FirstBank EXPLAINER: What's the Difference Gross Domestic Product and Gross National Product?

Gross domestic product (GDP)and Gross national product (GNP) are two of the most often used economic indicators. Both indicate the entire market value of all commodities and services produced within a specific time period.

The value of finished domestic goods and services generated within a country's boundaries is referred to as the gross domestic product (GDP). Gross domestic product is the most basic indicator to measure the overall health and size of a country's economy

Gross national product (GNP), on the other hand, is the value of all finished goods and services owned by a country's residents, regardless of whether those goods are produced in that country.

These measures  reflect many approaches to estimating the size of an economy. While GDP limits  its interpretation of the economy to the country's physical borders, GNP broadens it to include the net overseas economic activities performed by its nationals.

Thus, any commodity produced inside Egypt will be included in the calculation of Egyptian gross domestic product, while any commodity produced using resources owned by Egyptians, even if it is abroad, will be calculated within Egypt's gross national product, and according to the same approach, goods and services produced using resources owned by foreigners in Egypt will be included in the national product of the countries that own these resources through their citizens.