GDP and GNP – the tale of two numbers

Gross Domestic Product (GDP) is the total value of all goods and services produced in an economy in a given period.

Gross National Product (GNP) is the total value of all goods and services produced in an economy in a given period that accrue to that country’s residents.

Since the economic peak in 2007, Ireland’s GDP has fallen by 10.1% and GNP by 15.4%. The UK has contracted by 6%, the Eurozone by 5% and the US by 4% from their peaks.

The activities of multinationals boost our GDP and make us look better off than we are.

In Q3 of 2009, Rep Ireland’s GDP was €40.8 billion whereas GNP was €32.2 billion. Multiply Q3 GNP x 4 = €128.8 billion: Then think of the tax take of €33 billion and a budget deficit still at €20+ billion and you can see that we have a problem.

Q3 GNP was +0.3% but GNP was -1.4%. Therefore the recession persists.