3.2 ... and how does it differ from gross national income or GNI?

GNI or gross national income describes the country's revenue from production. The difference compared to GDP is that GNI additionally includes receipts of primary income from and payments of primary income to foreign countries, i.e. gross domestic product + receipts of primary income from foreign countries - payments of primary income to foreign countries = gross national income.

Primary income includes

  • wages
  • interest
  • dividends
  • reinvested profits from direct foreign investment
  • taxes on production and imports (VAT and customs duties levied by the EU)
  • subsidies (subsidies paid by the EU).
  • For EU administrative purposes such as the setting of membership fees, it is the GNI rather than GDP figures that are consulted. Foreign interest outlays are a major expense item and therefore Finland's GNI is traditionally smaller than its GDP.

    GNI has replaced the concept of GNP (gross national product) as from 2002. The two concepts are not identical because GNP includes neither taxes paid to nor subsidies received from the EU.


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