GROSS NATIONAL

INCOME/GROSS
NATIONAL PRODUCT
and GROSS DOMESTIC
PRODUCT

MACROECONOMICS
What is GDP, GNI/GNP?
• GROSS DOMESTIC PRODUCT (GDP): GDP represents the total`
monetary value of all goods and services produced within a country's
borders over a specific period, usually a year.
• GROSS NATIONAL INCOME (GNI): GNI is the total income earned by a
country's residents and businesses, including income generated
abroad.
• GROSS NATIONAL PRODUCT (GNP): GNP measures the total market
value of all final goods and services produced by a country's residents
within a particular time frame, plus the net income earned from
overseas investments.
HOW TO CALCULATE GROSS
NATIONAL INCOME?

GNI = C (Consumption) + I
(Investment) + G (Government
Spending) + X (Net Exports )+
NFFI ( Net Foreign Factor Income)
• Consumption (or personal consumption expenditure)- is
the value of all goods and services acquired and consumed
by the country’s households.
• Investment -this is any domestic capital spending by a
country’s citizen-run businesses.
• Government Spending -this is all consumption and
investments made by the government.
• Net exports - this is the country’s exports MINUS the
country’s imports.
• Net Foreign Factor Income -this is income that the
country’s citizens earn abroad MINUS the income that
foreign residents earn in the country and send out of the
country
• According to the MacroTrends website and World
Bank, the GNP and GNI of the Philippines in 2022
was $457.02 billion USD PhP 24.93 trillion, a 13.07%
increase from 2021. This is the highest GNP that
the Philippines has ever recorded.

•According to the Philippine Statistics Authority

(PSA), the Philippines' GDP in 2022 was $992 billion
55,957.99 Peso in purchasing power parity (PPP)
terms. This is a growth of 7.6% from 2021.
 WHAT ARE THE SHORTCOMINGS OF
GROSS NATIONAL INCOME?
Shortcomings of Gross National Income: While useful for the additional view of
a nation's economy that it provides, GNI has drawbacks.

• GNI can be misleading when used to compare countries because it doesn't

account for differences in the size of populations.

• It accounts only for income in terms of economic development and offers no

insight into quality of life.

• GNI figures for countries with different currencies must be converted to a

common currency and thus may not accurately reflect a specific country's
purchasing power.
 WHAT ARE THE SHORTCOMINGS OF
GROSS DOMESTIC PRODUCT?
• Excludes Non-Market Activities:
• GDP only considers market transactions and excludes non-market activities such as
household work, volunteerism, and other informal sector activities. This can lead to an
underestimation of the overall economic activity and the value of certain contributions
to society.
• Focus on Quantity, Not Quality:
• GDP focuses on the quantity of goods and services produced, but it does not
differentiate between products that enhance well-being and those that have negative
social or environmental impacts. It does not consider the quality or social utility of
economic activities.
• Ignores Quality of Work:
• GDP does not consider the quality of employment or the overall well-being of workers.
It measures the total value of goods and services produced but does not account for
factors such as job satisfaction, work-life balance, or the nature of employment.
 GROUP 1:
BIAY, MARICAR S.
DOCTOLERO, EVANDER
MERCADO, SHIELA MARIE T.
USORIA, SHERYLL JEAN P.
VILLANUEVA, KYLLA MARIE A.

BSEd SOCIAL STUDIES 3