Net National Product - NNP

What is the 'Net National Product - NNP'

The net national product (NNP) is the monetary value of finished goods and services produced by a country's citizens, whether overseas or resident, in the time period being measured (i.e., the gross national product, or GNP) minus the amount of GNP required to purchase new goods to maintain existing stock (i.e., depreciation).

Alternatively, net national product (NNP) can be calculated as total payroll compensation + net indirect tax on current production + operating surpluses.

BREAKING DOWN 'Net National Product - NNP'

In other words, NNP is the amount of goods that can be consumed within a nation each year without reducing the amount that can be consumed in following years.

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RELATED FAQS
  1. What is the formula for calculating gross national product (GDP)?

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  3. What does GNP say about the balance of trade?

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  4. What is the functional difference between GDP and GNP?

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