Gross national product is one of the fundamental indicators of the global economy. It is generally accepted that the effectiveness of the financial system of a particular country is determined by the volume of its GDP. However, this opinion is erroneous. GNP is also an important component in the structure of macroeconomics, as it reflects the real picture of the course of affairs. This indicator in 1993 received a new name - gross national income. Nevertheless, today in practice it is customary to use the term GNP.
Indicator analysis
When determining the volume of GNP, it is worth considering a number of important aspects. Firstly, the aggregate of the indicator includes all products manufactured in the territory of a given country, that is, within its economy. Secondly, GNP is the result of only the final product or type of service. The offset includes products of final consumption, which was produced during the current year.
It is worth noting that GNP is a purely monetary indicator. It is measured in foreign currency equivalent based on current market value. In the overall standings of the national product does not include intermediate products that are submitted for resale. It is believed that the amount of such transactions is already included in the price of goods. It turns out that when calculating the indicator, only the additional price for the products, which is created at each intermediate stage of production, is taken into account.
Other goods that do not contribute to an increase in the state treasury are also excluded from GNP. We are talking about non-production transactions. These include trading in supported products and financial transactions.
Types of GNP transactions
To date, the following categories of financial transactions are set off:
1. Government payments. We are talking primarily about transfer payments. For example, pensions, insurance, allowances, etc. The state share of GNP is payments that do not make a big contribution to the sphere of production.
2. Private payments. These are such transfer transactions, which are a redistribution of funds from one person to another. Examples: cash, gifts, etc.
3. Transactions with securities. This category of transactions is characteristic of the stock market. Here, operations are the result of the exchange of securities that are not involved in production. On the other hand, savings owners pay money to entrepreneurs for buying stocks or bonds. In the future, the proceeds will go to purchase other goods or investments.
Transactions that are not included in the offset of GNP include non-production transactions such as any financial transactions, resale of things, private households, shadow business and barter exchange. Supported goods are excluded from the national product due to the fact that the result of the operation is a double account.
Methods for calculating the indicator
As you know, the volume of GDP and GNP in the global economy are inseparable. First of all, national depends on gross domestic product. The ratio is direct, but there are a number of nuances. How to quickly determine GNP? The calculation formula is presented as the sum of the nominal GDP and the static coefficient. The role of an auxiliary indicator is a value that includes the primary income of residents of a country abroad and foreign investors in the territory of this state. In other words, the static coefficient is the balance of the exchange of the country's profits with the rest of the world.
In the formula, GDP can be calculated in several ways. The simplest is the distribution method, then production and final use.Do not forget that in the calculation of GNP it is necessary to include such types of income as property profit, compensation for rent, rents, dividends of shareholders, corporate tax, etc.
If the national product indicator is higher than the final GDP, then the indigenous people of this state earn more abroad than foreigners who come to this country. Otherwise, the reverse dynamics is observed. Equality of ratio is extremely rare in practice.
Distribution method
The calculation of GNP by this method consists in using only primary incomes in the formula that have never participated in the redistribution. Subjects include enterprises, households, and government agencies.
Real GNP can be based on several components of profitability:
1. Salary. Subjects of the category are employees and workers. This component also includes material benefits, social insurance and the percentage of pension funds.
2. Rent. This includes household income from renting premises and land.
3. Profitability. Incomes of owners of cooperatives and farms, as well as corporations. In this case, the profit is divided into dividends and investments.
4. Percentage. It is deducted from the amount of payment for cash capital. Striking examples are interest on deposits or loans.
The totality of all of the above types of factor-related income and costs ultimately form a real GNP. The distribution method does not take into account the flow of profit, which, as a result of the production process, is spent on the recovery of capital goods. Such income is attributed to depreciation.
End use method
With this method of calculating GNP, the formula represents the sum of the costs of all economic entities for the purchase of finished products. In total, the system of the national product includes four components: investment costs, consumption, government goods and actual exports. Each value is taken as the result at the end of the year.
Investment costs represent expenses for goods, equipment, premises, technical and material stocks. In a broad sense, all these products are called capital goods. In turn, investments are clean and gross. The first type is to purchase new equipment, and the second - to reimburse old equipment. 
Consumption expenditures include household spending on any services or goods. State-owned products include electricity, healthcare and education facilities, recreational facilities and other social and utilities services. Most often, the assessment of funds comes at a cost.
Net export represents the cost of products manufactured in a particular country directed to the foreign market. No import indicators matter.
Production method
Analysis of GDP and GNP in this way allows you to identify the level of participation in the economic structure of its individual industries. The production method involves summing the cost of products and services at each stage of formation. The total value will be equal to the price of the product minus its intermediate costs.
In this case, the cost includes the following elements: profit, salary, interest on loans, transport and advertising expenses, and depreciation. 
The resulting value should equal the final cost of the product in the current market.
Indicator Disadvantages
Actual GNP does not take into account a number of important elements of macroeconomics. This applies to non-market production, and the cost of services of the shadow sector.
In addition, it is worth highlighting from the shortcomings of the indicator that it does not reflect the real distribution of state income for the accumulation and consumption of various segments of the population. Also, GNP does not include personal costs (time of work and rest) and extraneous factors (environment, etc.).
That is why, to determine the well-being of the population, it is most often used an internal rather than a national product.
Rating of countries in terms of GNP
At the moment, the Republic of Congo leads the list. Its volume of national product varies within 61.4% of the country's total GDP.
The following three places were staked out by such rich Asian states as Kuwait, Qatar and China. Their share of GNP of the gross domestic indicator is from 54.8 to 50%.
African countries such as Chad, Algeria, Gabon were among the top ten. Surprisingly, TOP-10 closes Azerbaijan with 41% of GDP. Next come Cape Verde, Vietnam, Norway, the UAE and Oman.
Russia is only in the 33rd position of the rating. Its GNP is estimated as 28.3% of GDP, that is, approximately $ 0.5 trillion.
