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Net Domestic Product (NDP) and Net National Product (NNP) are both measures of economic performance. NDP calculates the value of all goods and services produced within a country's borders, minus depreciation on capital goods, while NNP accounts for the net production by residents of a country, including income earned abroad, and also subtracts depreciation. In essence, NDP focuses on domestic economic activity, whereas NNP considers the overall economic contribution of the nation's residents, including international factors. Both metrics are useful for assessing economic health, but they emphasize slightly different aspects of production and income.

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2mo ago

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What is the difference between NDP and NNP?

NDP and NNP are different (though sometimes they could be equal between each-other). "Domestic" means that it includes everything produced within country (domestically) and it doesn't matter who have produced it - foreigners or residents. "National" means that it includes everything that are produced by residents only (or by capital belonging to residents) - and it doesn't matter if it is produced domestically or internationally (for instance if I go to work into another country then my work should be included in national but not in domestic product).


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