Net National Income (NNI) is an important economic indicator in macroeconomics, measuring the total income earned by a nation’s residents after deducting the depreciation of capital assets to reflect sustainable income levels.

• NNI is computed by subtracting the consumption of fixed capital (depreciation) from Gross National Income (GNI).
• This adjustment provides a more accurate assessment of a country’s long-term income potential, accounting for the ‘wear and tear’ on its productive assets and ensuring resources are available for reinvestment.