Gross National Income (GNI) refers to the total monetary value of all income generated by individuals, companies, and other entities within a particular country or territory, including income earned abroad. It is a measure commonly used by economists and policymakers to assess the economic health and productivity of a nation.
GNI takes into account several components of income, such as wages and salaries, profits from businesses, rental income, interest earned, and dividends received. Additionally, it accounts for income earned by citizens working outside their home country (known as remittances) and income generated by foreign-owned businesses within the country.
GNI serves as a useful economic indicator because it provides a comprehensive measure of a country's income flow and economic performance. It helps in comparing the relative economic conditions of different countries and assessing the level of development and standard of living within a particular nation.
GNI is often used in conjunction with other economic indicators such as Gross Domestic Product (GDP) to provide a more complete picture of a country's economic situation. It allows policymakers to make informed decisions regarding fiscal policies, development strategies, and resource allocation. Moreover, GNI per capita, which is the GNI divided by the population of a country, gives an approximation of the average income of individuals and is widely used to compare living standards across countries.
