Question

Why GNP figures are normally less than GDP figures in SA

Answer 1

Gross national product defined as gross domestic product plus income from abroad earned by citizens less domestic income paid to foreign residents. Thus gdp higher than gnp implies a net outflow of income to foreigners.


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Answer 2

GDP, or Gross Domestic Product is  the value of a nation's finished domestic goods and services owned by a country's residents over a period of time

Gross national product (GNP) is the market value of goods and services produced by all citizens of a country—both domestically and abroad.

While GDP is an indicator of the local/national economy, GNP represents how its citizens are contributing to the country's economy. It takes into account the citizenship but overlooks location, because of this it's important to note that GNP does not include the output of foreign residents

The reason why SA has lower GNP numbers than GDP is because ,there is more income flowing out, to foreign owners of South African businesses, than in, to South Africans who own foreign business