Gross national. Gross National Product (GNP)

GDP- this is the total volume of all products in its value terms produced on the territory of the state by economic entities, regardless of their nationality. The territorial attribute is important for assessing the prospects of an economy and calculating the level of investment in it. The volume of produced material goods includes both goods and services – their value at the time of consumption.

GNP- this is the total volume of all material goods produced by economic entities of the state, regardless of where they are located. In other words, the gross national product of Russia will consist of the sum of the value of all products produced by residents of the country: both in the territory of the state and abroad.

Both concepts are interrelated, but not interchangeable. Thus, GDP is the value of the products of national enterprises plus the value of the products of foreign companies located in the country. GNP is, again, the material expression of the products of resident firms and domestic enterprises located abroad. Thus, to calculate GNP and GDP, you need to know 3 numbers that affect the final result.

For example, in Russia, GDP is traditionally higher than GNP, which means that foreign firms earn more within the country than Russian firms outside its borders. This state of affairs certainly leads to the fact that foreign countries are actively using the country’s economic opportunities, pumping resources out of it. Politicians and economists need to strive to ensure that the national product in absolute terms is higher than the domestic product.

TheDifference.ru determined that the difference between GNP and GDP is as follows:

1. Territory. GDP is the value of goods and services produced in a country. GNP is the cost of all material goods produced by state economic entities, regardless of their actual location.
2. Nationality of enterprises. To calculate GNP, only those companies that formally belong to the state (Russia) are taken into account. To find out the value of GDP, you only need to know the location of producers (in Russia).
3. Calculation methods. To find out the value of GDP, you need to find out the absolute value of products of domestic enterprises and foreign firms in the territory of the state (by geographic location). To find out GNP, you only need the total value of all goods and services produced by companies representing one country.

Nominal GNP is GNP measured at current prices. Its dynamics can be caused by both changes in production volume and the general price level.

Real GNP- is GNP measured in constant prices (prices of the base period). Unlike nominal GDP, its measurement is not affected by market conditions.

To identify real changes in the volume of national production taking into account inflation or deflation, the GNP deflator is used, which is the ratio of nominal GNP to real. The GNP deflator is the most general indicator, taken into account to measure the level of inflation in the country.

The simplest method of inflation and deflation of the domestic national product is to divide nominal GNP by the price index (GNP deflator).

Real GNP = Nominal GNP / price index for a given year

System of National Accounts is a system of interrelated statistical indicators presented in the form of tables and accounts that characterize the results of the country’s economic activity.

The system of national accounts plays special role in economics:

• It allows you to measure the volume of production at a specific point in time and reveal the reasons for this level of production.
• By comparing national income indicators over a certain period of time, one can trace the trend that determines the nature of economic development: growth, decline or stagnation.
• SNA allows you to formulate and implement public policy

The system of national accounts is based on the balance sheet method of an interconnected comprehensive study of economic processes and the results of their activities. Using the system of national accounts, relationships between economic processes and phenomena are identified.

To obtain a comprehensive assessment of the state of the national economy and assess the performance of individual sectors of the economy, the system of national accounts contrasts each stage of reproduction with a corresponding account or group of accounts that characterize the intensity of movement of the value of goods and services through all stages of the reproduction cycle.

For the economy as a whole, provision is made for the compilation of all accounts that form consolidated accounts. Accounts by sector and region are also being developed.

Main indicators of the system of national accounts:

• Gross domestic product
• Gross National Income
• Gross national disposable income
• Final consumption
• Gross accumulation
• National savings
• Net lending
• Net borrowing
• National wealth
• Foreign trade balance

39) National wealth: content and structure

National wealth- this is the general result of the constantly repeating process of social production throughout the history of the development of the national economy.

According to the concept of the balance of the national economy, national wealth- the totality of material goods that society has on a certain date and which were created by the labor of people over the entire previous period of its development.

In the system of national accounts, national wealth is defined as the sum of the net equity capital of all economic entities, i.e. it includes, in addition to material resources, financial assets, non-productive tangible assets (copyrights, licenses, etc.), but financial liabilities are deducted.

National wealth in the broad sense of the word represents everything that, one way or another, a nation possesses. In this sense, national wealth includes not only material wealth, but also all natural resources, climate, works of art and much more. However, all this is very difficult to calculate due to a number of objective reasons. Therefore, in the practice of economic analysis, the indicator of national wealth in the narrow sense of the word is used.

National wealth in the narrow sense of the word includes everything that is in one way or another mediated by human labor and can be reproduced. In other words, the national wealth of a country is the totality of material and cultural wealth accumulated by a given country throughout its history, to a given point in time. This is the result of the work of many generations of people.

