Gross National Income (GNI) is a term used in economics to measure the total income generated by all residents of a country, both individuals and corporations, within a specific time period, usually a year. It is used as an important indicator to assess the economic performance and standard of living of a nation.
GNI includes the total value of all goods and services produced by the residents of a country, whether within its borders or abroad, by taking into account the income earned from employment, self-employment, property, and investments. It also considers income receipts from the foreign sector, such as remittances and profits earned by nationals working abroad.
GNI is calculated by summing up four main components: wages and salaries, profits of corporations, rents earned on properties, and net income from abroad. It represents the overall income earned by the residents of a country and is considered a more comprehensive measure than gross domestic product (GDP), which only includes the value of goods and services produced within a country's borders.
GNI is a crucial economic indicator to analyze the overall economic growth, income distribution, and living standards of a nation. It is commonly used by policymakers, economists, and international organizations to compare the economic performance of different countries and to determine the eligibility for financial assistance, debt relief, and international aid programs.
