Nominal Gross National Income (GNI)
Measuring Economic Activity and Illustrating Its Variations
AO2·AO4
Syllabus requirement
GNI measures total income earned by a country’s residents, including income from abroad.
Assessment objectives
AO2 Application and AnalysisAO4 Use of Appropriate Skills
Summary
This topic explains nominal gross national income (GNI) as an alternative measure of national output to nominal GDP. Nominal GNI equals a country’s GDP plus net factor income from abroad, so it records income earned by a country’s factors of production regardless of where those factors are located. It matters because repatriated profits or income earned by nationals abroad make GNI differ from GDP, affecting comparisons of national income over time or between countries.