Thus, national wealth is directly related to the production of the social product and its reproduction. National wealth grows and increases, first of all, due to the social product, i.e. the excess of the produced social product over current consumption in a given year. Consequently, the source of national wealth is the social product, which is reproduced on an expanded basis. But here

there is also feedback. The growth of the social product itself, its pace, and the absolute size of the increase depend on the volume of national wealth and its structure. The greater the volume of national wealth and the more efficient its structure, the faster the social product grows.

Structure of national wealth consists of the following basic elements.

First and the most important element of national wealth must be considered production assets. They have the largest share in the national wealth. This means, first of all, fixed production assets, since their technical level mainly determines the possibilities for growth of the social product.

In addition to the main production assets, the national wealth includes working production assets. In working production assets we're talking about about objects of labor. Working production assets make up approximately 25% of fixed production assets.

In addition to fixed and circulating production assets, national wealth includes material stocks and reserves. This includes finished products in the sphere of circulation, inventories at enterprises and in trading network, state material reserves and insurance funds.

From a functional point of view, material reserves and stocks play the role of an economic stabilizer when unforeseen circumstances. They determine the stability and continuity of production during market and natural disasters. But the question of the size of insurance reserves and reserves is especially important. The practice of leading industrial countries indicates that they should be large enough and account for at least 25% of production potential.

An important element national wealth are non-productive funds, which include state housing stock and social and cultural institutions. This division is somewhat arbitrary due to the fact that housing is included here. By its nature, the latter should belong to the category of household property, which in the statistics of all countries is highlighted as a separate line in the structure of national wealth. In addition to housing, household property includes consumer durables (TVs, refrigerators, furniture, etc.).

And finally, in the structure of national wealth there are natural resources. At the same time, we are not talking about all natural resources, but only about those that are involved in economic turnover or have been explored and may be involved in it in the near future.

The classical school approach to national wealth currently requires additions. The fact is that the mercantilists, physiocrats and the classical school based their conclusions about national wealth not on abstract conclusions, but based on the real needs of life. These needs were dictated by the period commonly called industrial. Currently human civilization enters the next stage of its development, which can be conventionally called a post-industrial society. Naturally, this requires a new approach to assessing national wealth, because post-industrial society characterize at least two fundamentally important points:

1) high informatization of society

2) qualitative growth of his well-being.

On the formal side, information is information that has elements of novelty for its recipient and requires a decision on his part. Information is the raw material for the decision-making process. Unlike natural raw materials, information comes in an unlimited variety of forms from an unlimited variety of sources. Its economic value is also varied. For some it is worth millions, for others - nothing. It is an instrument of control in the economy, in politics, and in an individual company. But these raw materials need to be collected, mined and processed. It needs to be enriched through processing and value must be given to it. It is then released into the market, distributed, and becomes the basis for decision making. Essentially, information is the basis of management, and only with the help of information can the full potential of a modern economy be realized.

It is now completely obvious that a society that has not embarked on the path of informatization, development and implementation of modern information technologies and radical transformation on its basis of the entire structure of national wealth is doomed to degradation. Business without information is simply impossible. Therefore, information is the fundamental basis of production, trade and technological activities that ensure the prosperity and development of any modern society.

That humanity must transition, or at least begin to transition, to information society, was realized back in the middle of our century. Social, and especially economic, development has brought information, or rather its production, storage and distribution, to one of the central places in the system of production and services.

Moreover, after the advent of modern information technology based on computers, it became clear that economic, including business, information, as well as scientific and technical information, is becoming not only a decisive factor in social and economic development, but also one of the main elements of national wealth .

Speaking about the structure of national wealth, it is necessary, first of all, to pay attention to the following trend in the development of the economies of industrialized countries: a sharp reduction (and even death) of such traditional industries as textiles, leather, mechanical engineering, and the transfer of these labor-intensive industries to developing countries, where there is a surplus of cheap unskilled labor.

This is on the one hand. On the other hand, there is an intensive development and distribution of high-tech information products. And the share of production of these goods in industrial developed countries constantly growing.

World production information technologies, which amounted to $390 billion in 1986, increased to $1,200 billion in 1995, which is more than 15% of the national wealth produced in industrialized countries.

The increase in national wealth is the result of the growth of social production and the material basis for its further development, increasing the well-being of the people.

40) Unemployment- a socio-economic phenomenon when part of the economically active population does not find work and becomes “superfluous”. According to the definition of the International Labor Organization (ILO) - International Labor Organization (ILO), an unemployed person is anyone who is currently unemployed, is looking for work and is ready to start work, i.e. only the person who is officially registered at the labor exchange. The number of unemployed in each specific period depends on the cycle and rate of economic growth, labor productivity, the degree of compliance of the professional and qualification structure of the labor force with the existing demand for it, and the specific demographic situation. The following indicators are used to assess unemployment:

Occupancy rate- the share of the amateur adult population employed in social production in the total population of the country.

