GDP counts production inside borders, whereas GNP counts nationals’ production wherever it occurs.
★ Must-know
📌 A country has a trade surplus when it exports more than it imports.
📌 A country has a trade deficit when it exports less than it imports.
Further detail
📌 A trade deficit means that a country spends more than it earns, whereas a trade surplus means that it earns more than it spends.
1. What do economic indicators help analysts understand?
2. What does gross domestic product measure?
3. What does a country’s trade balance compare?
What are economic indicators used to understand?
The evolution of an economy over time or across countries.
What does gross domestic product (GDP) measure?
Money produced within a country’s national territory by nationals and non-nationals.
What does the trade balance compare?
A country's exports with its imports.
When does a country have a trade surplus?
When it exports more than it imports.
Economic indicators
Figures to understand economic changes.
GDP vs GNP
GDP: production inside borders; GNP: nationals' production.
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