What is the difference between GDP and GNP?

Gross Domestic Product (GDP) and Gross National Product (GNP) are both measures of economic activity, but they differ in their scope and focus.

GDP measures the total value of all goods and services produced within a country's borders during a specific time period, regardless of whether the production is done by domestic or foreign entities. It includes the value of goods and services produced by both residents and non-residents within the country.

GNP, on the other hand, measures the total value of all goods and services produced by a country's residents, regardless of where they are located. It includes the value of goods and services produced domestically as well as abroad by a country's residents.

The main difference between GDP and GNP is that GDP focuses on production within a country's borders, while GNP focuses on production by a country's residents, regardless of location. This means that GNP takes into account the income earned by a country's residents from their economic activities abroad, while GDP does not.

In summary, GDP measures the total value of production within a country's borders, while GNP measures the total value of production by a country's residents, regardless of location.