Why are GNP figures generally lower than the GDP figures in South Africa
Answers
When GNP (Gross National Product) is lower than GDP (Gross Domestic Product), it would mean that flow of remittance or funds from other countries, from citizens of South Africa, is considerably less. Value of finished, domestic goods and services, is more than the value of goods and services, which includes flow of funds from abroad.
GNP and GDP are measures of a country’s economy, based on total value of goods and services produced over a certain period of time.
The GNP (Gross National Product) in South Africa is generally low than the GDP (Gross Domestic Figure) because there are outside businessmen, companies and professionals working in South Africa. More importantly the imports are very high in value than the exports. This causes more income flowing out from South Africa and thus GNP figures lower than GDP.