.

The formula for calculating GNP is:

GNP =  (personal consumption expenditures + private domestic investment + government expenditure + net exports + any income earned by residents from overseas investments) - (income earned within the domestic economy by foreign residents)

The formula for calculating GNP does not include the value of intermediary goods to avoid double counting, as these gets included in the value of final products and services.

GNP is related to an important economic measure called gross domestic product (GDP). GDP takes into account all output produced within a country's borders no matter who owns the means of production.

GNP is also calculated by:

GNP = GDP + Net factor income from abroad

GNP provides valuable information on various economic variables such as manufacturing, savings, investments, employment, production outputs of major companies etc.. Policymakers make use of this information to prepare policy papers that is used by legislators to make laws. Economists use the GNP data to solve national problems relating to inflation and poverty.