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AS Macro Key Term: Gross National Income (GNI)
7th April 2011
Gross National Income (GNI) is broadly the same as GDP except that it adds what a country earns from overseas investments and subtracts what foreigners earn in a country and send back home. GNI is affected for example by profits from businesses owned overseas and also remittances sent home by migrant workers. Our chart below tracks GNI per capita for the UK economy, expressed in PPP terms (purchasing power parity).
Data from Timetric.
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GNI per capita, PPP (current international $), United Kingdom from Timetric
Material well-being can be measured in many years - broadly it tries to capture the amount of wealth or comfort that a person, group, or country has. The standard measure of average living standards is GNI (gross national income) per capita measured in a common currency and adjusted for differences in the cost of living between countries i.e. GNI per capita (PPP) – purchasing power parity adjusted
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.