Norm (level) of unemployment- percentage of unemployed in the total labor force.

Natural unemployment- percentage (share) of the total number of unemployed in the labor force during a period of economic stability.

The unemployment rate is constantly changing under the influence of social production - the cyclical nature of economic downturns and production growth; technical progress, requiring advanced training and changes in the professions of hired personnel. With a decline in production, unemployment rises, and with expansion and growth, it falls.

The relationship between the dynamics of unemployment and the dynamics of GNP is called Okun's law: an increase in real GNP by about 2% results in a reduction in the unemployment rate by about 1% and, conversely, a reduction in real GNP by about 2% increases the unemployment rate by about 1%. Thus, unemployment is considered the natural state of the labor market. However, it may fluctuate up or down from the natural norm.

The following are distinguished: types of unemployment:

Unemployment is forced And voluntary. The first occurs when a worker is able and willing to work at a given wage level, but cannot find a job. The second is associated with people’s reluctance to work, for example, in conditions of lower wages. Voluntary unemployment increases during an economic boom and decreases during a recession; its scale and duration vary among people of different professions, skill levels, as well as among different socio-demographic groups of the population.

Registered unemployment- unemployed population, job seeker and officially registered.

Unemployment is marginal- unemployment of vulnerable segments of the population (youth, women, disabled people) and the lower social classes.

Unemployment is unsustainable- caused by temporary reasons (for example, when employees voluntarily change jobs or quit in seasonal industries)

Unemployment is seasonal- depends on fluctuations in the level of economic activity during the year, characteristic of certain sectors of the economy

Unemployment is structural- is caused by changes in the structure of labor demand, when a structural mismatch is formed between the qualifications of the unemployed and the demand for available jobs

Structural unemployment is caused by large-scale restructuring of the economy, changes in the structure of demand for consumer goods and production technology, and the elimination of obsolete industries and professions;

Technological unemployment- unemployment associated with mechanization and automation of production, as a result of which part of the labor force becomes either redundant or needs more high level qualifications.

Constantly maintaining a certain level of employment of the population - complex problem for any country, including those with centuries-old market traditions. It is believed that in the field of employment the market cannot automatically influence the process of self-regulation. Therefore, in all market-oriented countries, a policy of employment regulation is pursued based on the use of permanent, flexible in forms and means of measures to influence the employment sector. Ensuring fuller and more efficient employment of the population is one of the most important tasks of any democratic society.
Public policy in the field of employment must address two main issues:
firstly, satisfying the labor force needs of functioning investing capital. Vigorously and profitably functioning capital is the best evidence of the efficient use of labor;
secondly, providing jobs for the working population as a condition for the normal existence of people. Caring for the welfare of the population is a traditional function of the state.
Policy Russian state in the field of employment is carried out in the following areas:

Yandex.Direct

• ensuring equal employment opportunities for all citizens of the country, regardless of gender, nationality, age, social status and religion;
• compliance with the voluntary nature of labor and the free will of citizens when choosing the type of employment;
• ensuring social protection in the field of employment;
• supporting the independence of regions in carrying out centralized state activities in solving employment problems;
• support for labor and entrepreneurial initiatives of citizens carried out within the framework of the rule of law;
• coordination of activities in the field of employment with other areas of activity of government bodies - economic and political, including social Security, regulation and distribution of income;
• encouraging employers to create new jobs;
• providing employment for small peoples taking into account historically established types of employment;
• the international cooperation in solving employment problems.

State employment policy in the country is aimed not only at regulating general processes in the labor sphere, but also at implementing them within the framework of measures developed to regulate local (regional) labor markets. Similar regional trends in the functioning of the labor market determine the effect of a unified approach to solving employment problems, especially in the future.

41) Inflation- this is the overflow of monetary circulation channels with excess money supply manifested in rising commodity prices.

In reality, as an economic phenomenon, inflation arose in the 20th century, although periods of noticeable price increases occurred earlier, for example, during periods of war. The term “inflation” itself arose in connection with the massive transition of national monetary systems to the circulation of irredeemable paper money. Initially, the economic meaning of inflation included the phenomenon redundancy of paper money and in connection with this their impairment. The depreciation of money leads to an increase in commodity prices. This is where inflation manifests itself (this word is translated from Latin as “swelling”).

