Difference Between NNP and NDP
The key differences between NDP and NNP are given in the table below.
NNP = GNP - Depreciation
NDP = GDP - Depreciation
It is equal to the product of per capita income and population.
Currencies and the depreciation of assets are taken into account.
It gives the accurate total value of goods and services by a country.
It cannot be used for comparison across the world due to different rates of depreciation.
NNP is the National Income of an economy.
It will be always lower than GDP.
It is closely related to the concept of Gross National Product (GNP).
The difference between NDP and GDP indicates the obsoleteness of capital goods.
It indicates the total production of a country.
A decrease in the gap between NDP and GDP indicates the condition of capital stock in the country is improving.