Gross domestic product (GDP) is defined as "the value of all final goods and services produced in a country in 1 year".[3]
Gross national product (GNP) is defined as "the market value of all goods and services produced in one year by labour and property supplied by the residents of a country."[4]
As an example, the table below shows some GDP and GNP, and NNI data for the United States:[5]
GDP per capita (per person) is often used as a measure of a person's welfare. Countries with higher GDP may be more likely to also score high on other measures of welfare, such as life expectancy. However, there are serious limitations to the usefulness of GDP as a measure of welfare:
Because of this, other measures of welfare such as the Human Development Index (HDI), Index of Sustainable Economic Welfare (ISEW), Genuine Progress Indicator (GPI), gross national happiness (GNH), and sustainable national income (SNI) are used.[7]