IN modern economy inflation arises as a consequence of a whole complex of reasons (factors), which confirms that inflation is not a purely monetary phenomenon, but also an economic and socio-political phenomenon. Inflation also depends on social psychology and public sentiment. In this regard, the correct term "inflationary expectations": If society expects inflation, it will inevitably occur. In CC c. inflation has become a permanent element of the market economy. This was facilitated by a number of global factors: the rapid growth of commodity production, the complication of its structure; price and social transfer systems have become universal; Pricing practices have changed under the influence of monopolistic enterprises, and the scope of price competition has sharply decreased. An increase in production efficiency is manifested, as a rule, not in a reduction in prices, but in an increase in the amount of profit and income of production participants.

Price dynamics in the direction of their increase is a prerequisite, and often inflation itself.

Growth in government spending and as a consequence, state budget deficit- also a cause of inflation.

Decisive inflation characteristic- its size. Historical practice shows that the higher the inflation, the worse it is for society. Creeping (“normal”) inflation is characterized by price increases of 3-5% per year; galloping - by 30-100% per year; hyperinflation - by thousands and tens of thousands of percent per year.

The main macroeconomic indicator and statistics of countries, as well as international organizations, such as the UN, OECD, IMF, IBRD, is ⚡ GDP ⚡. It expresses the result of the functioning of the economy over a certain period of development, characterizes the finished products and services provided. Unlike the SOP GDP indicator previously used in our statistics, it does not include the cost of consumed items of labor and, therefore, excludes re-counting. On the other hand, GDP, unlike SOP, in addition to the results of material production, includes the cost of services produced.

Thus, GDP represents gross value all goods and services created in the territory of this state over a certain period minus intermediate consumption. In other words, GDP- this is the sum of added value of all divisions of the national economy. It measures the results of the activities of business entities in the economic territory of a given state, but is not intended to assess production outside the country. GDP characterizes the value created by both residents and non-residents of a given state but does not take into account the value generated by residents outside the country.

To eliminate double counting, when calculating the value of a national product, care should be taken to include only the added value created by individual production. Value added is understood as the market price of the volume of products produced minus the cost of consumed raw materials and materials purchased from suppliers. In addition, GDP also excludes unproductive transactions, which are divided into financial transactions (they include three components: firstly, government transfer payments; secondly, private transfer payments; thirdly, transactions with securities) and sales of used goods.

In the national statistics of some countries, the main macroeconomic indicator can be considered GNP (used in the American and Japanese systems). In quantitative terms, the difference between GNP and GDP is small and, as a rule, amounts to no more than 1%. Unlike GDP, GNP characterizes the value of final products created by residents in the territory of a given state and abroad, but does not include the activities of non-residents in the economic territory of this country. In short, the definition of GDP uses the territorial principle according to which goods and services are created internal factors of a given state, regardless of who actually possesses them. The calculation of GNP is based on the national principle, when the cost of products produced by residents is taken into account, regardless of their location. The difference between GNP and GDP is called net factor income from abroad. GNP is equal to GDP plus payments from abroad by residents producing products or providing services and located outside the country, minus payments by foreign residents for the services of factors of production owned by them located within the country.

GNP and GDP are calculated at current prices for comparison with other indicators and at comparable prices to study the dynamics of the physical volume of production.

Nominal GDP(GNP) is an indicator in current prices, i.e. existing at the time of calculation.

Real GDP is GDP at constant prices, i.e. adjusted for inflation.

The ratio of the nominal indicator to the real indicator shows how much GDP has increased solely due to rising prices, and therefore characterizes the change in the general price index. Categories also apply "potential GDP" "GDP lag". Potential GDP characterizes the volume of production that can be achieved with the available factors of production: the gap between this indicator and real GDP is the GDP lag.

Methods for calculating GDP

GDP can be calculated in three ways:

• production
• distributive
• end use

The basis for calculating GDP production method lies such a microeconomic indicator as gross output. The latter represents the value of goods and services produced by economic units - residents - for a certain period. This includes the production of industrial and agricultural products in value terms, transportation of goods, the cost of construction and installation work, and the production of other industries. The cost of services includes wholesale and retail trade services, logistics and procurement, communication services, healthcare, culture, science, public organizations, organ services government controlled, defense, financial institutions, pensions, services of various organizations serving enterprises and institutions. The volume of gross output also includes some categories of goods produced but sold. These include:

• products produced by enterprises for intra-industrial consumption
• products used for the construction of buildings and the production of other fixed assets
• products and services exchanged by barter
• products and services used to pay labor in kind
• agricultural and food products produced by households for their own consumption
• other products produced by households
• imputed income from living in your own home
• imputed payment for financial intermediary services

As for ground rent, it is considered as income from property and is not included in gross output. Thus, gross output includes the entire amount of goods and services produced in the national economy.

