What Is Gross National Income per Capita?
GNI per capita, also known as gross national income per capita, is a measurement of the average income received by a nation’s citizens. It is determined by dividing the gross national income (GNI) by the population of the nation. A country’s economic output is measured by its gross national product (GNI), which is determined by adding the value of all goods and services produced there, including both domestic and international sources of income.
GNI per capita is often used to compare the economic health of various nations and to chart the evolution of a nation’s economic production over time. Additionally, the World Bank and other international organizations use it to divide nations into income categories according to the level of their economic growth.
GNI per capita can be calculated using a number of different methodologies, such as the Atlas, World Bank, and IMF methods. The Atlas technique, which is based on the country’s currency’s market exchange rates, is the one that is most frequently utilized. Purchasing power parity (PPP) exchange rates, which account for regional variations in the cost of living, are used in both the World Bank and the IMF methods.
GNI per capita is normally stated in annual terms and represented in US dollars or an equivalent currency. It is a crucial sign of a nation’s economic health and inhabitants’ standard of living.
What Is Gross National Income (GNI)? Definition and Examples
A country’s economic production is measured by its gross national income (GNI), which is calculated by adding the values of all the goods and services it provides, including both domestic and international sources of revenue. Gross domestic product (GDP), which measures a nation’s internal economic output, and GNI are related concepts. GNI, however, takes into account revenue from international sources, including overseas earnings made by domestic businesses or foreign investments.
GNI is often used to measure a nation’s economic progress and level of life as well as to compare the financial health of various nations. Additionally, the World Bank and other international organizations use it to divide nations into income categories according to the level of their economic growth.
It can be calculated using a number of different methodologies, such as the Atlas, World Bank, and IMF approaches. The Atlas technique, which is based on the country’s currency’s market exchange rates, is the one that is most frequently utilized. Purchasing power parity (PPP) exchange rates, which account for regional variations in the cost of living, are used in both the World Bank and the IMF methods.