Gross National Income (GNI) and Purchasing Power Parity (PPP)
Gross National Income (GNI)
• Formerly k/a Gross National Product (GNP)
– Gross income generated within the country PLUS
– Net income received from abroad
• It is expressed as ‘at current prices’ (at prices prevailing during the period to which the figure refers)
– The figures are influenced by inflation but are more useful for international comparison for the same period
• or
• ‘At constant prices’ (at prices prevailing during a fixed base period in the past, irrespective of the period to which the figures refer )