Calculating GDP using the production method consists of taking into account the gross output of the reporting period of production units of all industries at production prices minus their value of intermediate consumption at consumption prices. Thus, GDP is the sum of the added value of all producers of goods and services of a given state. Intermediate consumption includes:

• products and material services used in the production process (purchased and own production)
• payment for intangible services
• additional expenses (travel allowances, special clothing, special food, personal protective equipment, expenses for vocational training frames)
• purchase of food and drinks by hotels, cafes, restaurants, medical and educational institutions
• expenses for current repairs
• food and service for military personnel
• expenses for the purchase of military equipment
• payment for services of financial intermediaries

In accordance with distribution method GDP is the total amount of income of all economic units and the population from all types of economic activity, as well as depreciation charges. More precisely, GDP as an income stream is represented by:

• firstly, the income of the owners (i.e. the amount of wages, interest, rental payments and other property income on the property before taxes)
• secondly, state revenues in the form of various indirect taxes
• thirdly, in the income of the business sector it is necessary to take into account depreciation deductions, which go towards the purchase of investment goods

You can consider GDP as the sum of primary income (wages, profits and other income), redistributed income (interest on deposits, income from bonds, dividends, social security receipts) and depreciation charges.

In more detail, GNP as an income stream includes the following components:

1. workers - this is, first of all, wages, which are paid by the state and entrepreneurs to those who offer labor, plus many additions to it (employer contributions to social insurance and a variety of private pension, health care, and unemployment funds).
2. Profits of firms and corporations are the income that remains after deducting producer expenses for wages, rent and interest. They are used to pay taxes, dividends, and retained earnings of corporations.
3. Income from unincorporated, individually or family-owned businesses and income from self-employed workers (lawyers, writers).
4. Income of property owners (real estate and natural resources), i.e. rent payments.
5. Percentage on loan capital, used in the production of GNP. Loan interest is the payment of private business income to the owners of monetary capital.
6. Depreciation is an annual deduction that shows the amount of capital consumed in the production process. In addition, GNP by income includes indirect taxes, i.e. value added taxes, sales of goods, excise taxes, customs duties etc. The state receives these unearned incomes for its maintenance by increasing prices. Government subsidies are deducted from GNP.

When applying the final use method, GDP will appear as final consumption of material goods and services, capital investment, growth of material working capital and the balance of foreign trade operations. Thus, GDP will include four streams of expenditure:

Firstly, Consumer Expenditures These are household expenditures on non-durable and durable consumer goods, as well as expenditures on services. The letter C is used to designate the totality of these expenses.

Secondly, the state, represented by its authorities, acts as a consumer, purchasing goods and services, for example military equipment. Government consumption expenditure is denoted by G. It is important to note the fact that government procurement excludes all government transfer payments, since this category of expenditure does not reflect an increase in current production and is simply a transfer of part of government revenue to certain categories of persons.

A set of consumer and public procurement represents final consumption. Household final consumption expenditure includes:

• purchases of goods in the public and cooperative sectors, on the market, from private individuals and self-employed persons
• purchases of market consumer services
• rent and utility bills
• payment for household services
• purchasing vouchers to sanatoriums, holiday homes and boarding houses
• payments for services of paid medical institutions
• expenses for purchasing tickets for entertainment and entertainment events
• payment for transport and communication services, legal and financial services
• trade markup on goods purchased through consignment stores
• value of products produced by households for own consumption

Thirdly, gross private domestic investment (I). They represent the expenses of the private business sector of a given state for the increase in investment in a given year (net investment), as well as investment goods intended to reimburse consumed machinery, equipment, instruments, etc., i.e. depreciation

fourthly, Some of the goods and services produced in the state are exported outside the state (export) and consumed in other countries, so they should be added. On the other hand, imported goods and services are worth subtracting because they are produced in other systems and do not reflect national production. Thus, the fourth component is net exports, i.e. difference between exports and imports (X).

Based on the above, GDP by end use is equal to:

Calculating GDP based on different components inevitably leads to discrepancies in its quantitative estimates. Most often, the discrepancies that arise are caused by the fact that the collected statistical data do not provide an absolutely reliable reflection of the quantitative content of economic transactions. In countries with a developed statistical service, such deviations are insignificant and at the GDP level, as a rule, do not exceed 1-2%. In statistical reference books, discrepancies between the values ​​of GDP calculated in various ways, as well as some other macroeconomic indicators, are reflected in a special column "statistical discrepancies".

GNP - gross national product - is the main indicator characterizing the economic activity of a state. The main condition is that countries must be used, regardless of where the manufacturer is located. The formula for calculating GNP shows at what level the state is in terms of economic development.

