Gross National Income (GNI) measures the total income earned by a country’s residents from both domestic and international sources, providing a key indicator for assessing national economic welfare.
- GNI is calculated as Gross Domestic Product (GDP) plus net factor income from abroad, which includes income received by residents from overseas (such as wages and investment returns) minus income paid to non-residents for their contributions within the country.
- Unlike GDP, which focuses solely on domestic production, GNI offers a more complete view of a nation’s economic activity and standard of living by accounting for global income flows.