What does it mean, if the GNI of a country is lower than the GDP


To best answer your question we must first define GNI, and GDP. Even though we know, a little context would be practical... 'The Gross National National Income (or GNI) of a country is equivalent to the total amount of money earned by a nation's people and businesses. It is used to measure and track a nation's wealth from year to year. The number includes the nation's gross domestic product plus the income it receives from overseas sources. And the Gross Domestic Product (or GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time-frame. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health...' So, respectively, that is what it means.... But you could better construct your question to be more specific.

  • 1
    $\begingroup$ I don't think you need to mention wealth here. GNI and GDP are both flows and you have explained the difference between them, whereas wealth is a stock. $\endgroup$ – Adam Bailey Dec 8 '19 at 21:52
  • $\begingroup$ @AdamBailey No, but her question is vague to the extent that it implies : 1) she is unaware of the correct meaning of GNI and GDP, 2) it was asked to find the outcome of a down GNI scenario, [so much that it becomes lower than the GDP] or 3) her question is looking for the definition of both the _GNI_/_GDP_ ratio in a country.... So that is why I requested more clarification to be able to properly edit my answer... $\endgroup$ – Art Fowler Dec 9 '19 at 0:23
  • $\begingroup$ no GNI does not measure wealth. GNI stands for Gross National Income. Income and wealth in economics are not equivalent. Wealth is measured in terms of net assets not income. See Atkinson Inequality or Stiglitz Public Economics. $\endgroup$ – 1muflon1 Sep 4 '20 at 0:24

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.