Definition

In economic theory, it is customary to talk about the Gross National Product as the total market value of all goods and services produced by residents and ordinary residents for a certain period of time (per year). When calculating the GNP formula, the following nuances must be taken into account:

• the term “gross” means aggregate, which means literally all goods and services will be summed up;
• the calculation is always made in monetary terms;
• the calculation does not take into account all intermediate goods or services, we are talking only about those that are delivered to the final consumer;
• The formula for calculating GNP does not take into account financial transactions and trade in goods that were already in use.

Methods

GNP can be viewed from three perspectives. The simplest thing is to collect all the goods and services produced in monetary terms and calculate how much each resident of the state spent on them.

Of course, the data will be taken from the declarations submitted by registered enterprises. The formula for calculating GNP is called distribution.

The second way is to count not income, but the cost of added value of products. In the process of producing goods and services, each company incurs costs: wages, depreciation, equipment. If we add up these amounts, we will estimate the level of the economy. But raw materials are not taken into account, since they are the final product for other companies specializing in their production.

Formula for calculating GNP based on expenses

It looks like this: GNP = LS + VI + GZ + E h

PP = consumer personal expenses.

VI - total investments within the country.

GS - government expenditures on purchased goods and services.

Eh - net export.

Let's give brief description each of the components.

Personal consumer expenditures are household expenditures on the purchase of essential goods, which includes food and clothing, furniture, appliances, and luxury goods. All services provided of any nature are also taken into account. The only exception is real estate. It is not taken into account in GNP.

Gross domestic investment includes the following categories:

• investing capital in improving the production process;
• in construction;
• to stocks.

The total indicator Ig is calculated as the sum of additional investments per year plus depreciation costs.

Public procurement takes into account the costs of the government apparatus, including schools, hospitals, armies, and administrative structures. The exception is transfer payments.

Net exports are the difference between the quantity of goods exported and those imported. If exports exceed imports, then the indicator will have a monetary value. Otherwise the value will be negative.

Formula for calculating GNP by income

It looks like this: GNP = ZP + R + % + Pr + AO + NB

Salary - salary.

R - rent.

% - percent.

Pr - profit.

AO - depreciation.

NB - indirect taxes on business.

In economic theory, all income taken into account when calculating by this method is conditionally divided into two groups:

1. Income as a production component. Depending on the method of obtaining, they are divided into:

• Every person receives a salary for his work. White salaries reflect reality, but black and shady deals worsen the indicator values, since they are not officially taken into account.
• Rent is the income of individuals and legal entities from the rental of land or real estate. Only transactions officially confirmed by documents are taken into account. Everyone who works unofficially violates the procedure for calculating GNP.
• Interest is the amount of income received from an investment.
• Profit is the difference between income and expenses from business activities.

One of the main indicators of the SNA, reflecting the volume of production in the economy, is the gross domestic product and the gross national product. Gross Domestic Product (GDP)- the market value of the entire set of final material goods and services produced in the territory of a given country over a certain period of time (most often a year). Gross National Product (GNP)- the market value of the entire set of final material goods and services produced using only national factors of production, regardless of where they are located - in the territory of a given country or abroad. Thus, part of the GNP is produced abroad, on the other hand, part of the products that are created in the country, but when using resources belonging to other countries, is not taken into account in the GNP, but is included in its GDP. That is, the market value of products produced at Russian enterprise abroad, will be taken into account in the GNP of Russia and in the GDP of the country where the enterprise operates. The relationship between GDP and GNP is presented as a diagram in the figure.

Quantitatively, the difference between GDP and GNP is determined by the amount of net income from foreign factors of production:

GDP = GNP + Net Foreign Factor Income

Net foreign factor income, in turn, is the difference between foreign factor income paid to other countries and income from domestic factors located abroad:

Net income from foreign factors of production can have both positive and negative meaning. If it is positive, it means that foreign-owned resources produced more output and income in a given state than the resources of that state abroad. For most countries, the difference between GDP and GNP is negligible. For the USA and Russia, it is no more than for countries such as Luxembourg, Switzerland, and the Gulf countries - approximately 10%.

