What Is Gross National Income per Country?
The term “GNI per country” refers to a nation’s gross national income (GNI). A country’s economic output is measured by its gross national income (GNI), which is calculated by adding the value of all goods and services produced there, including both domestic and international sources of income. GNI is frequently used to evaluate a nation’s economic progress and level of life as well as to compare the financial health of various nations.
Different methods, such as the Atlas approach, the World Bank method, and the IMF method, can be used to determine GNI per nation. 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 country can be measured as a per capita number or in absolute terms (for example, in US dollars) (i.e., per person). GNI per capita is frequently used to assess the economic health of various nations and divide them into income categories according to their level of economic development.
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.