Listening to speeches of politicians or reading economic articles devoted to the reasons for the endless problems of our country, we often hear about such an indicator as the gross national product. This, economists say, is an indicator of the state of the country's economy, which is only slightly inferior to the gross domestic product (GDP). Interestingly, another 20-25 years ago, the gross national product (GNP) was considered the most important indicator, which shows at which phase of the cycle the economy is located, so you definitely will not interfere with getting to know him better.
Gross national product is a monetary expression of the whole aggregate of products released per year in the territory of a given country. Unlike the gross domestic product, it does not take into account who it was issued: by residents or non-residents. Gross national product is an indicator that includes not only the goods produced, but also the services rendered and the work performed. It is important to understand that only final products are taken into account, the value of which is expressed in current market prices. This is done so that there is no recounting, as well as confusion.
Gross national product is a macroeconomic indicator directly influenced by the country's currency rate. And this is a completely logical explanation. Just imagine that the GNP of the state in question has increased. What does this mean? First, it is likely that industrial production in the country has increased , which is connected either with an increase in its efficiency or with its expansion. Secondly, most likely, the volume of foreign investment has also increased. Thirdly, the export indicator has increased. All these factors lead to an increase in demand for the national currency. And can a "commodity", the demand for which is constantly growing, be cheap? The national currency is becoming stronger. But what happens if the gross national product grows steadily for several years?
It turns out that in this case we will encounter such a notion as inflation. To prevent the depreciation of the national currency, the state will have to raise interest rates, which will reduce the amount of money in circulation.
It is also important to understand that the VP is real and nominal. The real is calculated in the prices of the period that was chosen as the base, which allows you to get a really realistic picture of whether the well-being of the country's population is growing or money is simply depreciating.
Calculation of gross national product can be carried out by means of various methods. According to economists, this can be done in three main ways. First, you can add up all the income for the year. The amount of wages, interest, rent payments, depreciation and indirect taxes is taken into account in the method of calculating the GNP for income. Secondly, it is possible to calculate what amount will be needed to purchase all the products released for the year. Thirdly, GNP can be calculated based on the added value produced . Some economists believe that the latter option is just the most reliable.