In the SNA, the main place is occupied by the GDP indicator, and it is to this that we will further focus our attention. First, we describe the features of its calculation and measurement. Firstly, GDP is taken into account in monetary form, which is due to the impossibility of summing up natural Indicators, which measure the production of a wide variety of products (pieces, tons, meters, etc.). Secondly, GDP takes into account not only the production of material goods, but also services. Thirdly, GDP includes only the value of final products, and intermediate products are taken into account using the value added method. Under the final product refers to a product or service intended for direct consumption by the population (households) or business. Intermediate product- goods used for further processing or resale. Intermediate goods are consumed in further production, while final goods are not. The existence of an intermediate product is fraught with the danger of double, triple, etc. counting, when the overall result (the cost of products produced in society) turns out to be inflated several times. Let's explain with an example. GDP includes the cost of finished products (for example, a cotton shirt), but if GDP also includes the cost of fabric, threads, and other things used to create the shirt, then the GDP value will be inflated several times. The fact that GDP only takes into account final product, does not mean that intermediate stages of production are not taken into account. Accounting is carried out by summing up the added value created at each next stage of the movement of manufactured products. Added value - market price products produced minus the cost of materials used to create them. Fourthly, some types of transactions are not reflected in GDP:

Transactions with securities - the funds involved in these transactions are not directly involved in the current production of products;

Government transfer payments (pensions, scholarships, social benefits) - a feature of government transfer payments is that their recipients do not make any contribution to GDP in response to these payments. Thus, their inclusion in GDP would lead to an overestimation of this indicator;

Private transfer payments (inheritance, gift, monthly subsidies received by students from home, etc.) - these payments are not the result of production, but only the act of transferring funds from one private person to another;

Operations on the market for used items, i.e. items that have gone through several stages of resale. GDP takes into account only two stages of sales - wholesale and retail. The rationale for excluding sales of second-hand goods from GDP seems very clear: such sales either do not reflect current production or involve double counting.

Fifthly, some types of activities are not reflected in GDP: work in the household; shadow sector of the economy; work of scientists, inventors, teachers at home. Sixth, GDP accounts for goods and services produced by the government and not sold on the market (equipment for national defense and public order, free education). The cost of government services is usually taken to be equal to wages paid to government employees.

As you know, GDP is a certain fixed amount of goods and services produced in a society in a year. At the same time, this amount of goods is sold on the market, and it can be calculated by summing up the expenses of buyers for the purchase of this mass of goods. On the other hand, the amount of expenses, according to the model of economic circulation of goods, income and resources, must correspond to the amount of income. In this regard, there are two methods for calculating GDP - by the flow of goods and services (expenses) and by the flow of income. GDP calculated from the income stream must be equal to GDP calculated from the expenditure stream. In fact, this is not just an equation, it is an identity. Buying, i.e. spending money, and selling, i.e. receiving money, are two sides of the same transaction. What is spent on a product is income for those who invested their human and material resources in the production of this product and its sale on the market.

To determine the state of economic well-being of a country, there are a significant number of different criteria with the help of which the country’s macroeconomic indicators are compiled. There are also those that relate to psychological, social and others. But in this article, only those that indicate the level of economic prosperity are of interest, or rather, two of them: gross domestic product and gross national product. AND main question: What is the difference between GDP and GNP? In most countries of the world, these indicators do not differ much from each other. But there is a difference between them, and within the framework of the article it is necessary to find out how much the values ​​​​differ when calculating, why they are calculated and, finally, what is the meaning of these parameters, and what are these macroeconomic indicators in general.

What's happened

Gross domestic product refers to the total value of all produced material goods and services rendered that were provided and brought into a state of readiness for sale. Moreover, products made within the borders of a certain country are taken into account. This is the main difference between GDP and GNP. Counting is carried out in nominal banknotes. But conditions should be taken into account, because sometimes products can be included in GDP, and sometimes they cannot.

Example of calculating GDP

So, if there is a certain factory that produces semi-finished products and exports them abroad, then the total cost of semi-finished products produced by the enterprise will be added to the gross domestic product. But if the plant uses them in the future itself to manufacture more advanced and necessary products that will be exported, then the cost of the further product (the very final one, ready for external sales) will be added to the value of GDP. It should be said separately what real and nominal GDP/GNP are. The second means what is currently available, while the first means what it should be as a result of dividing GNP by the general price level. Quite confusing for a non-expert. Main difference, which needs to be understood when studying GDP and GNP, is in the territorial aspect of calculation.

What is gross national product

The gross national product is understood as the total value of material goods and services that were produced and provided by representatives of one people throughout the entire Earth. Compared to calculating gross domestic product, it is more labor-intensive and only gives a relative idea of ​​the standard of living. It's all about use Money: so, if a person moved to another country and started business there, GNP takes into account the income that he brings to the state, but this income he brings to a completely different person, from whom his homeland does not receive direct taxes and investments in the economy. A bypass effect is possible when money earned abroad is transferred to the homeland, but even this option is not optimal from the point of view of using human potential. How GDP differs from GNP should already be clear at this stage; if not, you need to read the previous two paragraphs.

How is GDP calculated?

