GNI

Gross national income (GNI) is an economic metric that measures the total income earned by a country's residents and businesses, including any income earned abroad. It is defined as the sum of a nation's gross domestic product (GDP) plus net primary income from the rest of the world. Equivalently, GNI equals GDP plus primary income received from abroad minus primary income paid to other countries. The key difference between GDP and GNI is that GDP accounts for all production within a country's borders, regardless of who owns the production, while GNI focuses on the income earned by the country's residents whether the activity occurs domestically or abroad.

Components of net primary income include wages, salaries, interest, dividends, profits, and other payments between residents and non-residents. Remittances and earnings from foreign investments are common elements. GNI is often used alongside GDP to provide a fuller picture of the income available to a country’s residents.

GNI is compiled by international organizations such as the World Bank and the International Monetary Fund using national accounts and balance of payments data. It is usually reported in current prices and converted to a common currency, often US dollars, and can be adjusted for purchasing power parity (PPP) for cross-country comparisons. GNI per capita is GNI divided by the mid-year population and is a common indicator of average living standards.

GNI serves as a broad indicator of the income level of a country’s residents and is used for development classification, economic analysis, and eligibility considerations for international programs. Limitations include sensitivity to exchange rate fluctuations, data quality differences among countries, and the fact that GNI does not directly measure inequality, poverty, or well-being.