Difference between GDP and NNP - Economics - Unit III- Employment Growth Informalisation and Other Issues

Question

Difference between GDP and NNP?

Vanita Rana · Accepted Answer

Basis
GDP
NNP

1 Definition
GDP refers to the market value of all the
final goods and services produced within the domestic country
during an accounting year inclusive of depreciation
Net National Product at the market prices
refers to the total market value of all the final goods and
services produced by the normal residents of a country both within
the domestic territory as well as outside the country

2 Inclusion/Exclusion
Depreciation is not taken into account in
its estimation Also, GDP is limited to the domestic territory,
thus, excludes NFIA
NNP excludes depreciation but includes
NFIA

Basis	GDP	NNP
1. Definition	GDP refers to the market value of all the final goods and services produced within the domestic country during an accounting year inclusive of depreciation.	Net National Product at the market prices refers to the total market value of all the final goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.
2. Inclusion/Exclusion	Depreciation is not taken into account in its estimation. Also, GDP is limited to the domestic territory, thus, excludes NFIA.	NNP excludes depreciation but includes NFIA.