Gross domestic product for a certain year is calculated in this way: the market value of all products produced by a country is summed up in a certain monetary value, which is ready for sale and use abroad by the enterprise that produced it. Here we should digress and talk about the so-called positive shadow sector of the economy. Calculating the real gross national product of a country is very problematic.

Positive shadow GDP

Usually you can learn from TV screens, newspaper pages, on the radio, and on the Internet that the shadow sector is always bad. But only illiterate people can say that. Let's give an example: you have a garden of ten acres, and it was planted with potatoes, carrots, radishes, herbs and other crops. Time has passed, the time has come to harvest. Vegetables collected from plots do not openly contribute to the gross domestic product, therefore, technically, this is part of the shadow sector of the economy - the production of products without imposing taxes. But it is grown, as a rule, for one’s own consumption; it does not harm society, but can only reduce the profits of individual entrepreneurs. It is situations like this that make up the positive shadow sector of the economy. Why was this told? The fact is that in different countries of the world there have been and, perhaps, there will be more attempts to determine the boundaries of this sector and add it to the gross domestic product (or gross national product), but so far, due to the impossibility of obtaining accurate data on the volume of work, such a calculation has not been possible is underway. The measurement of GDP and GNP is carried out in local currencies for “their” investors, and in US dollars for presenting data to international ones. Conversion is carried out at the official exchange rate.

How is GNP calculated?

The gross national product is calculated based on the data provided by people who have citizenship of a certain country, or, if there is a division into nations (provided for in passports), then on the basis of the income of representatives of one nation. This calculation technique is necessary to obtain information about the state of the state-forming masses as a reason for judging the state of affairs in the power itself.

Who calculates the gross domestic product?

GDP is calculated by two organizational forms: private and public. The tax and customs services and various statistics committees help the state collect the required information. The information they collect is quite accurate. But there are a number of pitfalls here that spoil government statistics. Among them: submission of false data by managers or owners of enterprises, deliberate falsification of data by the government or its subordinate structures. In world practice, it has been noted that owners of enterprises in capitalist countries have a tendency to reduce data, and increasing indicators is of interest to managers in countries with a significant public sector, such as in China, where scandals arise over and over again about enterprises overestimating their profitability and turnover indicators.

How do private structures count?

Private structures operate using other methods. They carry out calculations based on official data, but at the same time they check the data provided by other states on the amount of turnover, check with the data of banking institutions and other private structures that have access to the required type of information, and based on a comprehensive assessment they already make their own conclusions about the size of the gross domestic product and present their subjective judgments about the correspondence of government data to the real state of affairs. The calculation of GDP and GNP is carried out by them in order to provide additional confirmation of the financial capabilities of the power, as well as as an indicator of how trustworthy the country’s government can be from the point of view of a foreign investor.

Who calculates the gross national product?

GNP is calculated using almost the same methods as GDP, but the scale of action changes. Thus, if the gross domestic product is calculated for a certain territorial unit, then when calculating the gross national product it is necessary to take into account what is relevant to the people for whom the indicator is calculated.

The concepts of GDP and GNP are not very different for most countries, even when calculated by private entities. Although for some there are still differences, and they are huge. One of these states is Tajikistan, which receives 60% of its gross domestic product from the work of economic migrants. Thus, the gross national product of this country is a multiple of GDP.

Why is GDP calculated?

There are quite a few methods for calculating gross domestic product. Initially, the state wants to know the potential of the economy in order to be able to plan further consistent development state formation. Also, a comparison of gross domestic product indicators allows you to view the progression and stability of its development. That is, data is provided by which potential investors will decide whether the country meets favorable indicators for them and whether it is worth investing in a project.

GDP is based on a number of other indicators that show the overall level of living comfort, a person’s ability to realize their talents, the level of social security and many other aspects of life. One such indicator is the index human development. But even if things are going badly in a country, then calculating the gross domestic product has a certain meaning: it uniquely shows the level of openness in the country, and although in moments of decline it restrains investors’ investments and causes panic among them, when growth begins it can provoke those who invests money in assets that have reached the lower level of value, and, using the snowball principle, cause economic growth. GNP and GDP indicators are valuable precisely as indicators of a country’s level of development, indicators of possible potential that can be worked with and which can be developed, converting into profit.

Why is GNP calculated?

The main purpose, which should only be mentioned, is to find potential reserves. The fact is that migrants who have left the country and are conducting economic activities in the territory of another state can transfer money to their homeland. And ideally, having saved up some money, they can return home and start their own business, creating jobs and thereby revitalizing economic life. But the problem is that although they try to take everyone into account, a rather small number returns to their homeland, so it is impossible to consider the entire potential as usable. Usually in various models indicators from 20 to 80 percent are taken into account. Data is used to identify groups of people who are most likely to return.